Filling the fuel duty funding hole

PwC looks at ways in which UK could look to road user charges to replace declining fuel duty revenues

The transition to electric vehicles will bring many benefits in terms of reducing harmful roadside emissions and decarbonising the economy, but the replacement of fossil-fuelled vehicles will result in a decline in sales of petrol and diesel and a consequent reduction in fuel duties paid to the government.

It is estimated that at least half UK cars will be EVs by 2035. If this happens it will result in a projected £36bn loss through tax revenues by 2050. Plugging this funding...