Road pricing announcement tomorrow? - RAC reaction

RAC head of roads policy Nicholas Lyes said: “The fact the Chancellor is giving serious thought to how drivers pay for road use in the future is potentially a landmark moment in how drivers are taxed. As more electric vehicles come on to our roads, revenue from fuel duty and vehicle excise duty will decline, so it’s inevitable a new system will have to be developed. Our research suggests drivers broadly support the principle of ‘the more you drive, the more tax you should pay’, with more than a third (36%) saying a ‘pay per mile’ system would be fairer than the current regime – although three-quarters (75%) are concerned the Government might use such a system as a way of increasing the amount they are taxed. 

“Whatever any new taxation system looks like the most important thing is that it’s simple, transparent and fair to drivers of both conventional and electric vehicles. It’s also essential that a new system replaces rather than runs alongside existing taxation regime. Ministers should additionally consider ringfencing a sizeable proportion of revenues raised from a new scheme for reinvestment into our road and transport network.”