Organisation: Transport Committee
Date of Publication: February 2022
Uploaded to Knowledge Centre: 8 February 2022
This report recommends a new motoring tax – in the light of the increasing popularity of electric vehicles – but says any system must not undermine progress towards targets on increased active travel and public transport usage.
In the report, the Transport Committee recommends the introduction of a road pricing system based on miles travelled and vehicle type.
This would enable the Government to maintain the existing link between motoring taxation and road usage – which could come under threat because neither fuel duty nor vehicle excise duty are currently levied on electric vehicles.
The report estimates that without reform, policies to deliver net zero emissions by 2050 will result in zero revenue for the Government from motoring taxation – leading to a potential loss of £35 billion to the Exchequer.
This would impact on roads funding, as well as funding for other areas such as schools and hospitals.
The report says drivers of electric vehicles should pay to maintain and use the roads which they drive on, as is currently the case for petrol and diesel drivers.
However, the Committee also stresses that incentives for motorists to purchase vehicles with cleaner emissions must remain.
Download the report from the Parliament UK website:
https://publications.parliament.uk/pa/cm5802/cmselect/cmtrans/789/report.html