Commenting on the Transport Select Committee’s report on roads
pricing, Edmund King, AA president, said: “It was been obvious
for some time that the transition to zero emission vehicles will
mean the Treasury will need to recoup the £35 billion currently
taken in fuel duty and VED. Following the March 2020 Budget, the
Treasury launched a consultation which covered the future of
Vehicle Excise Duty with direct reference to electric vehicles,
yet it still has not published its findings*.
“Whilst our polls show many drivers accept the principle of ‘’pay
as you go’, they don’t trust politicians to deliver a fair
system. Hence we agree with the committee that any new
taxation proposals should be put forward by a body at arm’s
length to Government and any new scheme should be revenue neutral
and we believe the charges should be set independently. The
committee also says any new system should totally replace fuel
duty and VED whereas we believe a transition period would be
required to still encourage the take-up of EVs.
“A couple of years ago in a short-listed joint-submission to the
Wolfson Economics Prize, with economist, Deirdre King, we
suggested a ‘Road Miles’ ** system to be gradually introduced
whereby every driver gets an allowance of 3,000 free miles - one
third more for those in rural areas or with disabilities – and
thereafter a small charge per mile would be levied.
“Whatever system put forward must be equitable or it will
back-fire.”
ends
NOTES TO EDITORS
* https://www.gov.uk/government/publications/vehicle-excise-duty-call-for-evidence
** https://policyexchange.org.uk/wp-content/uploads/2017/07/Deirdre-and-Edmund-King-%E2%80%93-Road-Miles-Revised-Submission.pdf
