The only way that I could see this work is that VED becomes a retrospective tax bill that gets sent to you after your MOT.
Your MOT is up June1st. So you drive in for your MOT on june 1st 2023. Mileage is 13,000 miles. Wait 12 months, car comes in for MOT due June1st 2024. Mileage is now 18,000 miles so that means in the last month you've driven 6,000 miles.
Government then has sliding scale of mileage charges, and a multiplier based upon your tailpipe emissions whereby electrics and hybrids still pay - but get a reduction. This would be a great time to swap the current system and make diesel more expensive than petrol in a push to right previous wrongs and get people into vehicles that have cleaner emissions - not just less co2. Would no doubt make tax more expensive for some - but would offset by a reduction for those who don't use the car very much and could end up paying very little difference. This makes sense in the long run - yes you drive a vehicle with nasty nox emissions - but if you don't drive it very much then you're not actually polluting that much. If you do drive it a lot - you pollute more and thus pay more. EV drivers now have to pay tax to account for their fare share of the impact on the roads and running them and the overall government finances, and crucially this still works in a 100% EV future which the current system doesn't. The mileage offset for EV / hybrid can be tweaked in future as part of the annual statement yo raise / lower taxes as required.
This is then sent to you as a tax bill which you can pay as usual - either up front 100% there and then, or spread over direct debit for the next year until you get your next one.
No GPS trackers, no sim cards, no GPS blockers etc.. the only thing that defeats this system is rolling back a cars mileage. I believe this is already illegal, but if not the legislation that brings this in would be a perfect time to make rolling back or messing with your milage on the car a specific legal offense.
Only change is that VED goes from being a fixed yearly tax to a retrospective one for last years usage. Any other system that revolves around actually phsyically monitoring your milage (GPS trackers, cameras on the road, government monitoring your electricity usage at home, government registration of EV chargers and rewnewable energcy etc..) Are all stupid
Only other alternative I can see working is the suggestion above about just simply charging by weight and removing fuel from the equation. Downside to that is the government likes to use vehicle tax to push people in certain directions. They did it to push us to dielsel, they're doing it now to push us to EV. You base it on weight and now there's no difference between the cleanest of brand new EVs and the dirtiest of old smoky diesels. Which I can bet the environmentalists won't like.