Motorists have dodged a massive £1,050 car tax rise with Rachel Reeves shelving pay-per-mile plans in the Autumn Budget.

The Chancellor didn’t mention a pay-per-mile charge to replace Vehicle Excise Duty and fuel duty charges in her statement.

There was widespread speculation a fee for petrol, diesel and electric cars was on the horizon with infrastructure tsar Sir John Armitt even suggesting it was “inevitable” in the run-up to the big day.

However, the Government had cooled on the idea in…