A new pay-per-mile tax system is reportedly being considered by the Government in what would be the biggest tax shake-up in decades.
Drivers would be charged based on how much they drive, rather than the current fuel duty system.
It would aim to create a "fair" system but critics argue it could do the opposite by punishing those who rely on their cars more, such as those living in rural areas.
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There have been suggestions motorists could be charged as much as 15p per mile, with an announcement potentially coming at November's Budget.
The average driver covering 7,000 miles annually would face a £1,050 outlay in this scenario, while those who do 10,000 would have to fork out £1,500.
Those facing long daily commute could be left paying thousands.
The pay-per-mile system is reportedly being considered due to falling fuel duty revenue as more drivers switch to electric by the year.
Treasury officials have pointed out those who currently drive more already pay more in fuel duty when they fill up at the pumps.
Rhydian Jones, motoring expert at Confused.com car insurance, said: "Ahead of the Chancellor's Autumn Budget, there are discussions that a pay-per-mile tax for drivers could be introduced.
"This proposed system would see motorists charged for road taxes based on how often they drive.
“A change like this could have some benefits for drivers, including: bringing costs down for those who drive less, such as remote workers or pensioners; potentially reducing congestion on roads as drivers will consider using their car less to avoid costs.
“However, this change could also be challenging for others.
"Commuters, families, and those living in rural areas who could face higher costs as they take longer and more frequent journeys.
"For those who drive longer distances or during peak hours could be hit hardest if variable rates apply depending on time.
"A move to pay-per-mile charging would mark a major shift in how motorists are taxed and could redefine the cost of driving for millions across the UK, and could also give another boost to drivers going green in an effort to cut down on longer term costs.”