2019-03-18 12:10
A national network of road tolls, costing drivers £700 a year on average, should be put in place to compensate for a large loss of income from fuel duty, researchers have said.
At present, fuel duty is charged at a rate of 57.95p-per-litre for petrol and diesel. The Treasury has been warned, though, that as electric cars become more prevalent, the Government could stand to lose more than £14 billion by 2040.
• UK petrol and diesel prices: February price rise ends three months of cuts
The study, which was conducted by Bloomberg New Energy Finance and reported by the Times, says that while the Government could try and compensate for this loss by increasing fuel duty on the remaining petrol and diesel cars, or impose higher surcharges on electricity, it would be more effective to abandon the tax altogether in favour of a mileage-based road-charging system.
The researchers have suggested a levy of 7.5p-per-mile be introduced by 2030, rising to 9.1p-per-mile by 2040. Other major countries, including the US, China and Germany, have also been advised to consider the concept.
• Electric vehicles cheaper to own than petrol or diesel cars
Recent political history suggests, however, that such a scheme may not go down very well in the UK. Back in 2005, the ruling Labour Government announced plans for a road pricing policy where drivers could have to pay up to £1.34 per mile to use motorways at peak times.
The plans were subject to a huge wave of public backlash, including an online petition in 2007 that attracted more than 1.8 million signatures. As a result, the Government was forced to abandon the scheme.
What do you think about the proposed toll network? Let us know in the comments below...
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