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Thinktank calls for road usage tax to cover lost fuel revenue

14 October 2019
The average social costs of motoring (per additional kilometre driven), 2015 estimates - IFS
The average social costs of motoring (per additional kilometre driven), 2015 estimates - IFS

 

A system of road pricing should be introduced to combat traffic congestion and compensate for the £28bn loss of revenue from fuel duty as the country makes the transition to electric vehicles, the Institute for Fiscal Studies (IFS) has said.

The IFS, which specialises in UK taxation and public policy, said the Government’s pledge that the UK would reach zero net emissions by 2050 meant the tax take from petrol and diesel would shrink to nothing over the coming decades and a new way...

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