Treasury report on tax increase due to electric cars

The Treasury has admitted taxes need to increase or services cut to compensate for a loss of fuel tax income.

Thanks to the emergence of electric cars, the Treasury in the UK has acknowledge the issue of a future loss of more than £30 billion from drivers.

In a new review, a debate over how driving should be taxed in the future includes the suggestion of charging motorists for every mile they drive.

However, the AA noted that this would a difficult political sell, and instead proposed a 'Road Miles' system to give people a free range of 3,000 miles - or 4,000 in rural areas - before the charge takes affect.

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