‘Strong argument’ for graduated approach to road pricing

There is a strong argument for a graduated approach to the introduction of road pricing, starting with tolls on some major motorways, says FleetCheck.

The rapid growth in electric vehicles (EVs), expected over the next few years, and the subsequent decline in revenue for fuel, road and company car taxation, has made an overhaul of fuel and road taxes inevitable.

The growth in EVs will eventually leave the Treasury with a £30 billion gap in tax revenue, equal to around 2p on the basic rate of income tax, the Social Market Foundation (SMF) has said. 

FleetCheck says that the fleet sector needs to start having a constructive discussion about the likelihood of road charging being introduced in the future and the kind of scheme it would like to see.

Peter Golding, managing director at the fleet software specialist, said: “Boris Johnson mentioned to the Commons Liaison Committee the day before his resignation was the probable inevitability of some kind of road charging scheme.

“The topic is clearly a live one – especially at a time when the public finances are under pressure - and it is probable that different models are under discussion.

“Our view is that it very much makes sense for the fleet sector to begin to give formal thought to the subject. The declining tax take resulting from electrification means that Treasury revenue will be falling every year. It is inevitable that some kind of new scheme fills the gap.”

Golding says that any road pricing scheme must be fair and easy to use – especially when it came to payment processing.

“Our main concern is that the technology adopted proves too complex and, as a result, is difficult both to introduce and to use,” he added.

“There is a strong argument, we believe, for a graduated approach over time with simple systems being introduced in the first instance, such as tolls on some major motorways.

“However, what really needs to happen is for the views of all the fleet industry’s major players to be heard. This is something that is almost certainly coming, and we should be doing everything to ensure that whatever solution is adopted meets our needs, as one of the major interested parties.”

Golding says that there is some “good work” being done in this area already by the Association of Fleet Professional's Future Roads committee – and it would be positive for as many fleets as possible to make their views known.