Charity for public transit In order to compensate for the revenue that is lost due to the loss of fuel duty revenue, Campaign for Better Transport is recommending that drivers of zero-emission vehicles should be charged based on the distance that they travel.
Chancellor Rachel Reeves has been encouraged to implement a pay-per-mile system for drivers in the United Kingdom in order to prevent a “black hole” from occurring as a result of lost revenue from fuel duty.
The Campaign for Better Transport (CBT), a charitable organisation that works to improve public transport, has proposed that drivers of zero-emission vehicles (ZEVs), such as electric cars, should be taxed based on the distance they travel. They argue that this would garner support from the general public.
According to the plan, drivers who had a zero-emission vehicle (ZEV) prior to the implementation date would be exempt, which would encourage the transition to electric vehicles.
Taxes collected from the sale of petrol, diesel and other fuels bring in approximately twenty-five billion pounds for the Treasury each year.
This number is anticipated to decrease as an increasing number of motorists switch from conventionally powered vehicles to zero-emission vehicles.
Previous governments, on the other hand, assessed the feasibility of imposing road pricing, also known as per-mile charges, and concluded that it would be too politically toxic.
Silviya Barrett, the Conservative Party’s director of policy and campaigns, has stated that the next Chancellor faces a looming abyss. She can avoid it in a fair and popular way. This situation will only get more pressing in the future; therefore, she should start right away.
“It should be cheaper to drive a zero-emission vehicle than a more polluting vehicle, but it’s only fair that these drivers should pay a share, and a pay-as-you-drive model can achieve this.”
Ms. Barrett wrote to Ms. Reeves, advocating for a “simple charge” based on “regular odometer readings” and stating that “ZEV drivers should fairly contribute towards vehicle taxation.”
According to her press release, “We fully appreciate that the opposition and some representative groups would perceive such a change as difficult and criticize it.”
“However, our research demonstrated the general public supports such a move.”
Rishi Sunak, the prime minister at the time, decided in September of the previous year to postpone the ban on the sale of conventionally powered new vehicles from 2030 to 2035. The Labour Party has committed to reverse the decision.