Car tax pay per mile changes will be looked at this Autumn to plug ‘fiscal black hole’

Electric car owners do not need to pay traditional Vehicle Excise Duty (VED) and are also not contributing to fuel duty revenue.

Huw Merriman, Transport Select Committee Chair has previously said the scheme may be a way to “reduce congestion” and “promote active travel”.

He said: “A consequence of the transition to electric vehicles is a potential £40 billion annual fiscal black hole, due to the reduction in Fuel Duty and Vehicle Excise Duty.

“Something will have to change.