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electric cars charging | accountingweb | How to replace road fuel duty
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What’s the best route to replacing road fuel duty?

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Road fuel duty will have to be replaced as petrol and diesel are substituted for electricity to power vehicles. Will this spark a rethink of how all road transport is taxed?

3rd Aug 2023
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Fuel duty currently raises around £25bn per year, which is approximately the same as the amount collected through business rates and about 2.45% of all tax revenue (based on 2022/23 figures).  Since 1999 the amount of fuel duty collected has decreased relative to other taxes, as vehicles have become more fuel efficient, and the fuel duty rates have been frozen since 2011.

With the switch to electric cars happening at pace, the government needs to come up with a solution that maintains or increases the current tax take, but is also simple to implement and as fair as possible to all drivers.

Taxing transport 

There are three streams of tax generated from road transport:

  • vehicle excise duty (VED)
  • fuel duty on petrol, diesel and LPG
  • VAT on sales of vehicles and fuel.

VED exemption

To encourage the take-up of electric vehicles, zero-emission cars and vans have been exempt from VED, commonly known as road tax. However, that exemption is due to end for electric cars, vans and motorcycles in April 2025.

VED is a tax that is difficult to avoid as you can’t insure a vehicle without the VED being paid, and it’s a handy way for the government and the police to keep track of who owns which vehicle. 

There are a number of alternative ways of taxing the use of road transport, in addition to VED. 

Road pricing 

The London congestion charge, low-emissions zones and bridge tolls are all examples of road pricing. Although these fees are accepted in limited areas, a countrywide scheme would be politically unpopular and very technologically complex to apply.

Millions of numberplate recognition cameras would be needed on every road, which would require thousands of poles to be erected, some in very scenic areas. If just certain roads were taxed, such as motorways, this could lead to motorists using more minor routes and creating local congestion.

A national scheme may override existing emissions charging zones, in which case the locally applied fees would either be taken away from the local authorities or there would be double charging for the use of some roads.

The devolved authorities generally have control over their own roads, so a UK-wide scheme would have the potential for conflict with the Scottish and Welsh governments. 

Mileage pricing  

The MOT certificate for each vehicle records the mileage at the time of the test, so it should be easy to work out the actual mileage driven in the period between MOTs and construct a mileage charge for each vehicle.

The Driver and Vehicle Licensing Agency (DVLA) already holds data from MOT certificates, so collecting the mileage figure should not be too difficult to do. The annual VED charge could be adjusted to reflect the miles driven plus the type of car. Drivers could make one payment of VED plus mileage charge directly to the DVLA, or a series of monthly on-account payments by direct debit. 

Cars under three years old don’t need an MOT, so a mileage-only certificate could be issued in those early years by organisations authorised to issue MOTs. 

This mileage charge is a blunt instrument as it doesn’t allow for variable charges according to the type of road or congestion, but does have the advantage of being relatively simple to implement. 

New Zealand already has a similar system for diesel vehicles used on public roads, as diesel doesn’t carry fuel tax at the pump, although petrol does.

Black boxes 

GPS-based telematics are contained in the “black boxes” that some drivers have fitted in their cars to track where and when the vehicle is driven.

Similar boxes could be installed in every vehicle, at some cost. There would be privacy issues over collecting so much detailed data to form the basis of road-use charge, and a risk of data leakage. Data errors have been experienced with the current black boxes, so those technical problems would have to be overcome.

If only electric vehicles were required to have a black box this would be seen as discriminatory and may put people off switching to electric.     

Tax the electricity

Electricity is used for many things, so how would the additional tax on electric power used for electric vehicles (EVs) be isolated and measured?

Most domestic EV charging points are connected to the internet, so are “smart” and could report the power used to charge the EV separately to the power company or another body. Commercial EV charging points already collect data on the amount of power used by each customer.

Electricity used on domestic premises carries the reduced rate of VAT of 5%, while VAT on all other electricity is charged at the full standard rate of 20%. Should VAT on the power used at all EV points, including domestic, be increased to 20%, or even higher? 

This EV-charging tax would be avoided by those who charge their vehicle using a three-pin plug in an ordinary socket. It is possible to do this, but a full charge takes many hours. 

The tax would also be dodged by those who charge their EV directly from a battery that is powered by their own solar panels. One of my neighbours does this.  

Tax the tyres 

Rubber tyres pollute the atmosphere and waterways as discussed in the recent BBC Inside Science programme. Perhaps the use of tyres could be taxed as a proxy for miles driven and to discourage pollution.

Adding the tax to the price of tyres would be simple enough. It may have the effect of encouraging the development of longer-lasting tyres.   

Complexity and fairness

Electric vehicles need to support more tax, in some form, to replace road fuel duty. But designing that replacement tax will be a trade-off between complexity and fairness. My preferred option would be the mileage-pricing model with the charge collected by the DVLA alongside VED.

Replies (48)

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By Justin Bryant
03rd Aug 2023 12:53

How about higher speeding fines and an army of retired pensioners with speed guns (there must be 1,000s willing to do that job). I see about a dozen speeding drivers a day on quiet backroads etc.

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Replying to Justin Bryant:
Danny Kent
By Viciuno
04th Aug 2023 12:58

Don't even need to go to quiet backroads, drive on any motorway, dual carriage way or any public road for that matter!

People treat the speed limit as advisory. When councils issue fines people complain that the council is making excess funds - rather than legally enforcing law breaking.

An issue that needs to be taken far more seriously in my opinion. Have no time for people who speed everywhere as they get away with it.

Laughable as well as the time they save (if any) can be counted in the seconds or minutes and just costs them a fortune every time they have to speed up and break.

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Replying to Viciuno:
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By Hugo Fair
04th Aug 2023 13:23

"When councils issue fines people complain that the council is making excess funds - rather than legally enforcing law breaking"

I know what you mean, but love the thought of my Council "enforcing law breaking" ... a power they wish they had, but have to be content with fiddling with the road signage in order to catch people.
For example, a dual carriageway near me that changes from a 20mph limit to 40 then down to 30 before reverting to 40 - all in the space of 1/2 mile. No other changes, just a 'trap' to catch a few non-locals.

Mind you, AFAIK the council don't get to keep the speeding fines ... which is why they put much more effort into things which do enrich them (crossing a bus lane 'too early' when turning left / entering a street that has been declared (via tiny lamppost sign) to be a car-free zone just for a few days / parking for 5 minutes to haul boxes into the charity shop and using an 'unloading bay' that is apparently only for commercial vehicles despite no signage to that effect / and so on.

I agree that speeding is both dangerous and pointless, but you can see why some motorists feel persecuted!

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Replying to Viciuno:
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By moneymanager
06th Aug 2023 01:19

But we now have the absurdity of 20mph on the dual lane Embankment 24/7/365, you can't tell me that's necessary on any basis, most ICE vehicles are not designed for efficiency at that speed, it is designed inconvenience.

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Replying to Viciuno:
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By moneymanager
06th Aug 2023 10:23

When I was a boy the few motorways in England had no speed limit, cars today are immesuarably more robust than the drum braked biscuit tins of the '60's, no anti-lock braking then.

Motorway speed limits were adopted as a supposed temporary measure due to the OPEC oil crisis which, like the "for the Napoleonic War" income tax has stuck to the proverbial blanket, basically it's mission creep of government extraction.

I have every respect for condition appropriate limits but having fixed and absurdly low limits on empty motorways at 2 a.m. is just that, getting a fine for a marginal infraction makes no sense, not tackling capacity reducing second and third lane lane hogging speed dictators is a major problem.

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Replying to Justin Bryant:
RLI
By lionofludesch
05th Aug 2023 11:12

Justin Bryant wrote:

How about higher speeding fines and an army of retired pensioners with speed guns (there must be 1,000s willing to do that job). I see about a dozen speeding drivers a day on quiet backroads etc.

I got a NIP for doing 37 mph in a 40 mph zone. They told me I'd have to go to court if I wanted to contest it but they soon backed down when I told them the photo was taken right next to a sign that said "40" on it. Clerical error, apparently. Either that or coppers no idea where they were.

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Replying to lionofludesch:
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By Justin Bryant
06th Aug 2023 09:47

The easy fix there is for my new system to compensate for such wrongly imposed penalties to incentivise only correct penalties (with a refund checker to stop collusion by rogue pensioners etc. who in turn are fined massively for that).

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Replying to Justin Bryant:
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By Justin Bryant
16th Aug 2023 11:25

It looks like my great idea is gonna be a lot easier than I thought! https://www.bbc.co.uk/news/uk-england-cornwall-66508840

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Replying to Justin Bryant:
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By Justin Bryant
22nd Aug 2023 20:08
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Replying to Justin Bryant:
By Ruddles
19th Aug 2023 09:12
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Ivor Windybottom
By Ivor Windybottom
03rd Aug 2023 14:51

Just use the system that crime shows on TV use - they always have clear CCTV information, almost instantly available, covering every street - brilliant!

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By Open all hours
03rd Aug 2023 14:54

Heavily fine everyone hogging lanes 2 or 3 on 3 or 4 lane motorways. Same with anyone doing less than 55 on A roads in good weather.
More realistically, given that we seem determined to slow things down and make everything (from journeys to any interaction with the civil service or large organisation) take longer it has to be based on mileage and collected through the trackers which the Chinese will be more than willing to fit to the increasing number of cars they’ll be selling over here.
Also £10/minute congestion charge on slow walkers in urban areas.

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By ireallyshouldknowthisbut
03rd Aug 2023 14:55

If tyres were prohibitively expensive that would mean a lot more driving on worn ones, so a safety issues, not to mention smuggling and some dodgy retreads, so I don't think that would work.

Mileage is the most logical one. Politically tricky.

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Replying to ireallyshouldknowthisbut:
boxfile
By spilly
04th Aug 2023 17:18

The tyres on EVs apparently wear out quicker as the overall vehicle weight is greater, so any EV owner is not going to be keen on extra tyre tax.

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Replying to spilly:
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By Mallock
07th Aug 2023 17:34

Our i-Pace is still going strong on its original tyres at 26,000 miles. I reckon they will get to 30,000 without too much trouble. The rear tyres on my V8 on the other hand need changed every 8,000 miles if I am lucky. I am against all further persecution of the motorist or any tracking of my journeys: can't have people knowing I sneaked away for 9 holes!!

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By Hugo Fair
03rd Aug 2023 18:42

Not sure why these options seem to be being considered as mutually exclusive ... when the baseline technology already exists for any hybrid you care to invent (as a set of pricing rules) that includes Road pricing + Mileage pricing (using the aforementioned Black boxes).

My (very elderly, petrol) car has a device (about the size of the old cigar-lighter for those with long memories) installed ... which was provided free by my insurer and tracks the car's movement (to within a few feet) 24/7.
I can go to an app, anytime that I want, to see all my journeys (including the loops where I got lost!) - showing start/end times, distance, etc. - or simply find where I've left it!
And every month they send me a notification, a few days before taking payment via DD, of how much I'm about to be charged.

They're a trusting bunch so the car isn't disabled if you disconnect the tracker, but that would be an easy parameter to add (especially for electric cars).

The data collection technology exists and pricing policies can be tuned/tinkered with to whatever desires Treasury mandarins/wonks are prepared to admit harbouring ... for instance differential rates based on car model or price or age or speed or whatever.

The software to show the journeys, with all the relevant parameters measured and the net cost (to be paid monthly via DD), is not difficult ... although of course that doesn't mean that HMRC wouldn't invite a bunch of porcines round to breakfast whilst developing/testing it!

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Replying to Hugo Fair:
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By Philysis
04th Aug 2023 19:32
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Replying to Philysis:
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By Hugo Fair
04th Aug 2023 20:06

I may well be "incorrect", but it's hard to definitively agree or rebut your assertion unless you specify what I've said that is wrong ... especially with the jumbled up order in which the Aweb software publishes comments out of their original order.

FWIW the very extract to which your URL points states:
"Unlike funds raised from speed camera fines, which are transferred to central Government, surplus funds from moving traffic enforcement will be kept by the local authority"
... which is exactly what I said (in different words) in my post above at 13:23 on 04th Aug 2023!

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the sea otter
By memyself-eye
04th Aug 2023 09:14

A black box fitted to all new cars will become mandatory. This will record the distance and time (of day) driven. Owners will then be invoiced monthly, probably at variable rates - for instance at peak hours on busy motorways you pay more.
These devices are already fitted for insurance monitoring so the technology exists.
Big brother it is, but that's what will happen.
Don't pay on time and 'they' will disable the car from a secret bunker hidden in the cotswolds.

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Replying to memyself-eye:
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By Hugo Fair
04th Aug 2023 13:34

I'm not sure that Big Brother is the real issue (uncomfortable though that is) ... but it would spell the end for Britain's favourite pastime - telling 'mistruths'.

Whether telling the boss that you're late because you were held up in traffic or your partner that you're working late at the office or tax collector that you hardly ever use the car for non-business journeys or ...
One click and the truth is revealed.

Of course the rich may well take a leaf out of the book of philanderers the world over (a 2nd pay-as-you-go mobile) ... so now's the time to invest in what could become a lucrative market in 'unlisted' 2nd cars!

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By Ardeninian
04th Aug 2023 09:25

I've always thought the fairest solution would be to meter the electricity flowing into the car (net flow with the advent of V2G technology) and set a flat tax based on kWh - similar to Rebecca's fourth option. Data could be collected just as with any other smart meter. Then either subcontract the electricity companies to collect the tax or have the DVLA do it - monthly DD similar to an energy bill. This avoids the three-pin problem and the rural vs urban debate for a flat mileage charge: it's simply a tax on energy use just as fuel duty currently is.

However, do we want to tax EVs in this way? Energy use from an increasingly green grid (or bypassing the grid entirely with solar panels) isn't the same behaviour as burning dinosaurs. Perhaps a mixture of road pricing to dissuade use in certain areas combined with making up the difference in wealth or higher income taxes is the way forward? That and ramping up fuel duty to encourage the changeover, together with a scrappage scheme.

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By Self-Employed and Happy
04th Aug 2023 09:53

Really quite a simple solution, you just charge people based on mileage.

You work out what the duty currently is on a litre of fuel, then how many miles that 1L of fuel takes the average car / bus / lorry.

Then work backwards and apply a mileage charge that is equivalent, you could even (as it's going that way) have some sort of smart meter on each new car (like electricity do) that sends the readings to a central place that auto generates invoices and have everyone on variable direct debit to take the money each month.

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By listerramjet
04th Aug 2023 09:54

Perhaps don’t replace it with anything.

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Ivor Windybottom
By Ivor Windybottom
04th Aug 2023 10:22

What about little toll booths - great employment for all those affected when AI eats your job.
Would help the little shed makers too and increase use of forests.

More seriously, there is no reason why the satellites cannot track every car, person, cycle and horse to charge them for every mm moved.

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By Nebs
04th Aug 2023 10:23

Don't replace it. Just spend less.

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By Kentwillumsen
04th Aug 2023 10:49

Seems like the author and some people in the comments wants to go full China.
Surveillance; cameras; fines; fees and more; what a great country to live in?

For most people and the British economy as a whole; vehicles are needed to live;thrive and survive; especially if you live in the countryside or provides on-site services like craftsmen.

We already have a road tax, which should pay for the roads; and this should apply to all road users maybe even bicycles, so we can get better cycle lanes.

Maybe it would be better to ask why the government needs so much tax; the highest tax since WWII?

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Replying to Kentwillumsen:
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By Self-Employed and Happy
04th Aug 2023 11:03

Clearly the govt need so much tax because they've spunked so much up the wall the debt is humungous.

The interest on our debt this year is £115B, 63% of the NHS budget.

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Replying to Kentwillumsen:
By coops456
14th Aug 2023 07:23

Kentwillumsen wrote:

We already have a road tax, which should pay for the roads; and this should apply to all road users maybe even bicycles, so we can get better cycle lanes.

Did you read the article?!

"Road tax" was abolished in 1937 and replaced by Vehicle Excise Duty, which is now based on emissions. VED forms part of the general taxation pot. Likewise, roads are funded from general taxation.

As the author points out, with the growth of EVs, the government will need to find a different metric to fill the taxation gap. Mileage-based would seem fairest, on a sliding scale so the heaviest (i.e. most damaging) vehicles pay most. Nobody in suburbia needs a Chelsea tractor to take the kiddies to school!

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By mydoghasfleas
04th Aug 2023 11:13

Most of the alternatives listed would work if the population was 100% honest and law abiding but they are not.

MOT certificates is an idea. As mentioned you do not need to have the vehicle examined until it is three years old. If you change your vehicle every three years, no charge. Will people put up with mileage only MOTs. An MOT is not free, would the mileage only certificate be free, if so how does the MOT station get paid? If reports are given any credence there are 1,000s of vehicles on the road without MOTs or insurance or are cloned. Is it possible to clock the mileage, if it runs on software someone will figure it out.

Black box technology sounds good but how much does it cost? Will drivers be happy for the state having access to their movements? Is it a back door route to national identity cards? How long before there is software to clone the box or to alter the usage? Is it permissible to call a box black?

The tyre idea is novel but I am nor sure if there is any mileage (boom boom) in it. As electric vehicles are considerably heavier than petrol/diesel, their wear rate would be higher, so it penalises EVs; that said the power of 4 argument about weights and road wear applies.

No mention was made of hydrogen powered vehicles but the news about them may just be hot air.

I note the preference for a mileage based option as being fair. As an Inspector of Taxes, I was taught early on never to mention the concept of fair with taxes, and, if the legislation says you tax blue eyes then that is what you do. So I will not be drawn on fairness.

Finally, remember duties on vehicles in whatever format are not hypothecated to road costs, they are a form of taxation the proceeds from which go into the general pot. If it does not come in as one duty or tax it will be collected elsewhere.

Apropos nothing, HMRC quarterly report, second bullet point, "in 2022 to 2023 we generated £814 billion in tax revenue [footnote 1] – an increase of 11.3% on last year – money which is spent by government on schools, the NHS, police and other essential services we all rely on." How did HMRC "generate" tax revenue? I think it may have attempted to collect it but that is rather different from generating which implies some sort of production. It did not even collect that amount; the footnote shows the Office for Budget Responsibility put the figure at £786 billion. Also 11.3% up, what a surprise, wasn't inflation in that period roundabout 11.3%; patting its own back for performing no better.

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VAT
By Jason Croke
04th Aug 2023 12:20

I charge my EV via solar stored in batteries, batteries charge up for free during the day and then discharge into the car at night. Zero cost (apart from the £££ installing the whole setup).

We need a tax that can't be avoided by people like me with solar, that is what made fuel duty such an easy tax, you have a petrol/diesel car, you pay tax each time you fill up, can't be avoided unless you go down the red diesel route.

The tyre wear myth has been debunked, EV's don't produce any more tyre wear than an petrol car does, indeed, EV's use regenerative breaking which allows for less brake dust and tyre wear, unlike the prolific Range Rovers and SUV's which weigh much more than a typical EV, although I do like the idea of taxing tyres as that is, like fuel duty, something you just can't avoid...but will people not change their tyres/drive until down to slicks and increase chances of accidents?

I do like the idea of using the MOT system, it already exists and would need tweaking to capture cars less than 3 years old, it could be a retrospective tax based on the mileage already done/recorded, so like paying your tax bill at year end or Council tax in one go, you'd have a once a year variable charge and again, can't be avoided by the consumer unless they do illegal things, but EV's don't have a mechanical record of your mileage , it is uploaded to the cloud/forms part of your service records.

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Replying to Jason Croke:
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By emanresu
04th Aug 2023 20:18

Jason Croke wrote:

The tyre wear myth has been debunked, EV's don't produce any more tyre wear than an petrol car does, indeed, EV's use regenerative breaking [sic] which allows for less brake dust and tyre wear

Not so. Regenerative braking will involve extra tyre wear. Think about it. Whether it is driving or regenerative braking, there is friction between the tyres and the road.

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By ASF
04th Aug 2023 12:30

Having a great laugh reading some of the more amusing solutions, but as I have always felt since moving away from t'smoke, what about a decent public transport system as a radical and long lost solution?! Could even be based on something like electric or hydrogen buses and trams and trains that run on time...........
We could nail effigies of Beeching up at the entrance to every station as a memory of where the ticket offices once were.

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Replying to ASF:
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By Jason Croke
04th Aug 2023 12:42

Nothing beats a modern and efficient public transit system.

Europe seem to have that well nailed, in Nice they have electric buses that charge whilst waiting at the terminus and travel to Cannes and back, also a tram system costing a couple of Euros a pop. Geneva has trams too and a direct link from airport to train station. Lyon airport has a train station attached to it and another decent tram and underground system. You can fly in and be in town centre within 30 minutes for about €10.

I take a train 3 stops (15 minutes) to Leicester station and it costs £14. return and my return ticket to London is insane unless I get an advance fare and know where I want to be 6 weeks from now.

The issue is all of these public systems require investment and that investment comes from the local authority/town council, they invest for the future. In the UK, we give licenses to Aviva which do not encourage investment and of course private sector involvement means profits before investment, so the UK has dirty buses, only a handful of tram systems and trains that are worn out (and even the trains are leased and not owned so again we have private companies who put profit before investment.

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Replying to Jason Croke:
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By ASF
04th Aug 2023 13:17

Afraid unless and until central government in the UK buys into these European models we shall never see anything close to being able to significantly reduce our reliance on private vehicles, with all the cost, congestion and pollution that goes with it. Sad, but the UK seems light years behind in this particular model.

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Replying to Jason Croke:
JD Portrait
By John Downes
04th Aug 2023 13:37

"Nothing beats a modern and efficient public transit system."

Except a car. It goes when you want, at any time of the day. It goes wherever you want, you don't have to drive to a hub and then change it for another one.

And cars do actually exist, whereas modern and efficient public transit systems do not, especially if you live in the country.

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Replying to Jason Croke:
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By Hugo Fair
04th Aug 2023 20:19

"Nothing beats a modern and efficient public transit system"

Well we should be absolutely fine then ... the UK has got doing 'nothing' down to a fine art! :=)

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Replying to ASF:
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By farrcorfe
05th Aug 2023 10:42

Why do people think a decent public transport system will solve everything?. For a car journey of 35 minutes our local bus takes a few minutes short of 2 hours. It is a double-decker and generally has about 5 passengers at any one time. The clouds of emissions it makes takes some believing. And as for trains: well, you generally have to drive to the station and then onward to your destination and pay more than £8 to park so that isn't going to win any votes either. Cars are good and contribute greatly to the Treasury coffers; my diesel averages 75mpg and has an emissions rating of 106g/km with loads of nox filters and Adblue stuff and so on. My first set of tyres lasted 56k miles

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JD Portrait
By John Downes
04th Aug 2023 13:11

How about we abandon the Net-Zero stupidity, cancel the ICE car ban, and let the 'problem' disappear of it's own accord? People don't and won't buy electric cars except under bribe or compulsion.

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By Husbandofstinky
04th Aug 2023 13:50

As blunt instrument as it is, mileage to me is the most pragmatic way forward.

Compulsory MOT data for three years+ and then the MOT exempt brigade to have an annual very basic minor inspection (via the annual service?), not just for mileage data collection but also tyre inspection etc. I am sure there are plenty of unroadworthy (tyres being the obvious one) MOT exempt vehicles out on the roads. Data transferred at point of sale/disposal mid term to DVLA. Pay monthly and then balance up or down the following year to catch a la SA system but spread over 12 months.

As far as the urban/rural mileage debate is concerned on that side, ULEZ's can cover most of that. Definition of urban, does your local market town fit into that? Where do you draw the line...? Obviously ULEZ's are a good money spinner otherwise TFL and other large cities would not entertain it.

The above could easily be implemented as blunt as it is.

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By jamesgeorgeball
04th Aug 2023 15:45

Mileage pricing is the clear winner. It is a perfect solution in its simplicity. There will be calls for allowances (I am OAP and must drive my wife for chemotherapy/I am disabled and my wife must drive me for treatment/my divorced parents live in Aberdeen and Exeter) but a determined (reforming) Chancellor should take the opportunity to introduce a new tax in the simplest form for a new situation.

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By Halex
04th Aug 2023 17:54

Wouldn't it be nice if our government (or rather the Whitehall powerhouses ) could actually learn from our European neighbours. Use tolls or vignettes so foreign cars contribute as well as locals, charge a road tax to cover basic administration of the system, and then match the income with spending on better public transport driving down the need to increase road capacity. Just think of the productivity gains and health gains if we walked to the bus stop to catch a bus. No need for he gym. We could even tackle the cost of living crisis by building decent cycle paths alongside every road and encouraging the use of electric bikes and scooter.
But I'm just getting carried away now.

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the sea otter
By memyself-eye
04th Aug 2023 20:40

I'm just going to travel everywhere on my narrowboat.. no 'speeding fines' no congestion charges, no MOT, no road tax, no parking issues, no 'drink boating', no road rage (difficult getting angry at 3mph).
What's not to like?

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By DKB-Sheffield
05th Aug 2023 00:21

Well, mileage from the MOT is likely to be the simplest option. Remember, if it's not simple, it'll take HMG >8 years to move from stage 1 to stage -10, cost 1.3B and, and be delivered - or likely not delivered - 6 years (and counting) late! I just wish I could think of an example to support my assertion...!

That said, there are a few other quick wins available...

1. VED (and a test) for cyclists. That's not anti-velo but, cyclists need perfectly surfaced roads, yet don't contribute to their upkeep (I used to be a keen cyclist).

2. Introduce a minimum (or fixed) charge for MOTs. Currently, there is no minimum - just a maximum of £54.85 (frozen since 2010). Of this, just £2.05 (purportedly rising to £2.08) is paid to DVSA (which I believe gets paid to Capita or some such organisation). In S. Yorks, a test averages at around £30-£35. There's plenty of scope to fix at the maximum and increase the Gvt take on a test by £10 per car, per year. Clearly, a flexed fixed rate by geographic area may be needed.

3. Increase, and rationalise VED - considerably. I have a 2L diesel Jeep and pay £30. My mother has a 6-month newer 1L petrol Polo (shopping car) and pays £180 (yes, we're in 2016/17 territory). Many clients have 2.5L Euro 4/5 vans and pay less than Mum at £140. Others (7.5T+ trucks) are around £165. We all use the same roads - whether we drive electric, gas, diesel, petrol, or cart & horse... so why the disparity?! £30 (or less) really is ridiculously (and unjustifiably) low.

4. Classic car lovers I know you're out there. I understand the reasoning behind 'no MOT' (whether I agree or not) but... why no VED? Besides, cars last longer than they used to. We're now 4 days on from qualifying 'classic cars' having prefix registrations! Luckily, very few Mini Metros have made it that far!

Incidentally, the talk of black boxes is interesting. I would say 98% (or more) of drivers has a black box already... Google certainly knows every journey I've made for many years courtesy of my Samsung device (other mobile technology is available)! It should be very simple to link with NFC to identify driver/ vehicle and ping mileage, speeding, heavy braking, time of journey, routes taken, even late night trips to remote car parks... to whomsoever needs to know this info!

Anyway, it's getting late! Interesting thread Rebecca. It will, however, be interesting to see what unfolds and what HMG will call the initiative. Perhaps MDD (Making Driving Digital) would be a good tagline?! I'll register that with the IPO tomorrow - just in case!

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Replying to DKB-Sheffield:
By coops456
14th Aug 2023 07:34

DKB-Sheffield wrote:

1. VED (and a test) for cyclists. That's not anti-velo but, cyclists need perfectly surfaced roads, yet don't contribute to their upkeep (I used to be a keen cyclist).


Nonsense. Cyclists contribute through all forms of taxation like anyone else. VED is not ring-fenced for road maintenance. VED is currently a pollution tax; cycles are zero emission and unlike EVs cause negligible damage to road surfaces.
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By moneymanager
06th Aug 2023 01:15

The imposition of electrical vehicles on a universal basis is, if you will pardon the pun, a non-starter, even if lithium, let alone all the other essential minerals, were used ONLY for car batteries there are known sources that would be adequate, there is no possible way that the near universal infrastructural change would be, in the round, beneficial to the environment, so what's it for, simple, capital destruction.

During the near two year long "two weeks to flatten the curve" nonsense the government emasculated the catering trade causing both the retail and supply chain destruction of millions of Poundsworth of perishable stock, the promise and subsequent withdrawal of reopening promises repeated that grievous destruction of operating capital leading many to never reopen.

Jaguar has committed itself to an early all electric position but there is every evidence that the EV market is collapsing, I have contacts in the motor trade who tell of vehicles being handed back, the collosal German manufacturers have recognised the headwinds having both committed themselves and sunk billions into this dead end "great on paper"technology and the shareholders pay; remember "You will own nothing, but you will be happy", they are doing what they say on the tin.

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By morganedge
08th Aug 2023 08:43

Taxing the vehicle or journey rather than the electricity might be the best way to deter the equivalent of red/laundered fuel fraud, but would it catch the untaxed, uninsured drivers? Would our system be compatible with Europe? How will we pay when grape picking in France? And how will we collect duty from European hauliers? (Or will all our goods fly in from Australia by then?)

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Replying to morganedge:
RLI
By lionofludesch
08th Aug 2023 08:54

Ah - you think that the DVLA would no longer keep a track of who owns vehicles if there was no VED ?

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Replying to lionofludesch:
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By morganedge
09th Aug 2023 07:30

Ha Ha - Fiddlers will fiddle, tinkerers will tinker and toerags will find new ways to avoid.

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