“So, how are we going to become more efficient? How are we going to make this work?
“The motorist, who they are looking at to try and fill this void is sustaining massive hardship already so how can the motorist say ‘no problem mate I m doing really well, here you go’?”
The Treasury has warned the switch to electric cars could leave a £40billion hole in public spending.
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This is because the revenue generated from traditional Vehicle Excise Duty (VED) and fuel duty charges would fall as more made the switch away from petrol and diesel vehicles.
To combat the fall in spending, the Chancellor is understood to be considering the introduction of a new pay per mile road pricing charge.
| UPDATED: 14:43, Tue, Jan 12, 2021
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The motoring specialist has hinted tax charges should be the same for electric vehicle owners as those with petrol and diesel cars. This would be more important over the next decade as more drivers make the switch to electric models ahead of a 2030 petrol and diesel sales ban.