Taxes and Charges on Road Users

HC 103, Sixth Report of Session 2008-09 - Report, Together with Formal Minutes, Oral and Written Evidence

Author:: House of Commons - Transport Committee
Publisher:: TSO (The Stationery Office)

Taxes and Charges on Road Users (HC 103)

Government spending on roads has almost doubled in real terms since 1999-2000. In this report, 'Taxes and Charges on Road Users (HC 103)', the Transport Committee supports greater investment in transport, including the road network.

The Committee concludes that expenditure on transport will need to rise further as part of the Government's efforts to stimulate the economy. The Government must improve the way in which it justifies taxes on road users to rebuild public trust.

The Committee's conclusions and recommendations include:

Road investment should be justified only on the basis of wider transport policy objectives, need and benefits.
Hypothecation for transport taxes provides a poor basis for public expenditure decisions and ignores the social costs associated with road use - policing, accidents, pollution and carbon emissions.
There is a case for earmarking revenue from specific local schemes for spending in a given geographical area when such an approach will earn public acceptability and help ensure fairness.
In the absence of any plans to introduce road pricing for cars, Government should resurrect proposals for a low-cost pay-per-mile lorry charge for UK and foreign-registered vehicles.
Without some form of toll or vignette system, UK freight operators will continue to face unfair competition from foreign-registered vehicles able to take advantage of cheaper diesel.
Access to funding through the Transport Innovation Fund should no longer be tied to implementation of road pricing projects, since such schemes have proved unacceptable to many local electorates unwilling to vote for additional charges.
Government should develop voluntary road pricing schemes, where Vehicle Excise Duty or fuel duty may be traded for per-mile charges.
The use of parking charges for wider policy purposes is also questioned.

Extent	292 pages	ISBN	9780215540300
Size	A4	Price	£24.50
Binding	Paeprback	Published	24 Jul 2009
Availability	Colour copy: 3 - 5 days	Delivery	Delivery options and charges