All cars could have to be fitted with tracking devices due to car tax updates

Martin Lewis gives money-saving advice on VED car tax

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Drivers in the UK may soon have to have monitoring devices fitted to their cars if a planned car tax shake up comes to fruition. The development stems from a report drawn up by the Transport Select Committee and presented to the Government on how current fuel duty and Vehicle excise duty can be replaced.

One of the recommendations in the report suggests that cars have ‘telematics devices’ fitted in order to monitor how far a car has travelled and the type of car it is.

It states that ministers must “examine the role telematics technology can play”.

The report added that the device would allow “real-time data recorded and transferred to a pricing mechanism”.

But it added: “Those options should be revenue neutral and not cause drivers, as a whole, to pay more than they do currently.”

The report continued: “If motoring taxation is linked to road usage, the Committee has not seen a viable alternative to a road pricing system based on telematics.

“The Government’s preferred options should be submitted to an arm’s-length body for evaluation.”

It would signal a move toward the kind of ‘pay-per-mile’ driving recently mooted by London Mayor Sadiq Khan.

He is looking for ways to push people toward using public transport in the nation’s capital in order to cut emissions.

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The committee’s report also touched on those issues stating: “The Government must assess the potential effect of telematic technology on changing drivers’ behaviour and delivering its wider policies on air quality, congestion, public transport and public health.”

And it said that further research would have to be done on how the moves would affect heavy road users such as lorry drivers.

It added: “The Government must assess the potential effect of a road pricing mechanism based on telematic technology on high-mileage drivers, such as road hauliers and those in rural communities, and on those least able to adapt to increased motoring costs.”

The Government has two months to respond to the recommendations.

Recently some start-up insurance companies have started to offer premiums on how many miles drivers cover, only charging them if their vehicle is moving.

They use trackers to monitor distance covered, adding charges if the owner goes over the miles they stated when taking out the policy.

GPS trackers have also been used for some time to help find high-value stolen cars.

Comment below if you would be happy to have a tracker fitted to your car and pay to drive by the mile.

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