Sunday, June 22, 2014
More validation of FairFuelUK's campaigning this month from The Institute for Public Policy Research. In their new report, The Long Road to Ruin, the IPPR say that 'the current system of UK motor taxation is unfair and fiscally unsustainable.' The think tank also makes the seminal point that we've been hammering home for the last three years that the current road taxation system - VED and fuel duty - is regressive and hits the poorest hardest. They advise that any future rises in motoring taxes would be 'both politically difficult and manifestly unfair'. 

More importantly (and this is something we've made very clear to The Treasury), the IPPR agree with us that the current system is broken and can't be fixed without significant tax rises. As the uptake of fuel-efficient cars and EVs grows, receipts from motoring taxation will fall from lower fuel consumption and reduced VED rates for cleaner cars. The Chancellor's favourite fiscal advisory body, The Office for Budget Responsibility, forecasts a decline in fuel duty of nearly 50% and a fall in VED income by 75% by 2030. We think that decline will happen much quicker as manufacturers roll out more and more frugal cars and 70 mpg becomes the norm rather than the exception. 

All of which means that we can't carry on relying on fuel duty to supply nearly 2% of annual UK GDP in tax recepits and that serious reform is needed. I've always maintained that we need a fairer Pay As You Go taxation system which will have to include some form of road charging where the poorest aren't disadvantaged, business aren't financially compromised and part of the revenue raised goes towards better roads and more reliable journeys. Europe has made their road system of tolls work remarkably well and we could too. But that's going to take real political strength. The report concludes that any sea change to the current road taxation status quo 'will require a great deal of political courage', but those who oppose any reform 'can validly be accused of wilful fiscal irresponsibility'. 

The Big Change will happen, the only question is how soon? FairFuelUK is emboldened by the growing view of policymakers that we've been right all along. There will be no more fuel duty rises, only cuts. And we're here to make sure that reduction in duty is more than just a few piffling pence.

Quentin Willson         
 




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[ posted by Paul Biggs, 15.10.14 07:52 ]

Anyone claiming to support drivers wouldn't touch anything that the IPPR has to say with a barge pole - they are a left-wing think tank set up by Labour - we know what the left (including Lib Dems) think of cars and drivers - they hate them. Those of us who genuinely support drivers have fought long and hard against expensive and intrusive 'road pricing.' Fuel tax is easy and cheap to collect - it requires no expensive infrastructure or tracking of journeys - it's the fairest 'pay as you drive system' - the more journeys you make, the less economical your car, the more miles you drive - the more you pay - simple. It is 'sustainable' as long as cars use some sort of fuel - be petrol, diesel or hydrogen. If cars use no fuel as such - then VED could be levied on such vehicles at an appropriate rate. The problem with current fuel duty is that it is too high, and VED has some very unfair, unjustified high rates. This is what needs to be addressed, so forget road pricing! Thanks to the likes of me, road pricing plans were shelved 7years ago, and I was even interviewed by two New York newspapers during the successful campaign against 'congestion pricing' in New York!

Regards,

Paul Biggs, (Jaguar Drivers Club, XJS Club, Alliance of British Drivers, Drivers Union).

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