Drivers with these cars will have to pay £600 under new pay-per-mile car tax bands

Motorists have been warned they could be hit with charges of more than £190 under a pay-per-mile car tax band system proposed by the new Labour Party government. Rachel Reeves, the Chancellor, could introduce the pay-per-mile car tax as early as October in her Autumn Statement.

Andrew Jervis, CEO and founder of ClickMechanic, has previously cautioned that some drivers will end up paying MORE than the current Vehicle Excise Duty (VED) charge - so over £190. At present, hybrid cars receive a modest discount (£10), but if your vehicle had a list price exceeding £40,000 when it was first sold, you might also be liable for the 'premium car tax' fee.

This would add an extra £410 to the vehicle's annual VED costs, bringing the total to £600. According to data from the RAC's Fuel Watch scheme, the current average fuel retailer profit margin is around 13 pence for petrol and 15 pence for diesel - more than one and a half times the long-term average of eight pence.

It has been suggested that a pay-per-mile tax will no doubt be back on officials' agendas, Birmingham Live reports. AA Chairman, Edmund King, previously stated: "The time is right [for road pricing] because people are out there and they themselves see the benefits of walking and cycling and running".

King told Auto Express: "If in the future a system is introduced, it must have incentives for those dependent on their cars in rural areas, disabled drivers, and shift workers". He added, "The scheme should be overseen by an independent body and should not aim to raise more revenue than is currently raised from drivers."

The government's proposal to introduce pay-per-mile road pricing could see GPS trackers, Automatic Number Plate Recognition (ANPR) cameras, or smartphone apps monitoring every mile we drive. Privacy advocates are up in arms over what they call significant "privacy concerns" associated with the system.