Holidays to France to cost MORE under Rachel Reeves’ Budget plans

DRIVING to France on holidays is set to get more expensive for families under plans for a new road tax in the Budget.

Chancellor Rachel Reeves is said to be looking at introducing a pay-per-mile road charge for electric vehicles.

Collage of Rachel Reeves with icons representing electric car charging, roads, gas pumps, and cars.
Rachel Reeves is plotting to hit EV drivers with a 3p-per-mile road tax in her upcoming Budget

The rules could slap drivers of lighter EVs with an extra charge of 3p per mile, while those with heavier EVs could have to pay up to 9p per mile.

Not only would the rules apply when driving on UK roads, but motorists would also have to pay the tariff when taking their cars abroad.

It would push the cost of holidaying to France and other European countries by car for the more than 1million Brits who drive an EV.

Drivers travelling to France would also be paying tax twice, as they will also have to pay fees at the country’s 90 motorway tolls.

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It means a 1,530-mile round trip from Calais to Nice would cost an extra £45.90 for someone driving a light EV, according to The Telegraph.

AA president Edmund King told newspaper: “You would effectively be paying tax twice – to both the French and UK Government.

“I can’t really see any practical way around it. It would be pretty bureaucratic to have to check your mileage at Dover and have it stamped on some kind of certificate to say you’re leaving the country for two weeks.

“There are already concerns about the extra checks at the borders, so I think it would be a nightmare. It seems EV drivers would have to pay double taxation.”

Brian Macdowall, of the Association of British Drivers, slammed the plans as “utterly illogical”.

Reeves is set to announce the new pay-per-mile scheme in her Budget on November 26, with rates expected to come into force in 2028.

Motorists could be paying an extra £250 a year under the new tax.

The amount of cash being raised by fuel duty is dipping as more drivers switch to EVs, so the Chancellor is now said to be looking at ways to plug this gap.

Fuel duty helps pay for road maintenance such as filling potholes, while also going towards public services including schools and hospitals.

The average petrol and diesel driver pays around £480 a year in fuel duty and it is understood that the Treasury want everyone to pay their fair share.

You can check our map to see how the new 3p-per-mile tax could hit your pocket here.

What other tax hikes are expected in the Budget?

Brits are bracing for a raft of tax hikes in the Budget this month as the Chancellor tries to fill a £30billion black hole in the public finances.

In another blow to motorists, Reeves is expected to axe the 5p temporary cut in fuel duty introduced in 2022.

She is expected to hike income tax by 2p – a breach of Labour’s election promise.

While this would be offset by a 2p National Insurance cut for workers paying the basic rate of tax (20%), pensioners and landlords would take a hit.

It also emerged this week that the Chancellor is to target salary sacrifice pension schemes.

Salary sacrifice allows an employee to deposit a share of their income, which is matched by their employer, into a pension scheme.

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At the moment, there’s no limit on how much workers can save before paying national insurance.

But under plans first reported in The Times, workers would have to pay the full rate of NI once they saved £2,000.

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