Hackney Council proposes pay-per-mile road pricing pilot
The Green Party-led council is lobbying for a trial of smart road pricing in London.
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Hackney Council is considering lobbying for a pilot scheme for pay-per-mile road pricing in London. The proposal is included in the council's draft Transport Strategy for 2026 to 2036, which is led by the Green Party.
The strategy document states that Hackney will "continue to engage in the debate over road user charging and will consider lobbying for the introduction of systems of smart road pricing such as pay-per-mile in London as a pilot scheme or on a national basis." This move comes ahead of a national road user charging scheme for electric vehicles planned by the UK government.
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National Electric Vehicle Charging Scheme
The UK government plans to introduce an electric vehicle excise duty (eVED) from April 2028. This scheme will charge fully electric vehicles 3 pence per mile and hybrid vehicles 1.5 pence per mile. The eVED is expected to generate £1 billion in revenue for the Treasury in the 2028/29 financial year, with projections indicating this figure will increase to £2.3 billion within three years.
This new charge is intended to compensate for electric vehicle owners not paying fuel duty at the pump, while also addressing road congestion and wear. The eVED will be applied in addition to the existing Vehicle Excise Duty (VED). Drivers will be required to declare their estimated annual mileage and provide current mileage readings when renewing their VED.
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Mayor's Stance on Pay-Per-Mile
Despite Hackney Council's proposal, Mayor of London Sadiq Khan has indicated he has no intention of introducing pay-per-mile road charging in the capital. As reported by The Standard, Mr Khan has stated, "As long as I am Mayor, we are not going to have pay-per-mile."
Opposition Reaction
The proposal from Hackney Council has drawn criticism from the Conservative Party. Shadow Transport Secretary Richard Holden described the plan as part of a "bonkers war on motorists," suggesting it was "dreamed up by people who seem to think driving is a luxury."
Questions this report answers
+What is Hackney Council proposing regarding road pricing?
Hackney Council's draft Transport Strategy 2026-2036 includes a proposal to lobby for a pilot scheme of pay-per-mile road pricing in London. The council aims to engage in discussions about road user charging and potentially advocate for its introduction.
+When will the UK government introduce its road user charging scheme for electric vehicles?
The UK government plans to introduce a national road user charging scheme for electric vehicles, known as eVED, in April 2028. This scheme will apply to fully electric and hybrid vehicles.
+How much will the new electric vehicle road tax cost?
The proposed electric vehicle excise duty (eVED) will charge 3 pence per mile for fully electric vehicles and 1.5 pence per mile for hybrids. This is in addition to existing VED, and rates are expected to increase annually with inflation.
+Will Sadiq Khan introduce pay-per-mile charging in London?
Mayor of London Sadiq Khan has stated that he will not introduce pay-per-mile charging while he remains in office. His position is that such a scheme will not be implemented under his leadership.
WE FILE
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The London Travel Desk assembled this report from the outlets listed below. Language-model drafting is reviewed under human editorial supervision, with scoring notes and corrections kept visible.
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