Chancellor Rachel Reeves has been urged by public transport charity, Campaign for Better Transport (CBT) to reform vehicle taxation or face a massive revenue gap.
CBT has written a letter to the Chancellor proposing that drivers of zero emission vehicles (ZEVs) should be changed depending on how far they travel, introducing a pay-per-mile scheme.
The public transport charity has warned that an estimated £5 billion a year from fuel duty will decline by 2033.
This would leave a £5 billion black hole if a new solution isn’t introduced say CBT.
Silviya Barrett of Campaign for Better Transport said: “The new Chancellor faces a looming black hole. She can avoid it, in a way which is fair, and which garners broad public support. But she should start now, as this issue will only get more pressing.”
“The easiest immediate solution, the letter says, would be a simple charge levied on zero emission vehicles (ZEVs) on a per-mile basis.
“Having an adequate transition period would enable industry to prepare. And exempting existing ZEV drivers would incentivise uptake before the implementation date.
“It should be cheaper to drive a zero-emission vehicle than a more polluting vehicle, but it’s only fair that these drivers should pay a share, and a pay-as-you-drive model can achieve this.”
The Chartered Institute of Logistics and Transport (CILT UK) is to debate this issue on September 10.
The Institute is inviting members and non-members to contribute to a discussion and debate on Road User Charging which is a key long term policy question that CILT (UK) believe the government must address.
CILT (UK)’s workshop on Road User Charging policy will debate and discuss the following:
1. What should the objectives of RUC be?
2. What principles should we be aspiring to?
3. What are the challenges?
4. What advice should we be giving government?
The aim of this session is to garner thoughts and opinions to update CILT’s position with a view to engaging with stakeholders and in particular to inform government in their thinking about what Road User Charging may look like.
Click here to book your place.