MPs attempt to resurrect road-pricing plan

Transport select committee argues an alternative approach is needed to tackle public distrust in current road tax regime

By Tom Young

24 Jul 2009

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The government should introduce a "pay-as-you-drive" road-pricing scheme for volunteers instead of charging them vehicle excise duty and fuel taxes, according to an influential committee of MPs.

The scheme is necessary because people no longer trust the government's argument that a range of different road taxes is required, MPs said.

"The government has been inconsistent in the way that it has justified motoring taxes," the report states. "Fuel duty has been presented, at different times, as a tool to reduce carbon emissions, a source of general revenue, and a means to fund transport investment. We are concerned that motorists are mistrustful of the government regarding taxes."

The government has de-prioritised plans for a national road-charging scheme following a series of setbacks. Nearly two million people signed an online Downing Street petition condemning the concept two years ago, while residents in Manchester recently voted to reject proposals for a congestion charge scheme in the city.

Peter Roberts, chief executive of the Drivers' Alliance, and the creator of that petition said public opinion was opposed to any "pay-as-you-drive" measures.

"Drivers have shown time and again a clear rejection of "pay-as-you-go" motoring and it is pure folly for this report to suggest we spend billions of taxpayers' money on building a charging infrastructure and intrusive enforcement system," he said. "It is highly unlikely enough volunteers will come forward to repay the investment costs. What a dangerous risk to public finances."

But Professor Stephen Glaister of motorists' group RAC Foundation welcomed the recommendation.

"The problem is simple. Too many vehicles on too little road space and no clear explanation to drivers of exactly what they get in return for the £45bn or so they contribute to the Exchequer each year," he said. "We are pleased the committee agrees with us that there should be a shift from taxing car ownership towards charging for road use. Every other public utility is charged for on the basis of use and there is a strong argument for doing so when it comes to roads. To an extent, fuel duty already does this."

Glaister added that national road pricing – where pay-as-you-go charges are offset by reductions in vehicle tax and fuel duty – might become unavoidable to eradicate the growing menace of congestion.

Green groups have been largely supportive of road-pricing proposals, arguing that charging people based on how much they use their car will help curb carbon emissions while the ability to levy higher charges on the busiest roads should help tackle congestion.

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