The Government must improve the way in which it justifies taxes on road users to rebuild public trust, according to the Transport Select Committee in its latest report Taxes and Charges on Road Users.

It also concludes that expenditure on transport will need to rise further as part of the Government's efforts to stimulate the economy.

MPs also warn that road investment should be justified only on the basis of wider transport policy objectives, need and benefits.

And, in the absence of any plans to introduce road pricing for cars, the committee is calling on the Government to resurrect proposals for a low-cost pay-per-mile lorry charge for UK and foreign-registered vehicles.

Without some form of toll or vignette system it concludes that UK freight operators will continue to face unfair competition from foreign-registered vehicles able to take advantage of cheaper diesel.

With regards to investment made available under the Transport Innovation Fund, the committee argues that access to this funding should no longer be tied to implementation of road pricing projects, since such schemes have proved unacceptable to many local electorates unwilling to vote for additional charges.

Instead, it recommends the Government develop voluntary road pricing schemes, where VED or fuel duty may be traded for per-mile charges. This, say MPs, could facilitate complementary systems, such as pay-as-you-drive insurance, and would help build a new consensus for how to curb congestion.

For the full report click here.