Rachel Reeves issued warning over drivers 'clocking' to beat pay per mile tax

Rachel Reeves has been warned that UK motorists could turn to clocking their odometers in a desperate bid to beat the Chancellor's new pay-per-mile car tax fee. Dan Reavley, Head of Motor Finance at Anglo Scottish Asset Finance, has explained that the Government needed to quickly come up with solutions to prevent electric car owners from taking advantage.

Clocking a car artificially reduces a car's visible mileage, making it appear as though vehicles have travelled a lot less than they actually have. Clocking a car is against the rules, but Dan has warned motorists "feeling the squeeze" may adopt the desperate tactic in a blow to the scheme.

Speaking exclusively to the Express, Dan said: "We need more clarity on how electric drivers will report their mileage, given that the tax will be paid on a per-mile basis. The plan is for mileage to be reported from your car's odometer at its annual MOT, as it is already.

"But, now given that many Brits will already be feeling the squeeze come 2028, following the Personal Tax Threshold Freeze, the Government need to come up with a solution to prevent drivers from 'clocking' their odometers in order to reduce the visible mileage."

Ms Reeves confirmed her intention to launch a 3p pay-per-mile charge for battery electric vehicles from 2028, with plug-in hybrids charged at the cheaper 1.5p per mile rate. Under current proposals. Mileage readouts will be taken at garages when motorists attend their annual MOT test.

The Treasury is already aware of the risks associated with clocking, specifically mentioning the issue in their latest consultation document regarding their Electric Vehicle Excise Duty (eVED) charge. The Treasury said that estimates suggest around 2.3% of UK vehicles may show signs of clocking.

The Government said they do "recognise that the introduction of eVED may increase the likelihood of motorists choosing to clock their vehicles", or allowing the odometer to be inoperative. The Treasury explained they were "considering further options to mitigate against odometer tampering", including the possibility of "strengthening enforcement.

However, Dan added: "The new tax on electric vehicles feels fair to a certain extent. Electric vehicles use the road too and are just as responsible for its upkeep as traditional fuel-powered cars.

"There's still an incentive for people to buy electric vehicles, with the new tax thought to be roughly half of what petrol car drivers will pay each year."