Exempt electric cars owners ‘will have to pay road tax for the first time’

ELECTRIC car owners will reportedly have to pay road tax for the first time as part of “eye-watering” new Budget.

At present, emission-free cars and vans pay no vehicle excise duty but this is set to change on Thursday when the Budget is announced by Chancellor Jeremy Hunt.

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The decision comes as electric cars have become more popular and experts predict a £7 billion loss in road tax income.

But this controversial move is expected to spark outrage as it will likely discourage consumers from going green and making an environmentally conscious choice.

This comes after the Chancellor warned Brits about a “tough road ahead” and “eye watering” Budget decisions amid an estimated £54 billion hole in public finances, according to The Daily Mail.

The gaping hole has been caused by a mix of the pandemic, Putin’s war in Ukraine, the soaring cost of energy and Liz Truss’ disastrous mini budget.

Prime Minister Rishi Sunak has repeatedly warned that plugging the gap will require “difficult decisions”, including cuts to public spending and tax rises.

Earlier today terrifying new stats revealed the UK economy shrank by 0.2 per cent in the last three months and the Bank of England warned Britain is nearing a “very challenging” two-year recession.

Mr Hunt responded by saying it’s not “entirely unexpected news” but added the government must now “present a plan to the country to tackle the root cause of the issues we face.”

The Chancellor said next Thursday’s budget will be tailored to “protect the most vulnerable.”

However, Treasury sources revealed the Chancellor has had to “think the unthinkable” to balance the books.

Mr Hunt has already considered extending a freeze on income tax thresholds until 2028, which means those who earn over £50,000 a year could end up paying £3,659 more in tax overall.

The highest earners will also be affected as the £150,000 threshold at which the additional rate of income tax kicks in could be lowered and that rate of 45p in the pound even raised.

And millions could be hit with higher council tax bills as Mr Hunt weighs up scrapping a rule that forces local authorities to hold a referendum if they want to increase rates above 2.99 per cent.

In a move that will have major implications for businesses, the Chancellor is also set to freeze the threshold companies must start paying VAT at £85,000 turnover, rather than raising it with inflation.

After today, Mr Hunt and the PM are expected to hold a final few set of meetings early next week before Thursday’s major announcement.

This morning the Chancellor said: “There isn’t uncertainty about a basic choice we make as a country, which is whether we’re going to pay our way.

“And if we don’t give that certainty to the world, what we’ll see is higher interest rates, higher inflation, more instability, and more worries for families and businesses.

“And that’s why it’s so important to show the world that we are a country that pays our way.”