Fourth Report - Road pricing
Select Committee
Transport Committee
HC 789
4 February 2022
Government response
Third Special Report - Road Pricing: Government Response to the Committee’s Fourth Report of Session 2021–22 · published 6 Mar 2023
Recommendations & Conclusions
17 results
1
Conclusion
Accepted
Para 7
Fuel duty and vehicle excise duty raise some £35 billion a year.
Conclusion
Fuel duty and vehicle excise duty raise some £35 billion a year. Approximately 20% of that revenue is disbursed on maintaining and developing the roads. Neither fuel duty nor vehicle excise duty are currently levied on electric vehicles. The Government …
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Government Response Summary
The government states that it will ensure the tax system encourages EV uptake, revenue from motoring taxes keep pace, and that electric cars, vans, and motorcycles will pay Vehicle Excise Duty from 2025.
Department for Transport
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2
Recommendation
Accepted
Para 8
The Government must start an honest conversation with the public on the funding implications for...
Recommendation
The Government must start an honest conversation with the public on the funding implications for road development and maintenance and for other essential public services of decreased revenue from vehicle excise duty and fuel duty.
Government Response Summary
The government states that it will ensure the tax system encourages EV uptake, revenue from motoring taxes keep pace, and that electric cars, vans, and motorcycles will pay Vehicle Excise Duty from 2025.
Department for Transport
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3
Recommendation
Rejected
Para 9
To promote fairness and public acceptance, any alternative road charging mechanism must (a) entirely replace...
Recommendation
To promote fairness and public acceptance, any alternative road charging mechanism must (a) entirely replace fuel duty and vehicle excise duty rather than being added alongside those taxes; and (b) be revenue neutral with most motorists paying the same or …
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Government Response Summary
The government states it does not have further views on the committee's recommendations regarding the ways road pricing should be considered.
Department for Transport
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4
Conclusion
Accepted
Para 14
Zero fuel duty and vehicle excise duty help motorists to offset the higher purchase price...
Conclusion
Zero fuel duty and vehicle excise duty help motorists to offset the higher purchase price of electric vehicles compared with petrol and diesel alternatives. Those prices are predicted to decrease as sales of new and second-hand electric vehicles increase. As …
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Government Response Summary
The government states that it will ensure the tax system encourages EV uptake, revenue from motoring taxes keep pace, and that electric cars, vans, and motorcycles will pay Vehicle Excise Duty from 2025.
Department for Transport
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5
Recommendation
Acknowledged
Para 15
In signalling a shift to any alternative road charging mechanism, the Government must make it...
Recommendation
In signalling a shift to any alternative road charging mechanism, the Government must make it clear to motorists who purchase electric vehicles that they will be required to pay for road usage, as is currently the case for petrol and …
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Government Response Summary
The government acknowledges the need to ensure the tax system encourages EV uptake and that revenue from motoring taxes keeps pace, while remaining affordable. They highlight that electric cars, vans, and motorcycles will pay Vehicle Excise Duty in the same way as petrol and diesel vehicles from 2025.
Department for Transport
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6
Recommendation
Rejected
Para 19
In designing a replacement for fuel duty and vehicle excise duty, the Government must examine...
Recommendation
In designing a replacement for fuel duty and vehicle excise duty, the Government must examine how an alternative road pricing mechanism can use price as a lever for change while subjecting motorists to fair levels of taxation. To that end, …
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Government Response Summary
The government does not have further views on the Committee’s recommendations for the ways in which road pricing should be considered.
Department for Transport
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7
Recommendation
Not Addressed
Para 20
The introduction of an alternative road charging mechanism that supported motoring and motorists might work...
Recommendation
The introduction of an alternative road charging mechanism that supported motoring and motorists might work against the Government’s ambition for half of all journeys in towns and cities to be walked or cycled by 2030. In designing an alternative road …
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Government Response Summary
The Government states it does not have further views on the Committee’s recommendations.
Department for Transport
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8
Recommendation
Not Addressed
Para 26
The Government must set out a range of options to replace fuel duty and vehicle...
Recommendation
The Government must set out a range of options to replace fuel duty and vehicle excise duty. Those options should be revenue neutral and not cause drivers, as a whole, to pay more than they do currently. One of those …
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Government Response Summary
The government does not currently have plans to consider road pricing, reiterating their 2019 manifesto commitment.
Department for Transport
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9
Conclusion
Not Addressed
Para 29
The taxes imposed by fuel duty and vehicle excise duty are increasingly duplicated by local...
Conclusion
The taxes imposed by fuel duty and vehicle excise duty are increasingly duplicated by local schemes that charge motorists for entering congestion zones and clean air zones. New taxes, and particularly those that rely on new technology, take many years …
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Government Response Summary
The government does not currently have plans to consider road pricing, reiterating their 2019 manifesto commitment.
Department for Transport
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10
Recommendation
Not Addressed
Para 30
The Government must examine how an alternative road pricing mechanism can be delivered alongside devolved...
Recommendation
The Government must examine how an alternative road pricing mechanism can be delivered alongside devolved local road charging schemes, while respecting the existing devolution settlement. Any alternative road pricing mechanism must be revenue neutral to the Government rather than causing …
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Government Response Summary
The government has not provided any views on the committee's recommendation regarding an alternative road pricing mechanism.
Department for Transport
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11
Recommendation
Not Addressed
Para 33
The Government must examine the role that telematic technology can play in delivering a replacement...
Recommendation
The Government must examine the role that telematic technology can play in delivering a replacement road pricing mechanism that sets the cost of motoring based on the duration and time of the journey and vehicle type and size.
Government Response Summary
The government has not provided any views on the committee's recommendation regarding the use of telematic technology for road pricing.
Department for Transport
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12
Recommendation
Not Addressed
Para 34
The Government must assess the potential effect of telematic technology on changing drivers’ behaviour and...
Recommendation
The Government must assess the potential effect of telematic technology on changing drivers’ behaviour and delivering its wider policies on air quality, congestion, public transport and public health.
Government Response Summary
The government's response does not address the recommendation, instead stating it has no further views on how road pricing should be considered.
Department for Transport
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13
Recommendation
Not Addressed
Para 35
The Government must assess the potential effect of a road pricing mechanism based on telematic...
Recommendation
The Government must assess the potential effect of a road pricing mechanism based on telematic technology on high-mileage drivers, such as road hauliers and those in rural communities, and on those least able to adapt to increased motoring costs.
Government Response Summary
The government does not have further views on the Committee’s recommendations for the ways in which road pricing should be considered.
Department for Transport
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14
Conclusion
Not Addressed
Para 37
The successful implementation of a national, technology-based road pricing scheme is contingent on the Government...
Conclusion
The successful implementation of a national, technology-based road pricing scheme is contingent on the Government explaining how data capture will work in practice, ensuring that data management is subject to rigorous governance and oversight and reassuring the public that their …
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Government Response Summary
The government does not have further views on the Committee’s recommendations for the ways in which road pricing should be considered.
Department for Transport
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15
Recommendation
Not Addressed
The Government must work on a cross-departmental basis to ensure that equal focus and policy...
Recommendation
The Government must work on a cross-departmental basis to ensure that equal focus and policy ownership is placed on the delivery of more zero emission vehicles and the continued funding and maintenance of the road network. The Treasury and the …
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Government Response Summary
The government has not provided any views on the committee's recommendation regarding cross-departmental collaboration on zero emission vehicles and road network funding.
Department for Transport
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16
Conclusion
Not Addressed
Para 41
Bearing in mind the partial devolution of transport policy, consultation and agreement between the UK...
Conclusion
Bearing in mind the partial devolution of transport policy, consultation and agreement between the UK Government and the devolved Administrations will be key to developing and implementing an alternative road charging mechanism.
Government Response Summary
The government does not have further views on the Committee’s recommendations for the ways in which road pricing should be considered.
Department for Transport
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17
Recommendation
Not Addressed
To fulfil their respective and connected responsibilities for managing congestion and maintaining the public finances,...
Recommendation
To fulfil their respective and connected responsibilities for managing congestion and maintaining the public finances, the DfT and the Treasury must jointly establish an arm’s-length body with an appointed individual to evaluate its preferred options to replace fuel duty and …
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Government Response Summary
The government does not have further views on the Committee’s recommendations for the ways in which road pricing should be considered.
Department for Transport
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