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A new pay-per-mile car tax would see millions of drivers face a £250 annual bill. The move could add around £250 a year to the average electric driver’s costs, after the Labour Party government's Autumn Budget.

Hybrid cars will also face a new, but lower, charge. The Treasury will reportedly make the case that the new tax is needed to cover falling fuel duty revenue as more and more vehicle owners go green.

The new element is being described as 'VED+' and being framed as a way to get drivers of green cars to pay more each year, according to the Telegraph.

READ MORE Drivers warned car tax perk will be scrapped for 'first time' ever in UK

Edmund King, AA president, said: "Drivers are worried that they will be a prime target for increased motoring taxation as the Chancellor

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