Rachel Reeves faces a daunting £40 billion funding gap, while an annual £25 billion from fuel duty is threatened by the rise of electric cars, prompting calls for road pricing reform.
The Treasury’s funding concerns are exacerbated by the increase in electric vehicles that contribute nothing to fuel duty, which currently finances Britain’s road and rail infrastructure.
With electric cars accounting for nearly 20% of new registrations, the need for a new tax model on motoring, like road pricing, is becoming increasingly urgent.
The National Infrastructure Commission and other groups argue for road pricing to prevent congestion and generate revenue, suggesting a shift away from the fuel duty system.
Collection
[
|
...
]