09.30, Wednesday 20 October 2021
As the share of electric vehicles in new car sales grows,
government revenues from fuel duty and Vehicle Excise Duty will
decline. Based on unchanged fuel duty and VED policies, the
Office for Budget Responsibility’s July report estimated a review
loss of 1.5 per cent of GDP, equivalent to £31 billion in today’s
terms, once the entire vehicle stock has been replaced.
Ending the sale of new petrol and diesel cars and vans by 2030 is
part of the Government’s Ten Point Plan for a Green Industrial
Revolution, announced in November 2020. All vehicles are expected
to be 100% zero emissions from 2035. In July, the Transport
Committee urged Government to create a clear policy framework to
ensure industry can deliver the vehicles and charging
infrastructure required to deliver the Government’s ambitions for
zero emission vehicles.
As the Treasury looks at a fiscal black hole, one potential
solution is a new system of road pricing. Several examples
of road pricing models already exist in the UK such as individual
toll roads to zonal charging; other models could include flat
rates per mile, geographic or toll-based charging, time-based
rates and dynamic rates.
Ahead of the Autumn Budget on October 27, the Transport Committee
will consider:
- The case for and against road pricing, and the policy
objectives it might be used to achieve;
- Possible pricing models and how revenues from these might be
spent; and
- How any system of road pricing could be implemented,
considering what we can learn from other country’s systems.
Witnesses:
Panel 1 from 09.30:
- Duncan Buchanan, Policy Director (England & Wales), Road
Haulage Association
- Steve Gooding, Director, RAC Foundation
- Toby Poston, Director of External Affairs, British Vehicle
Rental and Leasing Association
- Dr Nina Skorupska CBE, Chief Executive, Renewable Energy
Association
Panel 2, from 10.20:
- Alistair Hunter, Highways Business leader, Arup
- Professor Phillip Goodwin, Senior Fellow, Foundation for
Integrated Transport
- John Siraut, Director of Economics, Jacobs
Panel 3, at 11.10:
- Mike Williams, Director for Business and International Tax,
HM Treasury
