Government should discount EVs by a third… in return for road charging

Former government advisor advocates the introduction of pay-per-mile road charging by the end of the decade.

Nissan Leaf

A new report urges the government to offer a third off the price of new electric cars – in exchange for participating in a road charging trial.

The Recharging Britain’s Roads Policy report by Greener Transport Solutions, a not-for-profit group overseen by academics, advocates charging road users per mile by the end of this decade. It warned the government faces losing a huge amount of tax revenue from fuel duty and road tax, as drivers increasingly transition to electric cars.

The Treasury collects just over £40 billion in vehicle taxes, with £28 billion from fuel duty, £6 billion on VAT from fuel and another £6.5 billion from vehicle excise duty (VED). EV drivers do not pay fuel duty or VED.

The report – written by David Begg, a former transport advisor to the government, and Claire Haigh, the founder of Greener Transport Solutions – warned a widespread adoption of EVs could be slowed if the government introduced a pay-per-mile scheme without warning.

It suggests gradually phasing in the programme from 2022, with a pilot scheme in a city with a Clean Air Zone. The government could then offer a third off the price of EVs costing up to £35,000, in exchange for the driver committing to pay the new road user charge in 2023.

EVs risk ‘locking in car dependency’

While the report said road charging would be an effective way to claw back lost fuel duty revenue, it warned the transition to EVs risked ‘locking in car dependency’ and claimed this could push up congestion by 30 percent.

‘The risk is that in lowering the cost of motoring, electrification will increase car use and congestion, and make mode shift to public transport and active travel harder to deliver,” says the report. 

‘If we electrify the car fleet without sorting out how to transition away from fuel duty, road traffic could increase by 30 percent.’

ALSO READ:

How to check if you be charged in a Clean Air Zone

Google Maps to warn drivers about Clean Air Zones

£15 London Congestion Charge to continue

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Vauxhall slashes prices of electric Corsa and Astra

Vauxhall has announced more affordable prices for the Corsa and Astra Electric models. And there is a range of charging offers, too.

Rolls-Royce Spectre Lunaflair has unique, rainbow-effect paint

The Rolls-Royce Spectre Lunaflair is a bespoke luxury EV inspired by the moon, with colour-changing paint that took a year to develop.

Skoda reveals new Elroq electric SUV, priced from £31,500

Available to order later this month, the new Skoda Elroq offers an electric range of up to 360 miles and plenty of standard technology.

Hyundai has now made more than 100 million vehicles

A new Hyundai Ioniq 5 marks a production milestone for the Korean company, as it transitions to an electrified future.