Campaigners have urged the Chancellor to adopt a pay-per-mile road charging scheme for electric vehicles (EVs) to address a £5bn shortfall in tax revenues caused by the decline in fuel duty as petrol and diesel cars are phased out.

The Campaign for Better Transport (CBT) highlighted this in a letter to Rachel Reeves, stressing that tax revenues could severely drop between 2028 and 2033.

Silviya Barrett of CBT emphasized the urgency, proposing a small initial charge on zero-emission vehicles with exemptions for current drivers.

The RAC's policy head, Simon Williams, supported the idea, suggesting a tiered system based on emissions.

The Confederation of Passenger Transport also backed the scheme for its potential benefits in meeting net-zero carbon targets and reducing congestion.

Despite opposition and precedent for political backlash, the campaigners argue for immediate action to establish fair road taxation for all vehicles.