A motoring expert has claimed London Mayor Sadiq Khan is set to introduce a radical new tax system which would have charged motorists for every mile they drive in the capital.

While the Labor government said it had no plans to introduce a nationwide pay-per-mile system ahead of its first budget last month, the source says Transport for London had already planned to implemented a similar system to improve air quality.

Addressing the London Assembly in September 2024, Mr Khan reassured drivers that he had no plans to introduce a pay-per-mile system in London.

He explained: “I want to be very clear. A pay-per-mile system is not on the table and is not on my agenda. I will not move the target on ULEZ emissions standards.

“Londoners can be confident when they buy ULEZ compliant vehicles that this will remain the case. The decision to extend the ULEZ to the whole of London was a difficult but necessary decision to save lives, protect children’s lungs and reduce the risk of developing asthma, dementia and other health problems.

Currently, road tax is initially determined by the amount of carbon dioxide produced by a vehicle, before moving to a flat rate for vehicles over 12 months old, which currently stands at £190.

However, under a per-kilometre car tax system, drivers would face an amount based on their total mileage.

Supporters of the project say a pay-per-mile system would encourage greener modes of transportation for shorter journeys, while others argue it would unfairly penalize those in more rural areas who rely on a private vehicle for stay mobile.

According to a report by London Centric, Sadiq Khan had planned to introduce a pay-per-mile system in London until the end of 2023 under the code name Project Gladys.

The organization says Transport for London invested millions of pounds in the project before it was abandoned in the run-up to the council elections, in which the opposition accused Mr Khan of creating a “war on motorists”.

Jim Waterson, editor of London Centric, wrote: “The pay-per-mile system, known as Next Generation Charging but internally named ‘Project Gladys’, was due to be introduced in September 2026, as a flagship policy of the mayor’s third and final term. In highly confidential internal documents seen by London Centric, TfL’s own modeling sets out how the move would lead to a collapse in the number of cars on the roads. »

He added: “London Centric understands that until the end of last year, with the support of the Mayor, TfL was continuing to develop the plan, having already invested millions of pounds into the project and the technology required.”

However, with the project apparently no longer in development, it is believed that Transport for London may have to find other ways to achieve the Mayor’s ambitious plan to reach net zero emissions by 2030.

Currently, London imposes a number of restrictions on its motorists, the most notable being the Ultra-Low Emission Zone (ULEZ) which spans the entire region.

Rolled out in stages between 2019 and 2023, London’s ULEZ charges motorists £12.50 per day if they are not in a compliant vehicle, such as a petrol model manufactured before 2004 or a diesel before 2015.

However, the capital also has a congestion charge zone, which requires owners of almost all cars to pay £15 per day to enter.