Government looks at two-tier road tax system

29 Oct, 2012 12:42pm Chris Ebbs

The Government is considering a two-tier VED, with those driving only on smaller roads paying less

Government officials are considering a new ‘two-tier’ Vehicle Excise Duty (VED) that could see motorists who use major A-roads and motorways paying a higher rate than those who only use smaller roads.

Cameras using number plate recognition technology would then be used to make sure drivers using motorways have paid the higher rate.

The proposal is one of several options currently being considered by ministers as part of a Government review of transport funding, which follows concerns that increased fuel efficiency could lead to a decline in revenue for the treasury.

VED currently brings in around £6billion a year, but this is expected to fall dramatically as motorists switch to more efficient cars which qualify for lower rates.

However, a number of motoring groups, including the AA, have warned that this kind of system could lead to some drivers being priced off major roads, which would cause more congestion and slower journeys.

Other proposals currently being considered include the introduction of road tolls controlled by private companies, as well as replacing the annual tax with a one-off, up-front sales tax on all new cars.

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Great, another stupid idea.The whole point of motorways was to alleviate traffic from smaller roads.

Toll roads are also ill conceived. Just look at the M6 toll as an example. Falling usage year on year - 34,000 a day in 2011 instead of the expected 74,000. Perhaps prices almost trebling in last 8 years to a rip-off level might have something to do with it. Another factor is that it took 23 years from consultation to opening!

Sales tax on cars will stifle growth and negatively affect environment as people will look at 2nd hand cars or keep their not as efficient cars.

If government is concerned about maintaining VED, they should raise tax/duty on fuel to keep levels constant. A slow rising cost of fuel would encourage people to buy more efficient cars. It is far easier for the fuel companies to write a cheque to treasurery at the end of tax year than these other ideas.

Oh my god Big Brother at his best Invasion ov privacy Don't they get enough tax ? What have they been doing with the billions they've been making for years apart from making more camera's to spy on us & pay people to come up with more stupid ideas on how to tax us.

More proof that you don't need to possess any intelligence to work in UK government.

Will the last relentlessly harassed and constantly monitored law-abiding tax-payer switch off the lights as they leave please...

Basically just an excuse to put trackers in our cars to see where we're going.

A poorly thought out idea, it just is too costly to administer (extension to ANPR network, administrators) that it won't be viable, not to mention pushing thousands of cars back onto clogged local roads. We already have a system where the motorist is taxed to the hilt, and rises in line with usage... fuel duty, oh and the VAT on top of that and the ever rising cost of the product itself.

I have just bought a very efficient diesel for the long distance motorway journeys our household undertake, introducing this scheme slaps me in the face for helping reduce my bills (to reinvest in the economy elsewhere) and reduce my effect on the environment.

So the Government introduces VED bands aimed at encouraging motorists to drive more fuel efficient cars. Tick - it worked. Oh dear, now they're not receiving enough revenue! Doh! Apparently the treasury receive around £5bn from motorist already and don't spend half of that on road and infrastructure investment. Go figure...

What about people who have to use Motorways just once or twice a year? Traveling to family only reachable within a sensible length of time by way of motorways, for example. Our family is split between south Norfolk and Cornwall. Would we be taxed for a whole year at 'Motorway' rates just to make an occasional visit?

The answer is much simpler than Britain's stupid Civil servants "Clean sheet of paper approach"

A quick glance across the channel and you can see how to raise money fairly from Road users.

Use Vignettes that can be purchased on a trip basis or for an extended period.

Vignettes should not be required within a short distance of the registered home of the registered driver of a vehicle.

Vignette obligation by country
Czech Republic

No Toll booths with their associated costs and interruption to traffic flows, merely an efficient electronic system that fairly taxes road users directly relative to their road use.

Then the Government should abandon inefficient Vehicle taxes, fuel taxes etc.

Civil service NOT Government

At least one person here has an idea - but I do not agree with it.

Step 1 - Remove VED & all other Vehicle Taxes

Step 2 - Remove Fuel Duties

Step 3 - Create a single Vignette Tax - structured by road useage.

Increased fuel tax is idiotic - it merely makes Britain a less competitive location for investment.

Vehicle Excise Tax is costly to collect and typifies out of date Bureaucracy.

Get rid of Civil servants - Don't create more jobs for them.

Have they ever considered that people will just flood smaller roads because it's cheaper?

It is interesting to see how the media are going on about motorways but the real sting may well be 'trunk roads' that is majhor A roads. Applying charges to these, as proposed, would really rake in the income and tie motorists up in knots.
One guy on the TV said the proposals we fine as he lives in Cornwall and they have no motorways - yes but they do have trunk A roads! So they will be affected and the same applies all over the country.
Enforcement by ANPR means only taxed registered cars will be caught the lawless brigade with false plates will get away with it again. If you don't believe me look at the figures for the London Congestion Zone.
All in all an ill thought out plan which deserves the bin but probably won't get it. They need the money.

No tax change like this should exclude foreign users, in particular trucks. We pay to use overseas motorways they should pay to use ours. Why not a toll road on every port and chunnel exit? This would give a double chance for UKBA to pick off immigrants and collect the money as near to source as possible. Yes British travellers would pay but small in significance to the revenue picked up from Trucks.

right thats it for me then i suppose i will have to spend my whole life in blackpool cause i wont be able to leave the coast as there is only a-roads and motorways for us to travel on if we want to get out of the town no b-road alternatives.

Vignettes in the other European countries (excludes Germany whom require an 8 euro, one off emission sticker) are between £20 to £120 per year for a car. This is less than our band E VED.

Currently, our fuel prices are just above the European average; lower than than what Norway and Italy pay. Even with an 18p petrol and 4p diesel increase we would still keep our price ranking.

What I do think is that diesel should be cheaper than petrol, just like every other European country. Reduces haulage costs as well as stimulates diesel car buying, which are on average more efficient as well as lower CO2 emissions than petrol cars.