The electrification of the automotive industry means that the UK needs a pay-per-mile road charging system, according to a number of MPs…
MPs Want Pay-Per-Mile System
With the rapid rise of EVs, the government faces a serious predicament. It generates billions every year via fuel duty. So, what will it do when millions of vehicles stop using fuel? The leading candidate is, essentially, a road pricing system. This would see drivers charged on the basis of how often they drive and, potentially, which roads they use and when. MPs from the Transport Committee, whilst recognising the move may be unpopular, believe the time is right for the government to have ‘an honest conversation with the public’.
The Committee has also noted that no alternative, viable system has been proposed. Huw Merriman MP and chair of the Committee has emphasised the importance of the revenue that may be lost. Highlighting the £35 billion that may be lost to the treasury, he said “only £7bn of this goes back to the roads; schools and hospitals could be impacted if motorists don’t continue to pay”.
A Mixed-Reaction
Naturally, the reaction to the Transport Committees pitch has been mixed. Toby Poston, director of corporate affairs for the BVRLA, agrees with the road pricing concept. He said, “BVRLA members have set out their road pricing principles, and we are delighted that the Transport Select Committee agrees with so many of them, particularly the need to make any system revenue-neutral and think about the needs of essential road users”. He continued, “like the committee, we think the work should start now and the fleet sector is ready to help explore the technologies and policies that will deliver an efficient and effective road pricing system”.
Edmund King, AA president, has said that whilst drivers aren’t inherently opposed to the idea they don’t trust the government to implement it fairly. He said, “Whilst our polls show many drivers accept the principle of ‘pay-as-you-go’, they don’t trust politicians to deliver a fair system. Hence we agree with the committee that any new taxation proposals should be put forward by a body at arm’s length to Government and any new scheme should be revenue-neutral and we believe the charges should be set independently. The committee also says any new system should totally replace fuel duty and VED whereas we believe a transition period would be required to still encourage the take-up of EVs”.
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