Chancellor Rachel Reeves is expected to introduce a self-assessed 3p per mile fee for electric vehicle owners in her upcoming Budget.

However, a briefing note from Enlighten Scotland warns that this is “the wrong solution” and “fails to recognise the broader problems”.

The think tank says the current system is “outdated and unfair” and suggests driving on different roads should incur different costs based on factors including the time of day and congestion levels.

Enlighten’s research director Alison Payne said: “Rachel Reeves is right to identify that the current system of charging motorists is ineffective. It fails to recognise the shift to electric vehicles, and arguably punishes those who cannot afford to change car frequently.

“However her solution fails to recognise the broader problems. She should abandon it for now, and instead create a system of pay-as-you-drive road pricing.

“By scrapping all current motoring taxes and charging drivers based on where they drive and when they drive, we can create a system which is fair and sustainable, and which will encourage people to think carefully about their transport choices.”