More toll roads could be introduced under government considerations to recoup road tax, according to a new report.
The Times reports that the Treasury is concerned that, as electric cars become more popular and diesel and petrol cars are phased out, the government will face a shortfall in road tax, since lower-emission cars pay less - or sometimes zero - road tax. Since they also do not need to fill up with petrol or diesel, they do not pay fuel duty - leading to the consideration of road pricing.
A source told the paper: “It’s definitely being taken very seriously in Downing Street. The policy unit is giving it a thorough look and the problems with fuel duty now make it more urgent.”
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Paul Scully, the business minister, told Times Radio this morning that it could be an option in the long-term, but played down suggestions it would come in any time soon: “I think it needs to be really worked through. It’s not something I’d be keen on now. But if you’re looking at electric cars in ten years’ time, then obviously, if fuel duty starts to go by the wayside, the Treasury’s got to find something to replace that with. But I suspect [there will be] lots of debate before we get anywhere near that.”
He added: “I think it’s quite a culture change because there are certain people in rural areas where they are reliant on their cars, and so I think we’ve got to tread really carefully before we choke off one option of transportation where the public transport isn’t really there for them.”
Alternative suggestions include taxing electric cars more than is done at present or taxing people on how far they drive and how busy it is when they do so. The latter option was recommended by the Commons' cross-party transport committee last month.
The government has already announced plans to end the sale of new diesel and petrol cars by 2030. Hybrids will then be banned by 2035.
The only major toll road in the UK at present is the M6, near Birmingham, which charges between £3.60 and £7.10 for most cars, depending on the day and time of travel and how far along the M6 you go. The Severn Bridge used to charge £5.60 to enter Wales, though this fee has now been abolished.
Later this year, Bristol will become one of the many cities to introduce a clean air zone. This will charge drivers of older, more polluting cars £9 per day to enter the centre of town; most modern cars will, however, escape the charge.
