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A potential pay per mile fee to replace road tax.

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BingMan

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Any charging system would need to discriminate between driving on a quiet road where there is no alternative transport and driving on a heavily congested road through a residential area, past schools etc., and where there are plenty of public transport alternatives.
The current charging system - tax on fuel - doesn't do that, so why should the replacement?

The government has long been looking at a pay as you drive system. The loss of fuel duties is equivalent to around 6p increase in income taxes. There are two possible options. One is a simple mileage based scheme, that a number of US states are looking at. The problem with that is how do you know if those miles are driven on public highways or in another country - a major issue for Northern Ireland. The second is a GPS based system similar to pay as you drive insurance policies. This would allow you to do clever things like linking charges to routes, time of day, level of congestion etc. The problem is the cost of billing and collecting the charge. Fuel duty is incredibly cheap to collect and difficult to avoid. GPS would possibly cost 10-15% of the revenue collected and subject to massive potential avoidance.
There is a third option: accept that 6% increase in income tax. It would be revenue and payment neutral and would need no upfront investment
 
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PGAT

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People who regularly cycle are likely to be healthier so won't cost the NHS as much in the long term
And has immeasurable mental health benefits from being outside and getting fresh air
 
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I cannot find the article, but roads are paid for out of general taxation, the article contained the information that if roads were paid for, not out of general taxation, but as a stand-alone tax to the motorist, the "road tax" would not be the modest sum today, but would be well over £1000 per car
Total road expenditure in England is about 8.5 billion , and 40 million cars in the UK in the UK, if that scales with England's share of the population (80%), that gives you 32 million in England giving you about £265 of spending per car. The article you remember was probably talking about America.

I think the total income from road vehicle taxes far exceeds that required to cover all peripheral/consequential motoring costs (hospital treatment, pollution etc). It is why use of Electric Vehicles will have to be taxed sooner rather than later - the state won't survive without the income !.
If income MUST come from the same source, what happens if public transport takes up a higher share as result of EV's generally being more expensive , would you keep the same insistence of not raising any taxes elsewhere, or do any money printing, and start increasing the tax on people's bus and train tickets?
 

edwin_m

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I was more just thinking of all the tax they've paid towards it over the years
That argument doesn't stand up. Reducing road traffic reduces accidents (not only to drivers but also to passengers and vulnerable road users) so reduces NHS costs which everyone pays via general taxation.
Do rail passenger fares cover the costs of policing the rail network? Do rail fares cover the cost of NHS treatment for anyone injured on the railways ? Since the rail network only survives due to huge subsidies, the answer is no.
British Transport Police is funded by a levy on the rail industry.

The number of rail accidents is vanishingly small compared with road accidents, either in total or per distance travelled, so the NHS costs incurred are correspondingly less too.
I think the total income from road vehicle taxes far exceeds that required to cover all peripheral/consequential motoring costs (hospital treatment, pollution etc). It is why use of Electric Vehicles will have to be taxed sooner rather than later - the state won't survive without the income !.
You may think that, but where is the evidence?

Another more arguable factor in quantifying the true cost of car use is the large proportion of roads paid for by local authorities. They have to be provided to allow essential access to properties, but they also enable car drivers to travel anywhere and more vehicles using them means more maintenance. So they could be considered to be another subsidy to motoring.
 

tomuk

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That argument doesn't stand up. Reducing road traffic reduces accidents (not only to drivers but also to passengers and vulnerable road users) so reduces NHS costs which everyone pays via general taxation.

British Transport Police is funded by a levy on the rail industry.

The number of rail accidents is vanishingly small compared with road accidents, either in total or per distance travelled, so the NHS costs incurred are correspondingly less too.

You may think that, but where is the evidence?

Another more arguable factor in quantifying the true cost of car use is the large proportion of roads paid for by local authorities. They have to be provided to allow essential access to properties, but they also enable car drivers to travel anywhere and more vehicles using them means more maintenance. So they could be considered to be another subsidy to motoring.
The local authorities spent about £2bn on roads maintenance this is dwarfed by taxes raised from motorists.

Here are the transport spending figures for the last five years.
4.5 Transport32,70134,42049,38744,68543,578
of which: national roads4,8205,5746,1535,4385,660
of which: local roads5,3045,6196,7975,8675,468
of which: local public transport2,4842,4037,1994,9834,344
of which: railway18,22618,28527,05225,86225,942
of which: other transport1,8672,5392,1852,5362,163
Source: Public Expenditure Statistical Analyses 2023 https://www.gov.uk/government/statistics/public-expenditure-statistical-analyses-2023

Vehicle Excise Duty and Fuel Duty run at about £35bn a year not to mention the other taxes motorists pay such as VAT and Insurance premium tax. So your assertion that motorists aren't paying their way doesn't stand up.
 

edwin_m

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The local authorities spent about £2bn on roads maintenance this is dwarfed by taxes raised from motorists.

Here are the transport spending figures for the last five years.
4.5 Transport32,70134,42049,38744,68543,578
of which: national roads4,8205,5746,1535,4385,660
of which: local roads5,3045,6196,7975,8675,468
of which: local public transport2,4842,4037,1994,9834,344
of which: railway18,22618,28527,05225,86225,942
of which: other transport1,8672,5392,1852,5362,163
Source: Public Expenditure Statistical Analyses 2023 https://www.gov.uk/government/statistics/public-expenditure-statistical-analyses-2023

Vehicle Excise Duty and Fuel Duty run at about £35bn a year not to mention the other taxes motorists pay such as VAT and Insurance premium tax. So your assertion that motorists aren't paying their way doesn't stand up.
Thanks for those figures. However, these are direct expenditure and my point was about the externalities of health, policing, environmental damage etc. I have no idea how much these are but I don't think we can just ignore them.
There is a third option: accept that 6% increase in income tax. It would be revenue and payment neutral and would need no upfront investment
That would be an absolute disaster. Motoring would get cheaper so it would increase, subsidised by everyone whether they drove or not. Either the increase in motoring would be choked off by congestion, affecting bus services, emergency vehicles and those that have to drive, or the government would end up spending a lot more building more roads in an attempt (almost certainly unsuccesssful) to cater for it.
 

AM9

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The current charging system - tax on fuel - doesn't do that, so why should the replacement?
Tax regimes are more than just gathering revenue for running the country, - they can and are used to modify behaviour of the population. With increasing demand on the road system, just building more is not a solution, so tax will, I believe become a 'nudge' tool to encourage more active travel and use of public transport. In my opinion, revenue from private car use should appropriately be applied to improve public transport and support for active travel.
 
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Tax regimes are more than just gathering revenue for running the country, - they can and are used to modify behaviour of the population. With increasing demand on the road system, just building more is not a solution, so tax will, I believe become a 'nudge' tool to encourage more active travel and use of public transport. In my opinion, revenue from private car use should appropriately be applied to improve public transport and support for active travel.
If you succeed and put cars out of use entirely, you are stuck with the same problem again.
 
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With all those cameras installed for ULEZ it makes sense to charge motorists on a day to day basis for distance based road use. An online way for motorists to check and pay plus an admin fee letter if payment is left too late NOT a fine until some point after that letter is ignored.

This really would need to work on a national basis but then most cities are getting ANPR cameras for one purpose for another (usually a ULEZ). Plenty of ANPR on motorways already. It does not have to be perfectly accurate. It does not matter if country lanes are not monitored. So a first and last sighting by ANPR could then be used to arrive at an itinery with any sightings in between contributing to the exact route (residential area, main road or motorway). I cannot see all the money spent on cameras not being used for road pricing. I don't mind road pricing - provided they drop the fuel tax. I don't do many miles so I would love to drop the road tax.
Dart charge isn't that hard for people to understand, if you want to be extra easy you send a letter to the registered address after the journey and give people a variety of ways to pay. Cities can have their own systems without everything having to be run through a government IT system

Who said anything about "putting cars entirely out of use"?
Well whatever reduction , you still end up with the same problem if successful at your aims, which is why I don't really the idea of punitive/nudge taxation even if I agree with the aim behind it.
 

AM9

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Well whatever reduction , you still end up with the same problem if successful at your aims, which is why I don't really the idea of punitive taxation even if I agree with the aim behind it.
Punitive taxation has been around for centuries, so expect it to stay for a few more, (if we've got that much time left before society breaks down. Best to recognise that now.
 

tomuk

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Thanks for those figures. However, these are direct expenditure and my point was about the externalities of health, policing, environmental damage etc. I have no idea how much these are but I don't think we can just ignore them.
Does the net £25bn a year income to the exchequer of VED and Fuel Duty not account for you externalities. On specific areas the NHS recovers over £170m pa from personal injury accident insurance claims, police issued FPNs raised over £250m pa and the existing London ULEZ raised over £200m last year.
 

edwin_m

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Does the net £25bn a year income to the exchequer of VED and Fuel Duty not account for you externalities. On specific areas the NHS recovers over £170m pa from personal injury accident insurance claims, police issued FPNs raised over £250m pa and the existing London ULEZ raised over £200m last year.
I don't know. But nor apparently does anybody else.
 

stuu

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Does the net £25bn a year income to the exchequer of VED and Fuel Duty not account for you externalities. On specific areas the NHS recovers over £170m pa from personal injury accident insurance claims, police issued FPNs raised over £250m pa and the existing London ULEZ raised over £200m last year.
There are a variety of estimates, although it would be fair to say they aren't necessarily from unbiased sources. £48bn is the most recent figure I can find. Academic sources seem to agree that the figure is higher than the tax take, but how much higher is a matter of methodology. Putting a financial value on noise pollution is not an exact science
 

Bletchleyite

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Lots of dumb ideas have been around for centuries

Nothing dumb about using taxation to reduce the use of cars in the places they cause most harm and where good alternatives exist (urban areas), while making it cheaper to use them in places where harms are lower and no alternative exists (rural areas). Seems very fair to me.
 

tomuk

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There are a variety of estimates, although it would be fair to say they aren't necessarily from unbiased sources. £48bn is the most recent figure I can find. Academic sources seem to agree that the figure is higher than the tax take, but how much higher is a matter of methodology. Putting a financial value on noise pollution is not an exact science
Well if we take £48bn as the full that means roads are getting the same level as subsidy as rail then. The other element that seems to be being ignored in this talk of externalities is the amount of economic activity that is enabled by road transport. Surely that far out ways any cost.
 
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Nothing dumb about using taxation to reduce the use of cars in the places they cause most harm and where good alternatives exist (urban areas), while making it cheaper to use them in places where harms are lower and no alternative exists (rural areas). Seems very fair to me.
I'd rather do it via differentiating between rural and urban dwellers in road tax , and letting city councils charge whatever road tolls they like, rather than either putting a camera on every corner (very expensive before getting into privacy concen) or getting into battle with the GDPR with a black box in every car.

There are a variety of estimates, although it would be fair to say they aren't necessarily from unbiased sources. £48bn is the most recent figure I can find. Academic sources seem to agree that the figure is higher than the tax take, but how much higher is a matter of methodology. Putting a financial value on noise pollution is not an exact science
What sources? Genuine question I'm interested in reading through them.
 

Bletchleyite

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I'd rather do it via differentiating between rural and urban dwellers in road tax

That's not as effective, though, because your rural dweller can come into town and drive with impunity.

My preferred options, a parking tax (so abolition of all free urban parking), an urban driving tax or road pricing, mean a rural driver is encouraged to park up at a suitable location and continue their journey by public transport (i.e. railheading or park and ride). People already do this in London because (a) parking costs a fortune, (b) driving is grim and (c) there's a congestion charge, so this proves the efficacy of this approach.

Road pricing is probably the fairest of the three, because an urban dweller who only uses their car to go out of town to a rural location won't pay much, whereas with parking taxation or blunt instruments like zonal congestion charges they get whacked regardless of what they do that day.
 

PGAT

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How about embracing the rural tax and using it to improve transport situations there?
 
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Road pricing is probably the fairest of the three, because an urban dweller who only uses their car to go out of town to a rural location
This would make out of town retail parks even more attractive. Plus the reason why I favour councils running any potential road pricing schemes is they know their own geography better than Westminster and can manage stuff better than some blunt demand algorithm or some civil servant looking round on Google maps
 

Bletchleyite

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How about embracing the rural tax and using it to improve transport situations there?

In very rural areas, the car (ideally EV) is the most cost-effective and least damaging mode of transport. Running diesel buses around with two people on them is worse on just about every measure.

This would make out of town retail parks even more attractive.

That can be managed other ways such as via planning law. But if you've got a lot of people driving in from rural surrounds to e.g. a supermarket, the outskirts IS the best place for it.
 
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That's not as effective, though, because your rural dweller can come into town and drive with impunity.

My preferred options, a parking tax (so abolition of all free urban parking), an urban driving tax or road pricing, mean a rural driver is encouraged to park up at a suitable location and continue their journey by public transport (i.e. railheading or park and ride). People already do this in London because (a) parking costs a fortune, (b) driving is grim and (c) there's a congestion charge, so this proves the efficacy of this approach.

Road pricing is probably the fairest of the three, because an urban dweller who only uses their car to go out of town to a rural location won't pay much, whereas with parking taxation or blunt instruments like zonal congestion charges they get whacked regardless of what they do that day.
I do like your parking charges idea. It would need the least new infrastructure, wouldn't exempt old cars , wouldn't double tax people who still pay fuel duty and gives the city itself the final say. I still don't want it to be used as a 1 for 1 replacement for fuel duty tax, you'd be creating a peverse incentive for the government where increasing public transport use , even on profitable routes, would be decreasing it's revenue

What percentage of the population are we calling "rural"?
This question is hard to answer, which is why I think devolving the question to district or borough councils is the best idea, with the way political leanings are between cities, towns and the countryside, you'd get the same result as if Westminster road priced based on population density anyway
 
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AM9

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Neither did you pointing to a policy being round for a long time implying it means I shouldn't criticize the idea.
You criticising it or not makes not one iota difference, tax is there for more than just funding other public expenses, - it has been and currently is being used successfully to modify behaviour of groups of citizens. London is a prime example of that as @Bletchleyite says in posts #136 & #139, rural areas generally don't need specific taxes, but entry volumes into central London has been reduced by congestion charges as well as reduced parking and local traffic congestion. I can't criticise that success.
 

tomuk

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This question is hard to answer, which is why I think devolving the question to district or borough councils is the best idea, with the way political leanings are between cities, towns and the countryside, you'd get the same result as if Westminster road priced based on population density anyway
In my experience devolving something as complicated as you suggest to district\borough councils is a non starter. They are at best left to entering Britain in Bloom contests or installing Geoff Capes novelty shoe buffs on Marine Way. There is definitely a place for more devolved governance in England but district and borough councils aren't it.

You criticising it or not makes not one iota difference, tax is there for more than just funding other public expenses, - it has been and currently is being used successfully to modify behaviour of groups of citizens. London is a prime example of that as @Bletchleyite says in posts #136 & #139, rural areas generally don't need specific taxes, but entry volumes into central London has been reduced by congestion charges as well as reduced parking and local traffic congestion. I can't criticise that success.
What success in central London?
 
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You criticising it or not makes not one iota difference, tax is there for more than just funding other public expenses, - it has been and currently is being used successfully to modify behaviour of groups of citizens. London is a prime example of that as @Bletchleyite says in posts #136 & #139, rural areas generally don't need specific taxes, but entry volumes into central London has been reduced by congestion charges as well as reduced parking and local traffic congestion. I can't criticise that success.
First of all, tax isn't the only way to fund expenses. I hate to sound like a MMTer , but their is numerous ways to sort out the financial issues. You can print more money, borrow , kick up taxes elsewhere or cut spending else where, all of these have different trade offs , but it's not non-negotiable every tax is replaced 1 for 1.

I support localized schemes, what I don't think is a good idea some Westminster impose national scheme which I think will be clumsy and expensive to implement, nor that its non negotiable that all the revenue that previously came from fuel duty must be taken from electric drivers, and other methods of funding cant be used.

I know what I'll say on here doesn't matter, what you says doesn't either but this is a discussion forum and people will discuss things
 

edwin_m

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First of all, tax isn't the only way to fund expenses. I hate to sound like a MMTer , but their is numerous ways to sort out the financial issues. You can print more money, borrow , kick up taxes elsewhere or cut spending else where, all of these have different trade offs , but it's not non-negotiable every tax is replaced 1 for 1.

I support localized schemes, what I don't think is a good idea some Westminster impose national scheme which I think will be clumsy and expensive to implement, nor that its non negotiable that all the revenue that previously came from fuel duty must be taken from electric drivers, and other methods of funding cant be used.

I know what I'll say on here doesn't matter, what you says doesn't either but this is a discussion forum and people will discuss things
That ignores the behaviour modification issue mentioned in the post you quoted. Less tax on driving means more driving, unless something else is done to discourage it, and it still has many adverse consequences even if the vehicles in question are now electric (another one nobody has mentioned is the need to invest in more electric generation and transmission). There's a risk of more traffic anyway even if the tax take EVs is identical to that on IC vehicles, because EVs, once purchased, are cheaper to run.

Autonomous driving, if it happens, throws another factor into the mix. People could instruct their cars to drop them off in the city then continue empty to some free or cheap parking location before returning to pick them up. To some extent that defeats any attempt to replace fuel tax revenue with parking charges, as well as providing another reason why congestion increases in urban areas.
 
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