UK Congestion Tax 'Inevitable'

by Robert Lee, Tax-News.com, London

07 July 2010

As if Britain’s motorists haven’t already been taxed enough, the RAC Foundation's proposals to introduce road pricing may add to the already weighty burden. In a report entitled Governing and Paying for England’s Roads published by the RAC on July 5, one of the conclusions is that some form of ‘pay-as-you-go’ road system is inevitable.

Perhaps surprisingly, a recent Ipsos MORI survey showed that 46% of the British population supported some form of charging on the country’s motorways and major roads – this despite the fact that the last time such a scheme was mooted, Downing Street’s website crashed when 1.8 million motorists logged on to protest.

The RAC Foundation’s director, Professor Stephen Glaister, said that any road pricing scheme must be accompanied by other measures to benefit the motorist, including a cut in fuel duty and road tax. Professor Glaister went on: “Some form of ‘pay as you go’ system is inevitable because of the benefits it will deliver for motorists and the country, and the lack of a credible alternative. The Ipsos MORI poll shows that most people are instinctively opposed to road user charging when they think it is an extra tax. But when the details are explained and they realise the benefits then the opposition falls away dramatically. It is also telling that less than 1% of those opposed to ‘pay as you go’ see invasion of privacy as a major reason for objection.

“Motorists are resentful of the relentless rise in the cost of fuel, and feel short-changed by the amount spent on the road network. But these proposals address such issues. People are very familiar with the principle of ‘pay as you go’. For example we are already charged for gas and electricity on the basis of how much we use. If politicians shy away from making difficult choices then so be it, but it will be the next generation which has to live with the consequences.”

Motorists already pay fuel duty, vehicle road tax and value-added tax on the purchase of a car and in larger urban areas like London, there is the congestion charge and the low emission zone to contend with. It is not unreasonable to think that any form of road pricing scheme will be seen as just another tax and a further attack on a section of the community that is ‘easy prey’ for the government. The Exchequer already receives something like GBP42bn per year from motorists in tax and duty revenues.

Those who support a road pricing scheme say that satellite technology is already in place to police road usage by motorists and that busy urban roads and motorways would attract higher charges than quieter, rural routes. Charges would also be affected by when someone travels.

Recommended