An exciting new way to pay for roads, that we have already paid for over and over again, via general taxation.
Don't be simple-minded. Roads have to be paid for continuously, even if they don't reach the standard you expect, with potholes etc. It's the same reason rail fares keep going up - users expect fast punctual trains, forgetting that more speed requires better track, which needs regular maintenance because it gets hammered by the speed of the trains. Plus the high cost of safety. Better always costs more.
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Motoring taxes are just a part of general taxation which goes to the Treasury.
They know that as EV replaces ICE, taxes raised from fuel (duty + VAT) will decline. This needs to be replaced. No surprise that toll roads, drive per mile, taxing charging of EVs etc will all be under consideration. Get used to it!
The alternative is to reduce other public spending - but where? Health, education, defence, pensions, social care, etc etc are not likely to be attractive.
We all may have an opinion on waste or foolish vanity projects - eg: HS2. Equally we all may have areas where we regard greater spending as essential. You can vote for whichever government most gives you what you want.
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I would sooner see other services cut drastically and have cheaper motoring. Other developed countries manage!
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I would sooner see other services cut drastically and have cheaper motoring. Other developed countries manage!
Which ones have cut services to enable cheaper motoring?
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We all may have an opinion on waste or foolish vanity projects - eg: HS2. .
And I wonder what the upkeep cost of that will be .... ?
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According to the OECD latest figures (2020) U.K. tax rate versus GDP overall was 23rd out of 38. Number one being the highest taxed.
It doesn’t always feel like it and maybe we spend some of it on the wrong things. If everything is a priority then nothing is.
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Scaremongering article, nothing else.
And this has been mentioned before - all those band A cars paying nothing in VED yet still wearing out the roads.
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According to the OECD latest figures (2020) U.K. tax rate versus GDP overall was 23rd out of 38. Number one being the highest taxed. It doesn’t always feel like it and maybe we spend some of it on the wrong things. If everything is a priority then nothing is.
Wise words, worth remembering. Anyone with a particular gripe wants to be at the top of the list.
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To be credible:
- if arguing for less tax (motoring, NIC, PAYE, stamp duty etc) be very clear which bits of public spending should be cut to make it affordable, or which other taxes should be increased to compensate
- if arguing for more public expenditure (fix potholes, build more roads etc) be explicit about how it can be afforded - increased taxes or cuts elsewhere
- HS2 cancellation (I agree) can only be cancelled once, not several times over to support multiple tax cuts
Country economies are fundamentally no different to personal finances, albeit with a few zeros added. Consistently spending more than income, financed through credit cards, bank loans, mortgage drawdowns, pension fund lump sums etc only works for a while.
Eventually the car is repossessed, credit cards cancelled, eviction looms. Likewise a country can become so poor a credit risk that banks won't lend more money, currency becomes worthless, imports dry up - a failed state.
It is easy (and enjoyable sometimes) to bluster and be glib - but it becomes an inconsequential unsupportable rant, rather than a reasoned argument.
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- HS2 cancellation (I agree) can only be cancelled once, not several times over to support multiple tax cuts.
I also agree with HS2 cancellation, but I suspect the consequences in lost jobs and compensation payments must be a big deterrent. That vanity project should never have had the go-ahead, as everyone with any intelligence would realise it would go miles over the announced cost. Such things always do - if genuine cost was projected it would never be considered.
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I could declare what I think should be cut, but I think it would derail the thread away from motoring and for some people on here it is quite a touchy subject.
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An exciting new way to pay for roads, that we have already paid for over and over again, via general taxation.
Don't be simple-minded. Roads have to be paid for continuously, even if they don't reach the standard you expect, with potholes etc. It's the same reason rail fares keep going up - users expect fast punctual trains, forgetting that more speed requires better track, which needs regular maintenance because it gets hammered by the speed of the trains. Plus the high cost of safety. Better always costs more.
There is some merit to their argument. Whilst I agree that ongoing maintenance is obviously needed and has to be paid for, the amount actually brought in far outweighs what is paid out for such repairs, safety enhancements, etc. Even if all the potholes that need repair were, I'd still suspect there'd be money left over from all the taxes raised by motoring.
As someone who worked (for 2 years - that was more than enough) on the Underground in London, the amount of wastage in refurb / maintenance work - not just for the exhorbitant salaries of certain staff, but the huge inefficiencies in the way the projects are run, mean that huge sums are wasted each year.
I worked on several projects that should've cost less than half what they eventually cost, but could do nothing because of the bureacratic management (it wasn't due to safety issues) and politics (including not having proper all-day shutdowns for work to get more done).
I believe the same is true on the rest of the rail network.
With the roads, my county council just wasted several £000ks on resurfacing a 500m section of (wide) main road and at my local station's traffic lights when all they needed to do was resurface the are at the lights plus a patch at the other end of the road, plus fixing the root cause of the problem at the lights (flooding caused by blocked/too small drains).
Unfortunately they dug a lot of the road up at the lights several weeks after to replace the lights, the did so again a few weeks later to do the drainage work - despite many people over the years (myself included) reporting flooding and it doing damage (when cold/icy) as a result.
My guess is that they spent arounf £400k - £500k more than needed. Ironically they carried out the work when the roads got busy again after the re-opening rather than undertake it during lockdown periods when the (normally busy) road was practically unused.
In my view, toll roads only work when they are significantly better (free flowing) alternative than other (free) roads but not exhorbitantly priced. It would be worthwhile seeing how that toll motorway here in the UK up North has faired and compare it to more widespread systems in say France.
Someone at the bottom always loses out - the poorer (or many not that well of middle class) living in more remote or rural areas who have to drive reasonable distances to work and will never have a viable alternative to driving to work.
Even with tracking systems (which have their own [well-founded] 'big brother' concerns), the same group as previously mentioned will still lose out because they do high annual mileages.
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<< Whilst I agree that ongoing maintenance is obviously needed and has to be paid for, the amount actually brought in far outweighs what is paid out for such repairs, safety enhancements, etc >>
As has been said above, this money is not ring-fenced, which usually seems to be an assumption by those who complain about how 'Road Tax' is used. What about tax on beer and fags - I'm not sure where that should be spent, so it must be intended to dissuade those who enjoy it from over-indulging. Maybe the same could be said for Road Tax ?
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<< Whilst I agree that ongoing maintenance is obviously needed and has to be paid for, the amount actually brought in far outweighs what is paid out for such repairs, safety enhancements, etc >>
As has been said above, this money is not ring-fenced, which usually seems to be an assumption by those who complain about how 'Road Tax' is used. What about tax on beer and fags - I'm not sure where that should be spent, so it must be intended to dissuade those who enjoy it from over-indulging. Maybe the same could be said for Road Tax ?
That's true, but your argument was that there wasn't enough money raised via motoring taxes to cover the amount spent on the roads.
Perhaps taxes should be simpler and more open, so we can more directly see how (well or otherwise) they are spent? It's a shame that politicians aren't more honest about why they use each tax / levy / duty and the extent to why each are raised.
I suspect they don't because if most people looked into it, they'd find they aren't there to change behaviour for the better but essentially to just be cash cows rather like income tax, but by stealth. I suspect many get lots of encouragement from their Mandarins who want to empire build.
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"It would be worthwhile seeing how that toll motorway here in the UK up North has faired and compare it to more widespread systems in say France."
Comparing a UK toll motorway to the French autoroutes is difficult.
>There was a rule that french autoroutes had to have an existing alternative roughly parallel route, IE not forcing drivers to use the autoroute.
>The French state owns them, but they are run and maintained by semi-private companies.
>There is no annual road tax or road toll for ordinary roads in France for private cars but fuel is taxed at about the same rate as in UK.
>Example Calais to Nice 1228 km ( 760 miles) would cost €114 toll and €185 diesel. (from a toll estimator website)
So - providing you keep off the autoroutes you can drive for free in France - apart from the fuel cost.
(A big shout here for Brittany where i live - we have lots of super dual carriageway roads but no road tolls for cars - the result of a historical agreement apparently)
The question is will the UK will be prepared to cancel annual road tax and replace it totally with road charging?
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An exciting new way to pay for roads, that we have already paid for over and over again, via general taxation. It's complicated will cost Billions and Billions to administer, employing thousands of expensive civil servants . It will have dire consequences for pollution as if takes people off M ways onto local untaxed routes. What's not to love eh? Look how easily HMG has delivered HS2 and Crossrail. This will prove to be ever bit as successful as those. Whilst discussing money HMG and roads...potholes?
To avoid employing thousands of civil servants costing billions, the obvious way to introduce road pricing, road tolls or whatever it could be called is to use satellite technology.
Singapore is about to introduce such a system, having previously used RFID and smart cards - car drives past gantry - gantry transmits to card - card responds with car details - gantry charges car account or deducts money from card etc etc.
That would involve lots of gantries, cabling, digging up roads, power supplies etc
The new system will just use GPS technology.
www.zdnet.com/article/singapore-readies-satellite-.../
Almost certainly this will cue massive demonstrations from the civil liberties brigade,
But will the technically illiterate UK government chose the right system that works properly? They don't have a great record on this subject.
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Simple Answer:
£30B bill
20M cars
£1,500 pa RFL
Job done.
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My guess is that EVs will cost as much to run as ICE cars do now when the road pricing and other ingenious schemes are brought in by HMG.
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I agree that long term EV will not be a cheap option.
But generally legislation is not made retrospective - certainly changes to car tax rates typically affected only new registrations.
So would it be a good idea to buy an EV now in the hope that the government will not require retrospective fitting of tracking kit, and is it likely that the current car tax would continue to apply to already registered vehicles.
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I agree that long term EV will not be a cheap option.
But generally legislation is not made retrospective - certainly changes to car tax rates typically affected only new registrations.
So would it be a good idea to buy an EV now in the hope that the government will not require retrospective fitting of tracking kit, and is it likely that the current car tax would continue to apply to already registered vehicles.
Some 'taxes' (well, charges) are retrospective, e.g. the London congestion charge, where only full EVs are exempt - it used to be that hybrids were, now they (all of them, not just new ones from the date of change) aren't.
If tracking is to be the preferred method of charging for road usage, then I'd wager that it would have to be retrospectively added to all vehicles.
Note that if not, the vast majority of those then avoiding said charges would be from more well-off groups and thus deemed not fair to those on lower incomes who couldn't afford to buy earlier and had to wait until second hand prices were low enough.
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<< ... the vast majority of those then avoiding said charges would be from more well-off groups and thus deemed not fair to those on lower incomes who couldn't afford to buy earlier and had to wait until second hand prices were low enough. >>
Whatever change happens, there will be at least one subset explaining how unfair it is (to them, usually, not from a disinterested body). It's part of the now ubiquitous blame culture I suppose.
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<< ... the vast majority of those then avoiding said charges would be from more well-off groups and thus deemed not fair to those on lower incomes who couldn't afford to buy earlier and had to wait until second hand prices were low enough. >>
Whatever change happens, there will be at least one subset explaining how unfair it is (to them, usually, not from a disinterested body). It's part of the now ubiquitous blame culture I suppose.
True, but as with many things these days, those often most adversely affected (especially financially) are the least able to change behaviour. It's not as though rural areas have great bus services, which themselves aren't conducive to travelling for work.
Similarly in the bigger cities, shift workers have to drive because public transport is often non-existent and/or dangerous (crime) when they need it.
Plus using public transport is not good for lugging heavy/large amounts of stuff around, including grocery shopping.
Many people don't have a choice, and an EV (too expensive, nowhere to charge [flats, terraced house, crime-ridden area], etc, etc) and/or with swinging per mile rates for people not near their workplace (but who cannot afford to live closer) will mean many have no viable alternative.
The well off don't care becaue they can easily afford it, and yet they always benefit from government subsidies on green tech and can get around ULEZ and congestion charges because they can afford EVs anyway.
The problem is that governments / politicians have (of all hues) for way too long milked taxpyers via stealthy taxes, levies and duties to pay for (increasing) amounts of spending which are in no way related to the products / services taxed.
They are just revenue raisers, thus why EVs will likely be milked just as much as ICE vehicles, which means the 'green incientives' were always bunk. All they care about is raising £X tax to cover their spending and keeping/gaining more power, and the more stealthy/complicated, the better (they think).
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<< ,,, as with many things these days, those often most adversely affected (especially financially) are the least able to change behaviour. >>
Surely that has always been true. What may have changed is [a] when life was simpler, poorer people were often able to fix some of their problems, [b] the differential between rich and poor was probably less back then, and [c] the cost of fixing things was less, not least because the cost of labour has been forced up to silly levels (no comment, but it's the main reason why we depend so much on imports from the Far East).
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the cost of labour has been forced up to silly levels (no comment, but it's the main reason why we depend so much on imports from the Far East).
The cost of labour paid by you and me at the main dealer is much, much higher than the wages paid to the mechanics. The imports from the Far East are cheaper than they used to be because container transport costs make shipping much cheaper than it used to be and also because governments have signed free trade agreements which allow goods in without the high tarifs they used to have.
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<< The cost of labour paid by you and me at the main dealer is much, much higher than the wages paid to the mechanics. >>
I meant the cost of 'labour' - i.e.general wage levels, not the cost labelled Labour on a garage bill, which we all know includes overheads, which must be pretty high at most franchised dealerships.
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The cost of labour paid by you and me at the main dealer is much, much higher than the wages paid to the mechanics. The imports from the Far East are cheaper than they used to be because container transport costs make shipping much cheaper than it used to be and also because governments have signed free trade agreements which allow goods in without the high tarifs they used to have.
Overheads are a thing for most professions that charge by the hour. A colleague 20+ years ago was contemplating joining a solicitor's firm to do some sort of casework. He would have needed billed hours equivalent to at least 3* hi salary for it to work out.
AIUI most cars from Korea etc come on massive ro-ro vessels rather than in containers. Container rates plummeted in the pandemic but have now gone through the roof.
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the cost of labour has been forced up to silly levels (no comment, but it's the main reason why we depend so much on imports from the Far East).
The cost of labour paid by you and me at the main dealer is much, much higher than the wages paid to the mechanics.
Of course it is - the 'labour' charge is where the profit is made...and pays for all the overheads...not just the wages. Wish people would realise this more.
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My guess is that EVs will cost as much to run as ICE cars do now when the road pricing and other ingenious schemes are brought in by HMG.
Australia is ahead of you in EV road pricing. NSW, Victoria, South Australia and Western Australia have all now brought in 2.5cents a kilometre tax for EVs and 2cents a km for PHEVs. In most states it is to take effect in 2027 but in Victoria it is right away. Kilometrage is to be calculated from a digital photo of the odometer sent in with the registration documentation. I expect many people to be "correcting" their odometers.
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I suspect many new cars sold already have some form of GPS tacking installed, probably often associated with built in sat-nav or other systems.
It is entirely plausible this will be used to generate charging data. It may even give a real time read-out of costs accumulated and allow selection of a route based on lowest charge for the time of travel - just as one can currently set fastest, shortest, most economical routing.
Those mainly older vehicles not fitted with such devices - a "black box" may become mandatory and/or the existing road tax regime may continue possibly with punitive rates.
You may not like it, but it is entirely feasible. Govt may also see it as a tool to reduce congestion by flexing charges based on time and location. Rural workers commuting 20 miles to work may pay little, SUV on school run in built up area may be hammered.
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