UK think tank suggests pay-per-mile car tax, may increase costs for some drivers, and plans to include electric vehicles from 2025.

The UK think tank Policy Exchange has proposed a pay-per-mile car tax to replace the current road tax system, potentially increasing costs for some drivers by up to £586 annually. The plan, supported by Edmund King of The AA, aims to address a £24 billion shortfall in fuel duty revenue and includes tracking via ANPR cameras. The Labour government is considering this proposal, which may also affect electric vehicle owners starting in 2025.