Some 62% of Britons supported road pricing for when EVs become mainstream
Chancellor Rishi Sunak is reportedly in favour of charges for every mile driven over concerns that switch to EVs
will leave a £40bn black hole in tax revenues
Survey of the public and company bosses found a growing acceptance for a pay-as-you-drive scheme
The Transport Select Committee last week launched a road pricing inquiry
The call for evidence from MPs will be open to all until 21 February 2021
Chancellor Rishi Sunak is thought to be considering a pay per mile road pricing structure but will face opposition from motorists.
There is yet to be any confirmation on what the pricing structure would look like and whether electric models and classic cars would continue to be exempt.
The Treasury points out their report contains initial analysis only rather than policy recommendations.
The Treasury says the review is part of a government-wide effort to address environmental issues including Boris Johnson’s 10 point plan for a “green industrial revolution”.
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However, the report has revealed the tax system could still be used to offer drivers “incentives” to make the switch to electric models.
Is road pricing looming? Treasury says switch to electric cars will leave a hole in tax revenues and it is considering how to offset lost income
Treasury says in latest Net Zero Emission review that it faces a fiscal black hole from lost revenues generated from drivers through vehicle and fuel taxes
It says government will need to consider how to offset these lost tax revenues
This could be achieved through adjustments to other taxes or reductions in government spending
Rishi Sunak is reportedly in favour of a pay-as-you-drive road pricing scheme
The UK Energy Research Centre has proposed higher purchase taxes on new petrol and diesel cars in the lead-up to the ban on petrol and diesel sales in 2030