Drivers face being priced off the roads by new tolls that could spring up across the country under Labour, officials have admitted.

Ministers are planning to hand sweeping powers to private firms who stump up the cash for road building and maintenance projects.

Under proposed laws tabled last month, firms would effectively become the new highway authorities and be free to clobber drivers with crippling new tolls and penalties.

But the Government’s own impact assessment has warned motorists face ‘perverse’ and ‘inflated’ toll charges as firms may look to ‘exploit’ their ‘monopoly position’ at Dartford Crossing-style pinch points on roads, bridges and tunnels across Britain.

Published today, it stated: ‘As a result, there is a risk that charges could be higher… than those that might be set under a public delivery model.’

And it warned that regulator the Office of Rail and Road (ORR) ‘may lack sufficient capability to regulate’ schemes.

Suggesting some drivers face being priced off the roads by punitive charges amid a wider hit to the economy, it added: ‘It could affect the affordability of the scheme for users, and could affect wider economic outcomes.’

More toll roads like the Dartford Crossing could spring up across the country under the tabled legislation, but they would be run by private firms rather than the public sector 

The Dartford Crossing is frequently accused of being a ‘cash cow’ because tolls have continued decades after the original construction costs were fully repaid 

In a letter to MPs, Transport Secretary Heidi Alexander said the new funding model ‘has been successfully used in other sectors such as energy and aviation’

Critics say drivers already fork out £34billion in Fuel Duty and Vehicle Excise Duty (road tax) and shouldn’t face further charges.

Under the proposals, firms could start charging tolls on roads which they upgraded as well as newly built schemes, meaning motorists face charges for using highways they currently drive on for free.

While supporters argue it could unlock investment to get roads built or upgraded that the public purse can’t afford, critics say it threatens to create a ‘wild west’ patchwork of charges across the country.

It comes amid a blizzard of ‘anti-car’ measures since Labour came to power, including the rise of 20mph zones, which have sparked a surge in speeding tickets.

Shadow transport secretary Richard Holden blasted: ‘Labour’s clearly botched plans show their repeated claims that they’re on the side of motorists are nothing more than towering tubs of tripe.

‘What could be clearer evidence of Labour’s war on motorists than trying to set up a toll-system that they know the regulator is incapable of regulating and could easily lead to perverse outcomes and inflated tolls.’

As revealed by the Daily Mail last month, the latest measures were unveiled in the Highways (Financing) Bill.

The Bill would create a new regime under which private firms granted a licence after building or upgrading roads would be allowed to introduce new tolls to recoup their costs.

The overhaul would apply to A roads and motorways and be monitored by the ORR regulator in a bid to ensure tolls do not become excessive.

But today’s impact assessment warned of a ‘risk of higher road user charges’, adding that private firms ‘typically have better information than the regulator about the costs required to deliver and operate’ schemes.

It said that this can create ‘capital expenditure bias’ and ‘a perverse incentive for regulated companies to inflate costs, knowing that they will be recoverable through user charges’.

Shadow transport secretary Richard Holden said Labour’s overhaul was ‘clearly botched’ and proved ‘their repeated claims that they’re on the side of motorists are nothing more than towering tubs of tripe’

The Dartford Crossing toll stretch is a major artery which connects Essex with Kent via a bridge and two tunnels under the Thames, with drivers being charged a toll for each journey 

It added that firms ‘may be able to exploit [their] monopoly position, which could lead to user charges being set above efficient levels… This could reduce value for money for users.’

While it said the overhaul could have a positive effect by ensuring roads are built quicker, it said it was ‘uncertain whether higher charges would materialise in practice.’ 

Since Labour won the 2024 election, it has also announced a pay-per-mile levy for electric and hybrid vehicles and is planning a fuel duty raid in the New Year which would push up pump prices even further after they spiralled following the Iran war.

In July, the Daily Mail revealed how parking tickets could more than double – from a £70 cap to £160 – outside of London under proposals being considered. Many councils have also hiked parking charges to boost their coffers, with some even considering a tax on workplace parking spaces.

The Dartford Crossing, a major artery which connects Essex with Kent via a bridge and two tunnels under the Thames, is frequently accused of being a ‘cash cow’ because tolls have continued decades after the original construction costs were fully repaid.

But it is owned by the Government and there are fears private firms could profiteer.

A Department for Transport spokesman said: ‘Where tolls might be needed on new roads, we’re protecting drivers to make sure they’re not paying high costs to get from A to B. The regulator has powers to make sure any tolls are fair, balanced and transparent.’