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Drivers of certain cars face a new pay-per-mile tax system, according to reports.

Chancellor Rachel Reeves is said to be considering the radical shake-up of motoring tax, with a potential announcement at the Budget later this month.

And it would mean millions of drivers being charged based on how far they travel.

READ MORE: Drivers who do 10,000 miles a year 'to be hit with new £300 charge'

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The new system would target owners of electric vehicles (EVs) as a way to address declining revenue from fuel duty with more Brits switching to electric by the year.

The rate could reportedly be set at 3p per mile.

That would work out to a £300 annual charge for someone doing 10,000 miles a y

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