The government is expected to scrap tax discs when George Osborne announces the Autumn Statement  today (December 5th).

Doing so will save businesses around £7 million through administration costs.

Instead, drivers will to pay Vehicle Excise Duty (VED) via an electronic register, introducing an option for monthly direct debit payments.

A spokesperson for the Treasury said: "This is a visual symbol of how we are moving government into the modern age and making dealing with government more hassle free."

However, paying monthly will cost around five per cent more than making one contribution for the entire year. The current system allows VED to be paid in six or 12-month installments.

An online service has already been in action since April 2004 and, in October 2013, the Driver and Vehicle Licensing Agency found almost 60 per cent of all vehicles owners paid the tax, or declared their car as being off road, this way. At the time, it discovered 126 million discs were issued since the option was made available, being used 13 million times this tax year alone.