Pay-as-you-go driving - Transport policy is doomed without it

October 19, 2022

road pricing

Transport policy without road-user charging is doomed to fail. Essentially this is because roads are free – and when anything is free there's a tendency for it to be overused. In the case of roads, this leads to congestion. It's clear motoring taxation needs to change in a way that is fair and sustainable.

Pay-as-you-go driving is simply a method of charging motorists for use of the road. At present use of the road network is free. A motorist driving an electric car pays no tax or charge for using the roads – no fuel tax because no petrol is used and no vehicle excise duty because electric vehicles are zero rated. But electric vehicles still use roads and roads are valuable. As more people switch to EVs, tax revenues will plummet.



Research by The Campaign for Better Transport has demonstrated that a pay-as-you-drive scheme could be a smarter, fairer alternative than our current system. The charge could vary based on how polluting a vehicle is, so EV drivers could still be charged less. There's also the option of charging drivers less for journeys where there's no public transport alternative. And for rural drivers, there could be a reduced charge or a tax-free mileage allowance.

And of course, a portion of the money raised should be invested in public transport, walking and cycling, to give people better, more affordable alternatives to driving.

The idea pay-as-you-go driving is not controversial. The same research showed that half of people supported replacing fuel duty and vehicle excise duty road pricing, while only 18 per cent opposed it.

Let's show politicians that pay-as-you-go motoring can be popular and fair. The Campaign for Better Transport has set up a simple form you can use to send their research to your MP, along with a supportive message.

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