Phone: 01242 260066 | Email accountants@mitchells.org

MPs call for road pricing to replace motoring taxes

08 Feb 2022

The government must overhaul motoring taxes as it phases out new diesel and petrol vehicles, according to MPs.

MPs on the Transport Committee say the government must come up with new policy options by the end of the year. A ban on the sale of new diesel and petrol vehicles will be introduced by 2030, which means £35 billion will be lost in tax revenue.

In a report entitled Road Pricing, the Committee favoured a road charging system based on technology which measures road use.

Any scheme would include the drivers of electric vehicles, who would be required to pay for road usage. It would also cover vans and HGV vehicles, as well as overseas vehicle drivers.

Huw Merriman MP, Chair of the Transport Committee, said: 'The UK is the first major economy that needs to come up with an alternative to road tax as we are ruling out new petrol and diesel vehicles from 2030.

'We are more attracted to a big bang approach. We don't see any alternative to telematics in your car which would measure how many miles you drive. You'd have to put incentives in too, for example you could get a refund if your journey was delayed, as you get on rail journeys.

'This has to be a replacement tax, not an additional tax. It will not cost you any more as a collective of motorists, you will have to pay for the road that you use, which you already do.'

Try a site search Tax returns, budget, pension, rates and allowances...

Contact details

Office: 01242 260066

Company Registration No: 4161638
Company Registered in England and Wales.
Company details
Mitchell Glanville Limited
Registered Address: 41 Rodney Road, Cheltenham, Gloucestershire GL50 1HX

Mitchell Glanville Limited regulated by the Institute of Chartered Accountants in England and Wales If, during the provision of professional services to you, you need advice on investments, we may have to refer you to someone who is authorised by the Financial Conduct Authority, as we are not. However, as we are licensed by the Institute of Chartered Accountants in England and Wales, we may be able to provide certain investment services where these are complementary to or arise out of the professional services we are already providing to you.

© 2024 Mitchells Chartered Accountants. All rights reserved. We use cookies on this website, you can find more information about cookies here.