SCRAP FUEL DUTY AND ROAD TAX, AND PAY-AS-YOU-DRIVE

20th November 2025

The independent, non-party think tank Enlighten has today called for Chancellor Rachel Reeves to abandon plans for a per-mile fee for electric vehicle owners in the Budget, in favour of a more comprehensive reform of the way we charge drivers to use roads.

It has been reported that the Chancellor proposes a self-assessed 3p per mile fee for electric vehicle owners.

Enlighten's Research Director Alison Payne has said that this move "fails to recognise the broader problems", and has called for all motoring taxation to be scrapped and replaced with a pay-as-you-drive system that reflects where and when people travel.

The proposed pricing system would take into account:

The location of the road, particularly its rurality and the public transport options available
The time of day
Real-time congestion levels
A briefing note can be read here.

Enlighten's Research Director Alison Payne said:

"Rachel Reeves is right to identify that the current system of charging motorists is ineffective. It fails to recognise the shift to electric vehicles, and arguably punishes those who cannot afford to change car frequently.

"However her solution fails to recognise the broader problems. She should abandon it for now, and instead create a system of pay-as-you-drive road pricing.

"By scrapping all current motoring taxes and charging drivers based on where they drive and when they drive, we can create a system which is fair and sustainable, and which will encourage people to think carefully about their transport choices."

Read the report HERE
Pdf One Page

Enlighten is the new name for Reform Scotland, a non-partisan public policy institute founded in 2008, which works to promote increased economic prosperity, more effective public services and expanded opportunities for all Scots.