Drivers have been warned that a proposed change to the way in which vehicles are taxed could create a sizeable divide between male and female motorists.
With the next budget only a few weeks away, many experts are currently predicting what measures will affect motorists in a bid to reduce a £22 million ‘black hole’ the new Government has stated it inherited.
Some have argued that a pay-per-mile tax system could be rolled out across the UK, which would see drivers charged a unique figure based on the distance they have travelled.
The system would replace the current way of calculating road tax, officially known as vehicle excise duty (VED), which is initially based on the vehicle’s emission output and a flat fee of £190 for subsequent years.
Whilst supporters of the scheme state that it will be a fair way of charging owners of electric cars, who will pay for their road tax for the first time in April 2025, others have raised concerns that it could lead to bigger disparities among motorists.
One way in which drivers could be left divided if a pay-per-mile tax system is enforced is the fact that men on average drive more miles than women each year.
According to figures from the vehicle leasing firm Leaseloco, the typical male motorist covers around 6,000 more miles per year compared to the average female driver.
Using the prediction that the pay-per-mile tax figure could be as high as 15p per mile, this could mean that the average man would be about £900 more than the typical woman.
The Government has yet to confirm whether any reforms to the way in which vehicles are taxed will be announced in the October Budget, however more car owners are set to pay from 2025.
From April 2025, electric car owners will be set to pay for road tax for the first time, as one of the last Government incentives to encourage drivers to make the switch away from a petrol or diesel car ends.
As a result, under the current system of vehicle tax, electric car owners will have to pay £190 per year or a staggering £600 fee for the first five years if the model has a list price of more than £40,000.
However, tax changes are not the only potential reforms that could leave motorists out of pocket in the upcoming budget.
Some have also predicted that the Government may decide to raise the fuel duty rate by 10p. If the change is announced, it will be the first time the duty, which is applied to petrol and diesel, has increased since 2012.
If the rising fuel duty rate has a direct impact on fuel prices, drivers could end up paying around £5 more each time they fill up their vehicle’s tank.
