Case for road pricing grows and gains support of council bosses

01/06/2023
Chris Ames

Another think tank has called for a per mile ‘Road Duty’ for electric vehicles to compensate for lower revenues from motoring taxes.

A new report from the Resolution Foundation argues that the UK ‘must and can’ urgently reform what it said are £32bn of road taxes so that the ‘welcome transition’ to EVs does not put pressure on the public finances and road congestion.

The analysis won support from the Local Government Association, which said a 'workable alternative to fuel duty' was urgently required.

The report, Where the rubber hits the road, funded by the Nuffield Foundation says the UK’s transition away from fossil-fuel-powered cars is proceeding faster than many experts predicted, with EVs accounting for one in seven new cars bought last year, and ‘creating a growing fiscal hole’.

It calculates that the transition is set to drive a £10bn a year revenue shortfall by the early 2030s, adding that government policy needs to play a greater role in tackling congetstion.

The authors said that arguments for continuing with far lower rates of vehicle taxation for EVs to encourage take-up are misplaced, with regulations banning the sale of non-EVs by 2030, and lower running costs generally already playing that role.

They add that higher-income families are more likely to buy new electric cars and that maintaining big tax breaks for EVs risks disadvantaging people on lower incomes.

The report calls for a new ‘Road Duty’ for EVs at around 6p per mile (plus VAT), collected using GPS data that new EVs are already built with and paid via monthly direct debits.

This would be enough to offset the fall in Fuel Duty revenues over the coming decade, while maintaining incentives to switch as EVs remain 20% cheaper to run, it says. 

In addition, the ability to implement congestion charging via this system could make it far easier to tackle congestion in large towns and cities.

The think tank also joined calls for the 20% VAT rate on electricity from public charging points to be reduced to the 5% level that applies to electricity used for home charging.

Senior economist Jonny Marshall said: ‘The switch from fossil-fuel-powered cars to EVs is a key part of Britain’s net zero transition, and it’s happening quicker than most people expected. This is good news for the planet and motorists as EVs are cleaner and cheaper to run.

‘Our tax system needs to keep pace with the Electric Vehicle transition, in a way that protects low- and middle-income households.’

Last week. free market think tank the Centre for Policy Studies mooted a ‘pay as you drive’ scheme as the only form of motoring taxation for zero emission vehicles.

Cllr Linda Taylor, transport spokesperson for the Local Government Association said: 'This report rightly highlights the urgency that is required to develop a workable alternative to fuel duty for electric vehicles.

'It is vital that we avoid a huge increase in traffic levels on our local roads, which according to official statistics, could be 54% higher by 2060.

'It is important that the Government takes steps to mitigate against this and help ensure that public transport and active travel remain attractive and affordable options.'

Latest Issue

latest magazine issue

 

ALSO INSIDE:

  • Exclusive: Smart Motorways
  • Are you AI protected?
  • Traffex Parkex Evex Cold Comfort
View the latest issue


Highways jobs

Senior Engineer - Highways and Drainage

£40,221 - £44,428 + 12% Attraction + Retention Payment equating to actual pay £45,047 - 49,759
This is an exciting opportunity to join us as a Senior Engineer. Lincolnshire
Recruiter: Lincolnshire County Council

Service Manager - Highways (Asset and Traffic)

£48,474 to £51,515
A vacancy has become available for a Service Manager to join and manage our successful Highways Assets and Traffic team. Torbay, Devon
Recruiter: SWISCo

Traffic Management Technician - WMF1090e

Salary £26,421 - £27.334
This is a role for Traffic Management Technician to be based in the Eden area. Penrith, Cumbria
Recruiter: Westmorland and Furness Council

Assistant Arboricultural Consultant

£26100 - £30706 per annum + + 26 Days Leave & Defined Benefit Pension
Assistant Arboricultural ConsultantPermanent, Full TimeUp to £30,706 per annumLocation
Recruiter: Essex County Council

Heavy Goods Vehicle Mechanic

£27,507 - £29,418
You will need to be suitably experienced, hold a minimum of an NVQ Level 2 (or equivalent). Derby
Recruiter: Derbyshire County Council

Principal Engineer - Highways Development Management

£48,378 - £51,571
You will play a lead role on all major highway development proposals across West Northampton. One Angel Square, Northampton
Recruiter: West Northamptonshire Council

Transport Planning & Data Manager - CMB1061e

£62,273 - £65,017
Cumberland Council is a dynamic and forward-thinking authority dedicated to enhancing public services Cumbria
Recruiter: Cumberland Council

Transport Planner (Area Travel Plans) OCC616326

£39,186 - £42,403 per annum
It doesn’t matter where you’ve been, or where you’re going, it’s about the journey. Oxfordshire
Recruiter: Oxfordshire County Council

2x Technical Lead (Area Travel Plans) OCC616320

£43,421 - £46,464 per annum
It doesn’t matter where you’ve been, or where you’re going, it’s about the journey. Oxfordshire
Recruiter: Oxfordshire County Council

Assistant Transport Planner OCC616317

£29,269 - £32,076 per annum
It doesn’t matter where you’ve been, or where you’re going, it’s about the journey. Oxfordshire
Recruiter: Oxfordshire County Council

Principal Engineer - Highways Development Management

£48,378 - £51,571
We are looking for an experienced and talented professional to join West Northampton Council as our Highways Development Principal Engineer. One Angel Square, Northampton
Recruiter: West Northamptonshire Council

Structural Highway Maintenance – Highway Engineer

£36,648 - £39,186 per annum
An exciting opportunity has arisen for a driven and self-motivated engineer to join our Structural Highway Maintenance Team. Warwickshire / Countywide
Recruiter: Warwickshire County Council

Highway Asset and Development Manager

Grade N Scp 50 £59,031 to Scp 53 £62,076, plus car allowance
To be responsible for leading, developing and delivering an effective, efficient and safe Highway Asset Management Service Bolton, Greater Manchester
Recruiter: Bolton Council

Highways Engineer

£37,336 - £39,186
Wiltshire Highways – Enhancing Lives, Building Communities Wiltshire
Recruiter: Wiltshire Council

Engineer

£40,221 - £51,515
As part of a friendly and enthusiastic team, you will play an important role in designing innovative urban transport and public realm projects 100 Temple Street Redcliff Bristol BS1 6AN
Recruiter: Bristol City Council

UGO Bus Driver

Up to £23344 per annum
UGO Bus DriverPermanent, Full Time and Part TimeUp to £23,344 per annum (FTE)Location
Recruiter: Essex County Council

Parking Finance and Debt Officer RBKC616576

£37,575 - £41,286 per annum
In Kensington and Chelsea, we put local people and local businesses at the heart of decision-making Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

Street Services Officer RBKC616598

£31,716 - £35,862 per annum
Keeping our streets safe and our road-users well-informed Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

Highways Network Engineer WMF1059e

£42,403 - £43,421
We are looking for strong communicators, as you will provide technical advice and guidance to colleagues Kendal, Cumbria
Recruiter: Westmorland and Furness Council

Workshop LV Technician MOT Tester

£29,777 - £32,076 (pay award pending)
The RMBC Workshop Maintenance team has an excellent opportunity for a qualified Workshop LV Technician/MOT Tester Rotherham, South Yorkshire
Recruiter: Rotherham Metropolitan Borough Council

Highways Presents

 


Latest Video