posted 6 years ago

Cost Of Motoring Set To Rise?

Government Strives To Maintain Revenue

The Government is considering proposals that could make owning cars more expensive for millions of motorists. But why? HM Treasury, of course, has to raise money to maintain and improve roads in the United Kingdom. Vehicle Excise Duty currently contributes about six billion pounds per-year but this could fall in real terms in the near future. This is because cars registered from March 1st 2001 are taxed according to their carbon emissions. The least polluting (100g/km of carbon or less) can be taxed for free whereas discs for gas guzzlers cost considerable sums. Motor manufacturers have therefore responded by making cars more environmentally friendly, so lots of big sellers are now exempt from road tax charges. These include the: Ford Fiesta Style 1.5 TDCi 3dr, the Vauxhall Corsa Exclusiv 1.3CDTi 16v ecoFlex Start/Stop 3dr, and the Volkswagen Polo BlueMotion 1.2 TDI. Every year more and more cars hit the market with low emissions - so road tax has to evolve if it is to contribute a meaningful sum to the Government's coffers.

Proposals To Replace Vehicle Excise Duty

One proposal - the details of which are sketchy - is a two-tier Vehicle Excise Duty. Drivers would pay a small sum to access local routes and minor A-roads, but those who travel on motorways and larger A-roads would pay more. How much could vary according to the route's popularity and/or the weight of – or pollution from – their car. Inevitably, this system could make motoring more expensive for some. The extra cash might then be paid to private companies who would maintain and enhance certain routes. Much like the London Congestion Charge, this expense could be enforced by automatic number plate recognition so motorists could not pay the lesser tax then sneak onto the M3. Surely, though, this two-tier system would force traffic into urban areas which might cause gridlock. Another option is to replace Vehicle Excise Duty with one-off upfront charges on new cars. But this could be problematic too. Why? Because it would make new cars more expensive which would hurt sales. This, of course, could affect associated industries too. Furthermore, is it fair that new buyers pay tax whereas used buyers pay nothing? Perhaps the Government should Scrap Vehicle Excuse Duty and tax fuel more. Those who travel huge distances on motorways - or have gas-guzzlers – would pay more than those who occasionally pop to the shops in a hybrid. Taxation could be set to maintain the current income and be distributed in whatever way best serves the network. Or is that too simple?

From the sound of it people on this forum have already capitulated to higher motoring costs whether added to our expensive fuel which is only expensive because of tax and speculation by the rich cartels, or in other ways which will force many people off the road. We have an expensive road fund licence which when introduced it was stated that all revenue raised would be spent on the roads, from which massive revenue is raised from the motorist and the system was not broken and it didn't need fixing until the greedy Labour government dipped in and used the funds for other daft schemes, letting our roads deteriorated to third world status, while the motorist was used as a cash cow. Any proposal to pay tolls must be opposed, because we will then be soaked by high fuel costs, and by the County Councils who will charge differing prices to use minor roads and the new technology will take money straight from your bank account while the big brother will know exactly where you are. Our motorways and roads like the A1 will be sold to foreign investors who will use us to subsidise their own infrastructure just like the French and Germans have done with our energy companies. To bring us out of recession we need capital building projects in order to modernise our transport system we must build new roads and rail links and bring down the cost of rail travel then the public will use public transport which in our country is far behind that of the continent.

I like the idea of no road tax but put a bit more on petrol. But (am I a cynic )how long before this government managers to screw us for twice as much as now and the roads are just as bad. + more toll roads hence screwing us even more.

I think it would be better payed on the fuel as those who do not have road tax would then pay without fuel no car usage except I do not know how one would get round those who are excempt from road tax duty

How ridiculous. It just proves the point that there is no situation so bad that politicians cannot make it worse ! For goodness sake take the simple, obvious anaswer, scrap road tax and put it on fuel. Fairer all round. Those that use the roads most pay most.

Getting rid of road tax and increasing tax on fuel a little more is sensible. It's cheap to collect and is directly related to how many miles you travel. It doesn't have any impact on congestion so we should introduce more toll roads along side congested sections of motorway like the M6 toll. I drive 20,000 miles a year so would be worse off with this but not having the hassle of taxing my car each year would be a small benefit and I think it's only fair that I pay more than someone who drives 10,00 miles. What I do object to is the attrocious state of British roads when we pay so much in fuel duty. I must have spent well over £1000 this year because of pot holes (tracking, damaged tyres etc), quite happy to pay the tax if it means better roads. At the moment I don't see it.

No road tax and put the tax on fuel,could have been done years ago only for the big oil companies said they were not tax collectors,but they do collect the taxes aready and every day of the week when you fill up.

If like me you live in a rural area with no bus service we need the car. Why so many different taxes on vehicles. Must cost lots to collect them all. Just one tax and have done with it.

A tax on roads, a tax on cars,fuel,flights,fags,booze, income,council and VAT. They are really taking the Piss or will they tax this soon.....or maybe they do with their return to sewer charges !!

Assume an ave car pays £200 a year in road tax, does 50mpg & 10000 miles. That's an extra 2.1p per litre required to reclaim that same amount of money. Any additional revenue to cover haulage companies would be realised from euro users, vosa & dvla savings. I agree with the fuel rise, and before anyone thinks i've got it easy, then don't, because I've an old petrol rover that does 40mpg & I do 17000 a year, so I'd be worse off.

just one more way to more money out of the car drivers. dont you think we pay to much tax on fuel ect.make the overseas drivers pay t use our roads they fill up befor they come over ere so pay no tax on fuel.... what are they going to come out with next make you pay more at night to pay for the street lights???

Fuel tax is much fairer and would tax everyone who used the roads, including foreign visitors and all those people who drive illegally without road tax. It would save the country millions not having to send reminders, have tax discs printed, pay people to police offenders etc. If we can see this is a good ide, why can't the govegovernmen.?

I think it should be taxed on fuel, tho I struggle to pay what it costs me to fill the car now! I think this is the fairer option, use the roads more.... pay more, I travel about 60 miles a week.but pay the same as someone who does 300 a wk.

I agree with principle but current RFL and taxation including fuel tax and VAT must be scrapped first with new mileage rates or bands published for discussion and ideally a public referendum with appropriate allowances for remote communities and also certain categories of disablement necessitating use of a car. Think of savings no VAT calculations no need for DVLA or VOSA taxation departments, less use of telephone enquiries reduced documentation and reduced policing of car tax dodgers and offenders use of the car means all taxation is automatically applied unless of course you screen the sender units or fix faklse plates????????

I am retired and invested in the most econo,ical car I could, Focus Econetic, because my family live 2.5 and 4.5 hours away. I could not afford to visit them if this was imposed.

Okay, so the people who belive that high milage users should pay more through fuel duty, maybe you can find me a job closer to my home to prevent me paying any more than the £3000 pounds per year that I pay now to get to work. No it's not by choice, it's by necessity.

Fairness? Balderdash. The government refuse to make any concession as promised for older hardly used vehicles 1973 on, so how do you expect any promise/scheme to be other than another 'con',

Provided the Government scrap road tax, great idea. This means those road users who drive more than the average annual mileage, will be worse off, which is a step in the right direction.

Scapping VED and increasing the tax on fuel is the only fair way to levy the money needed.With the exception of commercial vehicle operators,everybody would have to pay their share according to their annual mileage and their car's engine size. A small engined car travelling 60,000 miles p.a. pollutes more and causes more road wear than a larger engined car that covers 2000 miles p.a. Foreign tourists would no longer use our roads for free and the tax could be collected at no extra cost utilising the existing collection arrangements.

another way to sqeeze more money out of our pockets it seems thats all they got to do what happens if none of us had a car?whats going on

Do not be fooled. The six billion pounds in taxation that the motorists currently pay is not enough even though it is not used for transportation.

Once again the poor motorist is expected to pay for the monumental financial errors made by government. I the revenue from road tax had been spent of "roads" then we would probably have the best road network in the world. The suggestion that an additional fuel duty could replace VED is a complete non starter! We already pay the exchequer billions each year in fuel duty which seems to be used keeping our parliamentarians rich!!!

The idea is a great one, but the proposal is all wrong! Contact me to review my proposal, which I have sent to the opposition (Labour Party). Knowing the current government, the implications have not yet been fully thought through!

...and once again, it's those trying to get to work on low wages who suffer - the roads, along with everything else, become the domain of the wealthy! I'm sure the rich will love this idea - the only cars who will be able to afford to use the roads will be new ones - yet those looking for work will still be berated for not travelling miles to find a job no doubt! The current guidelines for an 'acceptable' journey to work according to the DWP/Jobcentre+ are 1 hour each way. How silly to add to the difficulties many people already experience with high transport costs, petrol and now the possibility of paying to use the roads.

The charges should be based on post codes like so many other things now. If your in an area of poor A & B class roads then there should be no extra charges- In Switzerland you can buy a motorway ticket and a sticker to allow you to drive on the motor way therfore they pay a little more for the privallige of having good roads.

Hi Colin, The Road fund licence was the original method of taxing us in the 1920s to maintain the roads. This has been decoupled by various sneaky governments to the "VED" as a way of diverting our contributions away from the roads into the general exchequer. You only have to see the disaster this policy has caused in Portugal where newly tolled roads are now disserted and the remaining road network overcrowded. It's a total disaster for the government there as the whole exercise has cost billions of euros.

Adding to the cost of fuel is the only fair way to go. Road hauliers could be made exempt to prevent costs being passed on as inflation in the shops. Toll Roads are a ridiculous suggestion unless they charge by individual CO2 output of each vehicle. If not, it means buying a low polluting vehicle is a complete waste of time.

The Road Fund Licence fee was made dependent on fuel consumption to change the behaviour of motorist and manufacturers to encourage the use of cars with lower fuel consumption. Now that behaviour has been achieved, and revenues are (predictably) down are we rewarded? No we are penalised by a general increase in Road Tax. Toll Roads are an exercise in extortion. Tolls bear no relation to the cost and just drive traffic elsewhere. Do not ever expect fairness from government.

Hang on a moment Gov. We the motoring public have already paid for the existing roads with our taxes, something like 37 times the amount actually spent on the roads. If the Gov would consider building a whole new tolled motorway network as has happened in Ireland (using our money). That way we could get out of this depression and allow some of us to travel around the country at an additional cost thus relieving the stress on the original road network.

The answer is as simple as the ABC. Scrap the VED entirely and charge an extra few pence on the price of petrol and diesel. That way everyone will have to pay according to the amount of tuel that they burn. Gas guzzlers then pays for their useage and so do foreign road users. NO-ONE can escape the charge that way! Also the Government needs to be stricter on uninsured drivers no matter who they are or where they come from! Make the borders agency work for their living checking people when they enter this country. ALSO make the PM take back our right to make our own laws and NOT the EU dictate what we do on this small island! That doesn't mean we have to leave the EU either!

Scrapping the VED has always been looked at as good replacement but has always been turned down by whoever is in power. But then they were thinking of increasing the tax by a spectacular amount which would not sit well with voters. If the tax had been a more honest figure it would fly but no Government gives it's citizens a choice.

A suggestion to the government: When they scrap the VED, name the successor "The Road Fund Licence". That way with our "modern" "transparent" government, we could insist car taxes are used to improve our broken roads?

I agree with mike. Tougher laws for EU drivers. The dvla should be logging all vehicles entering and leaving the uk. There are too many eu drivers on our roads with no licence insurance tax mot. What happens when they have an accident? We have to go through the uninsured losses bureau and we get stung for it. This country is a joke. The British people are now a minority in their own country because the government are too soft and too scared of upsetting none British people. David cameron is a twat and needs to grow some balls

Completely fed up with governments continually trying to find means of making running a car more and more expensive.

i would like to see a clamp down on EU cars that do not have a uk tax disc. i know of one which i reported first to the DVLA as being owned by a permenant resident, been here longer than 12 months and no tax, probably no MOT and as for insurance .... the DVLA said they have no record of it arriving or its existance and told me to report it to the police. i did and they took all the details but it is still driving round with no tax. this is what should be targeted not the honest tax paying motorist.

Higher fuel tax wouldn't work as electric cars will plug into domestic mains. Plate recognition will be open to abuse and will not account for EU number plated cars. Present tax disc system is still best option, they just need to raise the bar for low emission vehicles.

This is all very well but what of those people who cannot afford more modern vehicles which use less fuel let alone pay for the high cost of fuel as it currently stands? I have a 52 plate Renault Laguna which is a 1796cc engine it costs £140.00 for six months road fund licence and does a mere 26 miles to the gallon! I also own a 2.5D Ford Transit which does about 50 miles to the gallon and costs £90.75 per six months for the road fund licence. It is diesel and this is nearly £1.50 per litre The Petrol is 1.40 per litre. There seems to be something wrong with this logic but either way the costs are extortionate. Quite frankly if we had a more responsible team in government we would not have these issues. So they need to stop wasting money and put their own house in order first. Charging to use the public highway is not the answer and putting it into privatisation spells disaster as they will charge what they like continuously increase the costs and very little will be done to improve Britains roads. The government needs to take responsibility for the neglect and sort these problems out now!

This another attempt at a big scam by Messrs Cameron and Osborne. Those of us who have been driving for around 50 years know all about how the motorist has been 'fleeced' over the years. How many times can you burden a motorist with the same charge? The RFL, fuel duty and VAT. It all adds up to £Billions already. The only privately funded Motorway is in the Midlands. With 20+ million cars on the road, an idiotic suggestion like this is sure to get those politicians kicked out of office come the next GE. this is

Your suggestions on increases in the cost of fuel and scrapping the road fund charge is one which makes sense. It is an automatic leveller and doea not penalise OAP's etc. who only use cars locally. However it would mean a complete rationalisation of all the taxes on fuel into onee surcharge which could be controlled as a single element and showed at the pump as a cost on top of fuel company charges. Otherwise we end up paying more tax on the taxes and no one will know exactly what money is going where. The transparency offered would force the Government to be more transparent with its taxes and at least we would be able to vote with our wheels at election time. I don't think it would make any differnce in the end but it would avoid sneaky moves by oil companies and the Government as they could not hde behind a single charge.

Higher fuel tax is best you only pay for what use