Local Transport Today is the authoritative, independent journal for transport decision makers. Analysis, Comment & News on Transport Policy, Planning, Finance and Delivery since 1989.

Road pricing is ‘fairer than fuel duty,’ says Social Market Foundation

Think-tank says fuel duty is regressive because it falls more heavily on lower-income drivers

Mark Moran
16 May 2022
Mean fuel duty costs versus mean road pricing costs for a range of scenarios, vehicle-owning households. Per-mile road charge set at a rate that raises the same amount of revenue as fuel duty does at present. Free mileage is on a per vehicle basis. Modelling the distributional impact of road pricing: Social Market Foundation modelling shown in Chart 1 shows that a road pricing regime with a uniform per mile charge and a free mileage allowance per vehicle would be slightly financially beneficial to lower income motorists, compared with the current fuel duty regime. For example, a revenue-neutral regime with a free allowance of 2,500 miles would leave motorist households in the bottom two income quintiles about £20 per year better off than the current fuel duty regime. This amounting to about £92m in aggregate. This rises to about £40 per year with a free allowance of 5,000 miles - £188m in aggregate.
Mean fuel duty costs versus mean road pricing costs for a range of scenarios, vehicle-owning households. Per-mile road charge set at a rate that raises the same amount of revenue as fuel duty does at present. Free mileage is on a per vehicle basis. Modelling the distributional impact of road pricing: Social Market Foundation modelling shown in Chart 1 shows that a road pricing regime with a uniform per mile charge and a free mileage allowance per vehicle would be slightly financially beneficial to lower income motorists, compared with the current fuel duty regime. For example, a revenue-neutral regime with a free allowance of 2,500 miles would leave motorist households in the bottom two income quintiles about £20 per year better off than the current fuel duty regime. This amounting to about £92m in aggregate. This rises to about £40 per year with a free allowance of 5,000 miles - £188m in aggregate.
 

Charging motorists a levy based on the miles they drive would be fairer and more popular than the current fuel duty regime and could even help address the cost of living crisis, suggests an influential UK think-tank. 

In a report endorsed by Lord George Young, a former transport secretary, the right wing Social Market Foundation (SMF) said that a new road pricing system is urgently needed to make transport policy more fair and fiscally sustainable. 

The growth in electric vehicles,...

+93% more

 

Transport Services Manager
Rutland County Council
Rutland
£54,976 - £58,977
Traffic Network Engineer
Portsmouth City Council
Portsmouth
£31,067 - £37,937
Transport Services Manager
Rutland County Council
Rutland
£54,976 - £58,977
View all Vacancies
 
Search
 
 
 

TransportXtra is part of Landor LINKS

© 2024 TransportXtra | Landor LINKS Ltd | All Rights Reserved

Subscriptions, Magazines & Online Access Enquires
[Frequently Asked Questions]
Email: subs.ltt@landor.co.uk | Tel: +44 (0) 20 7091 7959

Shop & Accounts Enquires
Email: accounts@landor.co.uk | Tel: +44 (0) 20 7091 7855

Advertising Sales & Recruitment Enquires
Email: daniel@landor.co.uk | Tel: +44 (0) 20 7091 7861

Events & Conference Enquires
Email: conferences@landor.co.uk | Tel: +44 (0) 20 7091 7865

Press Releases & Editorial Enquires
Email: info@transportxtra.com | Tel: +44 (0) 20 7091 7875

Privacy Policy | Terms and Conditions | Advertise

Web design london by Brainiac Media 2020