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A new pay-per-mile tax system is reportedly being considered by the Government in what would be the biggest tax shake-up in decades.

Drivers would be charged based on how much they drive, rather than the current fuel duty system.

It would aim to create a "fair" system but critics argue it could do the opposite by punishing those who rely on their cars more, such as those living in rural areas.

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There have been suggestions motorists could be charged as much as 15p per mile, with an announcement potentially coming at November's Budget.

The average driver covering 7,000 miles annually would face a £1,050 outlay i

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