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Select Committee · Transport Committee

Road pricing

Status: Closed Opened: 13 Oct 2021 Closed: 6 Mar 2023 12 recommendations 5 conclusions 1 report

We launched an inquiry into road pricing in December 2020 to explore several issues: The case for introducing some form of road pricing and the economic, fiscal, environmental and social impacts of doing so; Which particular road pricing or pay-as-you-drive schemes would be most appropriate for the UK context and the practicalities of implementing such … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Fourth Report - Road pricing HC 789 4 Feb 2022 17 Responded

Recommendations & Conclusions

3 items
1 Conclusion Fourth Report - Road pricing Accepted

Fuel duty and vehicle excise duty raise some £35 billion a year.

Fuel duty and vehicle excise duty raise some £35 billion a year. Approximately 20% of that revenue is disbursed on maintaining and developing the roads. Neither fuel duty nor vehicle excise duty are currently levied on electric vehicles. The Government is phasing out the sale of petrol and diesel cars … Read more

Government response AI summary
The government states that it will ensure the tax system encourages EV uptake, revenue from motoring taxes keep pace, and that electric cars, vans, and motorcycles will pay Vehicle Excise Duty from 2025.
Read full response →
Department for Transport
2 Recommendation Fourth Report - Road pricing Accepted

The Government must start an honest conversation with the public on the funding implications for...

The Government must start an honest conversation with the public on the funding implications for road development and maintenance and for other essential public services of decreased revenue from vehicle excise duty and fuel duty.

Government response AI summary
The government states that it will ensure the tax system encourages EV uptake, revenue from motoring taxes keep pace, and that electric cars, vans, and motorcycles will pay Vehicle Excise Duty from 2025.
Read full response →
Department for Transport
4 Conclusion Fourth Report - Road pricing Accepted

Zero fuel duty and vehicle excise duty help motorists to offset the higher purchase price...

Zero fuel duty and vehicle excise duty help motorists to offset the higher purchase price of electric vehicles compared with petrol and diesel alternatives. Those prices are predicted to decrease as sales of new and second-hand electric vehicles increase. As prices decrease, more motorists will purchase electric vehicles, which will … Read more

Government response AI summary
The government states that it will ensure the tax system encourages EV uptake, revenue from motoring taxes keep pace, and that electric cars, vans, and motorcycles will pay Vehicle Excise Duty from 2025.
Read full response →
Department for Transport

Oral evidence sessions

1 session
Date Witnesses
20 Oct 2021 Alistair Hunter · Arup, Dr Nina Skorupska CBE · The Association for Renewable Energy and Clean Technology, Duncan Buchanan · Road Haulage Association, John Siraut · Jacobs, Mike Williams · HM Treasury, Professor Phillip Goodwin · Foundation for Integrated Transport, Steve Gooding · RAC Foundation, Toby Poston · British Vehicle Rental and Leasing Association (BVRLA) View ↗

Who gave evidence

8 witnesses
WitnessOrganisationSessions
Alistair Hunter · Highways Business Leader Arup 1
Dr Nina Skorupska CBE · Chief Executive The Association for Renewable Energy and Clean Technology 1
Duncan Buchanan · Director of Policy Road Haulage Association 1
John Siraut · Director of Economics Jacobs 1
Mike Williams · Director, Business and International Tax HM Treasury 1
Professor Phillip Goodwin · Senior Fellow Foundation for Integrated Transport 1
Steve Gooding · Director RAC Foundation 1
Toby Poston · Chief Executive Officer British Vehicle Rental and Leasing Association (BVRLA) 1