We already have numberplate recognition and its essentially on a national scale, just not completely linked up from jurisdiction to jurisdiction. License plate scanners are becoming rampant in some areas, they apparently have never been successfully blocked, all for reasons you listed and also as "license plates and vehicles don't have rights". The favored method for abusing a person's rights is to target their things
Once we have it, it would also be of great utility to investigate kidnappings and terrorism. And serious and violent crime. And vehicle thefts. And drug trafficking. And driving without a license, insurance, or tax. And lying about your address to get your kid into a good school.
And who could object, when we're already storing proof of what really happened, to that proof being used to vindicate the innocent in a divorce hearing, or an employment tribunal?
As faithful believers in the free market, what better way to fight congestion and encourage the use of public transport than a tax that only applies on congested roads, and only at peak hours of the day? What luck, the infrastructure is already in place.
No doubt the system will be expensive to design and operate. It would help defray the costs if we release citizens' travel records to some carefully vetted partners, such as academic researchers, urban planning consultants, insurance companies, marketing companies and credit rating agencies.