The Daily Telegraph has published an opinion piece calling for a debate over road pricing to plug the projected funding gap in fuel duty as more people switch to electric vehicles and internal combustion engines become more efficient.
In an article linked to the expansion of London’s Ultra Low Emission Zone, the newspaper argues that the Government could have chosen to block the decision to introduce the charge across the whole of the capital but “The problem ministers face here is that they are also looking at road pricing, not as a means of reducing pollution but in order to plug the huge revenue hole that will be created by the move from petrol and diesel fuels, which are taxed, to electricity, which isn’t.”
The paper says the issue of falling fuel duty, estimated to bring in around £35 billion in revenues to the Treasury “is not an issue to be ducked”.
“As long ago as 2009, a similar proposal was put up to the then Labour government but quietly dropped. Sooner rather than later this will have to be confronted or spending cut elsewhere to make up the shortfall,” the article states.
“This is an issue that a Tory or Labour government will need to deal with. But they have seen from the Ulez expansion just what a fight they have on their hands with the motoring public to justify the consequences of their green policies.”
(Picture – Yay Images)