The think tank of Tony Blair proposes to introduce a road pricing system per mile immediately to reform automobile taxes. This suggestion comes in the context of the possible end of the temporary 5p reduction on fuel tax by Rachel Reeves. The institute advocates for a simple system of 1p per mile for cars and vans, and 2.5p to 4p for trucks, to maintain expected tax revenues despite the shift to electric vehicles. The implementation of this measure, deemed essential by the chairman of the National Infrastructure Commission, would help avoid increasing road congestion in the era of zero-emission vehicles.
The think tank of Tony Blair urges the immediate introduction of a road pricing system per mile in the United Kingdom. This tax reform, proposed to replace the temporary reduction in fuel taxes, suggests charging 1p per mile for cars and 2.5p to 4p for trucks. The report highlights that this measure would allow the maintenance of current revenues generated from fuel taxes and address the shift towards electric vehicles. By 2050, this pricing could reach 10-12p per mile. The goal is to modernize the tax system related to automobiles and prevent increased road congestion.
road pricing reform per mile: a solution for the UK
The Tony Blair Institute proposes the introduction of a road pricing system per mile in the United Kingdom. This initiative aims to replace fuel taxes with fees based on the distance traveled by vehicles. With the rise of electric vehicles, which do not contribute to fuel taxes, such a reform would become inevitable. The report suggests a cost of 1p per mile for cars and vans, adjusted for heavy trucks.
the economic and political importance of immediate reform
Adopting a per mile pricing system now could prevent future economic issues. Currently, fuel taxes generate about £25 billion each year for the British Treasury. By instituting a per mile charge, this revenue could be preserved despite the gradual decline in fuel sales. The capping of fuel taxes could become a reality, but the adjustment to a per mile rate would increase to 12p by 2050.
potential challenges and public support
The implementation of such a system is not without obstacles. In 2007, a similar attempt under the previous government of Tony Blair faced strong public opposition. This time, conditions are different. The rapid emergence of clean technologies and the need to fund effective and sustainable infrastructure encourage some voices to support this change. Additionally, transport advocacy organizations like Campaign for Better Transport are campaigning for this transition to limit future road congestion.
