You see, EVs may be helping to save the planet but they're doing little to balance the books of UK PLC since, as is well known, they attract neither road tax nor fuel duty. As 2030 approaches, this perk will become a luxury the country can no longer afford.
This was the message from the House of Commons Transport Select Committee that met recently to discuss the issue and the possible ways forward. One solution, the MPs suggested, is road pricing. Sound familiar? In fact, UK policymakers first raised it in the Smeed Report of 1964 when they recommended congestion pricing on UK roads. It was a political hot potato that governments have kept under lock and key – until now.
What's the problem?
The government expects that by 2040, when electric vehicles dominate the UK car parc, very little tax will be raised from motoring. However, the government doesn't want to discourage the take-up of EVs so, rather than simply imposing a tax on them to restore the public finances, the Transport Select Committee (TSC) has suggested introducing road pricing as a means of generating revenue.
What is road pricing?
It uses telematics technology to charge motorists by distance driven, factoring in vehicle size and type. It also serves another purpose of managing the costs of motoring such as pollution, emissions and congestion. The TSC says that to be seen as fair and acceptable by the public, road pricing 'must be revenue neutral, with most motorists paying the same or less than they do currently.' It adds that it hasn't seen a viable alternative to a road pricing system based on telematics.
So road pricing is inevitable?
The TSC says that much of the technology required is already available and that 'introducing road pricing is an opportunity for the UK to be a world leader.' It recommends the Department for Transport and the Treasury appoint a body of experts to identify an alternative road charging mechanism by the end of the year.
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