THE Government has officially ruled out the prospect of a new pay-per-mile road tax being included in October's Budget.
The Department for Transport said there were "no plans" for the controversial change after weeks of speculation.
Reports that the measure could be included in Rachel Reeves' Autumn Statement had prompted fears of Brits being left with "huge bills".
There was intense industry speculation after the policy was proposed by the influential advocacy group, the Campaign for Better Transport (CBT).
The CBT's report urged ministers to do away with traditional road tax, which is based on your car's emissions rating, in favour of a per-mile tax.
While there was debate over how high the rate should be set, some reports even suggested it could go as high as 15p per mile.
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That would have seen some drivers paying an extra £190 annually just to get on the roads.
Speaking at the time, Sylvia Barrett, the CBT's policy director, said: “The new chancellor faces a looming black hole.
"She can avoid it, in a way which is fair and which garners broad public support.
"But she should start now, as this issue will only get more pressing.
"It should be cheaper to drive a zero-emission vehicle than a more polluting vehicle, but it’s only fair that these drivers should pay a share, and a pay-as-you-drive model can achieve this."
The scheme also received backing from AA president Edmund King, who said that "the time is right" for it to be introduced, although with the caveat that it shouldn't cost drivers more than under the current tax system.
However, the Department for Transport has now scotched the reports of any imminent announcement.
A Government spokesperson told SunMotors: "We have no plans to introduce road pricing.
"We are committed to supporting our automotive sector as we transition to electric vehicles in order to meet our legally binding climate targets."
It comes after former face of Top Gear Quentin Willson explained how the proposed pay-per-mile tax would be unenforceable and a "political grenade" for Labour in his debut Sun column.