MP’s call for motoring taxation reforms in the wake of £35 billion “black hole”


MP’s call for motoring taxation reforms in the wake of £35 billion “black hole” expected to strike after 2030 ban of new petrol and diesel vehicles comes into effect.

With the imminent reduction in petrol and diesel vehicles on the roads, the Transport Select Committee has stated that “policies [set] to deliver net-zero emissions by 2050 are likely to result in zero revenue for the government from motoring taxation by 2040”.

Shockingly, the funds raised from fuel and Vehicle Excise Duty collectively only makes up “4% of the entire tax take”, according to Huw Merriman, the Conservative chair for the Transport Select Committee. But the loss of that income would have an incredible impact on the UK as we know it.

Only £7bn of the £35bn is used to improve and fix the country’s road networks. The rest is spent on schools, hospitals and other essential services.

“Road pricing” is a concept that has been on the table for a number of years. Rather than pay the current levies, drivers would be required to pay for their time on the road, the distance travelled and vehicle type.

Arguably, this would be a much fairer and more sustainable way to ease congestion, fund better transport and make all motorists cover the costs.

But with the capital’s Ultra Low Emission Zone (ULEZ) and Clean Air Zones (CAZ) popping up across the country, something needs to give somewhere to make driving more affordable across the board.

What’s more, the technology required to monitor road usage is already in place, with number plate recognition cameras dotted throughout the city, so the switch wouldn’t be a far stretch. The Mayor of London, Sadiq Khan, has already weighed in on the situation and backs the idea in principle.

But what about public opinion? Car finance specialist Carvine polled 2,500 of their customers to determine their thoughts on the £35 billion fuel duty “black hole.” 86% concluded that they wouldn’t want to pay an additional tax after making the switch to an electric vehicle, whereas 14% said they were willing to chip in to help with the fuel crisis.

Alex Thomas, a spokesperson for Carvine, said, “Once again motorists are having to foot the bill for the government’s holey net-zero plans. It’s no surprise, the majority of electric car owners don’t want to pay a tax they thought they were except from.”

With growing concerns from MPs and car owners alike, the future of motoring is looking more uncertain than ever.