Budget 2024: Facing the future of road pricing

Government needs to work with intelligent transport sector on a replacement for fuel duty, says Max Sugarman

Max Sugarman

Max Sugarman

Today, the chancellor confirmed an extension to the freeze on fuel duty for another year, but ignored the bigger issue of how the government will offset the revenue loss from falling fuel duty as the UK vehicle fleet transitions to electric.

As ITS UK set out in its Budget submission, the UK needs to take a long term approach, and government needs to outline plans for distance-based road pricing that incentivises the fairer and sustainable use of the transport network.

ITS UK members have the expertise, skills and knowhow to deliver a national scheme effectively, but require the political vision and will to create a more equitable and future-ready system.

It is positive to see increased funding for City Region Sustainable Transport Settlements, for EV charging infrastructure, rail projects and road maintenance across the UK. Transport technology has a key role to play in all these areas and in supporting a greener, more efficient and seamless transport network.

Whether through better roadside technology, demand responsive transport, mobility as a service or the more effective use of data, we look forward to working with the government to deliver its ambitions for transport.

Ahead of the Chancellor’s Autumn Budget, ITS UK published its submission, setting out five key priorities for the industry.

The document called for government to:

1. Deliver a roadmap to the introduction of mobility pricing, that incentivises the fairer and sustainable use of the transport network. Leverage technology to achieve the UK’s ambitions for the Strategic Road Network, through the maintenance and the renewal of current technology, alongside the introduction of new solutions.
2. Support Demand Responsive Transport by putting it on an independent regulatory footing with equivalent VAT treatment to other modes of public transport.
3. Provide a different approach to the procurement of transport technology that supports funding for operational expenditure for local authorities.
4. Support a strategic approach to the integration of transport, both through support for mobility as a service and smart ticketing technologies.

Max Sugarman is chief executive of Intelligent Transport Systems UK (ITS UK)