Committees

Evidence session: road pricing

19 October 2021

As the share of electric vehicles in new car sales grows, government revenues from fuel duty and Vehicle Excise Duty will decline. Based on unchanged fuel duty and VED policies, the Office for Budget Responsibility’s July report estimated a review loss of 1.5 per cent of GDP, equivalent to £31 billion in today’s terms, once the entire vehicle stock has been replaced.  

Background

Ending the sale of new petrol and diesel cars and vans by 2030 is part of the Government’s Ten Point Plan for a Green Industrial Revolution, announced in November 2020. All vehicles are expected to be 100% zero emissions from 2035. In July, the Transport Committee urged Government to create a clear policy framework to ensure industry can deliver the vehicles and charging infrastructure required to deliver the Government’s ambitions for zero emission vehicles.  

As the Treasury looks at a fiscal black hole, one potential solution is a new system of road pricing. Several examples of road pricing models already exist in the UK such as individual toll roads to zonal charging; other models could include flat rates per mile, geographic or toll-based charging, time-based rates and dynamic rates.  

Purpose of the session

Ahead of the Autumn Budget on October 27, the Transport Committee will consider: 

  • The case for and against road pricing, and the policy objectives it might be used to achieve;  
  • Possible pricing models and how revenues from these might be spent; and 
  • How any system of road pricing could be implemented, considering what we can learn from other country’s systems.

Witnesses 

Wednesday 20 October

Panel 1

From 9.30am  

  • Duncan Buchanan, Policy Director (England & Wales), Road Haulage Association
  • Steve Gooding, Director, RAC Foundation 
  • Toby Poston, Director of External Affairs, British Vehicle Rental and Leasing Association
  • Dr Nina Skorupska CBE, Chief Executive, Renewable Energy Association 

Panel 2, from 10.20am

  • Alistair Hunter, Highways Business leader, Arup
  • Professor Phillip Goodwin, Senior Fellow, Foundation for Integrated Transport 
  • John Siraut, Director of Economics, Jacobs

Panel 3, at 11.10am

  • Mike Williams, Director for Business and International Tax, HM Treasury

A Government representative has been invited to attend. 

Further information

Image: Parliamentary copyright