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Every Labour Budget change planned for drivers from fuel duty to pay per mile

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With Prime Minister warning that the first budget is likely to be 'painful' for Brits, many are predicting the introduction of a wide range of measures that could leave motorists out of pocket.

Many motoring organisations and authorities have announced a number of predictions on what Chancellor Rachel Reeves could announce on Wednesday, with the most likely being the first for more than a decade.

Simon Williams, Head of Policy at the , has previously stated that the Government have little choice but to raise the duty, which is paid on and alike, from its current rate of 52.9p per litre.

He explained: "We've reached the conclusion the Chancellor has no option but to put fuel duty back up to 58p a litre in October's Budget.

"She knows the 5p discount is losing the Treasury £2bn a year. She also knows drivers were overcharged by a staggering £1.6bn last year according to the Competition and Markets Authority's recent report."

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Another motoring tax that could be raised in the October Budget is road tax, with the flat rate all vehicles made since April 2017 have to pay typically rising with the current inflation rate.

Currently standing at £190, the figure could be increased and tax bands, which are usually applied for the first year the vehicle is registered, might be altered.

Any increase in road tax will also be applicable to electric vehicles, with the zero-emission cars losing their exemption from the charge in April 2025.

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However, some have argued that the Government could change the way in which vehicles are taxed completely by rolling out a pay-per-mile system which would charge drivers a unique fee based on the amount of miles they have covered.

Supporters of the idea claim that a pay-per-mile system, sometimes called 'road pricing' would be fairer to electric car owners whilst also incentivising those who use greener forms of transportation for short trips.

Nevertheless, opponents argue that it could put rural motorists who have less access to public transport and low mobility drivers at risk of higher tax bills, potentially pricing them off the road.

Finally, whilst the Government has axed a number of benefits surrounding electric vehicles, such as the £5,000 subsidy on new models and tax exemption, a number of motoring organisations are calling for a VAT cut on public chargers.

One of the most convenient ways to replenish the battery of an electric vehicle, public chargers are quicker but considerably more expensive to use than home-based alternatives, partially due to the higher VAT rate.

Some motorists are arguing that, by reducing VAT on public car charging and the purchase price of electric models, more members of the public would be encouraged to make the switch.

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