Motorists will “inevitably” end up paying per mile to drive on Britain’s roads as the switch to electric cars reduces fuel taxes, the Government’s infrastructure tsar has said. The Telegraph has more.
Sir John Armitt, the Chairman of the National Infrastructure Commission (NIC), said the Government had to consider new ways of funding Britain’s critical infrastructure such as motorways, as the Treasury faces the loss of nearly £30bn in fuel duty receipts.
Different versions of a pay-per-mile system could be considered such as schemes that charge more at busier times, he said, or a privately-financed toll motorway model similar to the one used in France.
Sir John added: “Politically, it’s a very difficult issue. Many people will say road pricing is inevitable.
“Personally, I don’t see why it should be any different to anything else. We pay for all our other infrastructure services as we use them.
“At the extreme… you could pay a different rate, per time of day, per type of road you were driving on, anywhere in the country and you just get a bill because it would all be monitored remotely.
“At the end of the day, it’s the public who pay. We pay either through our taxation, or we pay at the point of use or our pensions are used to invest.”
Fuel duty brings in £25bn for the Treasury per year – equivalent to almost half of Britain’s defence budget. But consultants at PwC have warned the Government stands to lose £9bn of this by 2030, when one in four vehicles on the road is expected to be electric.
A pay-per-mile road tax is one of the potential solutions officials have previously suggested to replace the loss of receipts. The idea has been backed by think tanks and environment groups, who argued that a flat per-mile charge could be easily metered through annual MOT checks or digitally using electric car hardware or fitted black boxes.
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