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17 Nov 2020

Poll: UK road pricing – yes or no?

In this week's poll we're asking whether readers think a "pay by the mile" model should be used to generate the tax revenues that will be lost through the switch to zero carbon motoring.

The UK government is reported to be considering road pricing to make up for an estimated £40bn tax shortfall resulting from the proposed 2030 ban on the sale of new petrol and diesel vehicles.

Expected to be announced this week, the fast-tracking of the ban on sales of fossil-fuelled vehicles from the original date of 2035 has been hailed by some as a sign of the government’s strengthening commitment to its net-zero strategy, and a statement of intent that it’s serious about supporting the low carbon vehicle sector.

However, with taxes on motoring currently raising around £40bn per year, and the bulk of this revenue linked to fuel duties, it’s feared that without significant changes to the tax system the speeded up transition could leave a huge hole in public finances.

The government is said to be considering a number of options for addressing this, including - perhaps most controversially - the introduction of a national road-pricing scheme that would use either road tolls or a “pay as you drive” concept to replace the lost tax revenue.

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