Simplified two-tier road tax system mooted

Date: 30/10/2012

A simplified road-pricing system is being considered by the government, which would see motorists fitting into a two-tier road tax regime.

It would allow some drivers to pay a lower rate of (VED) Vehicle Excise Duty for not driving on the motorway system.

The proposals are part of a joint feasibility study between the (DfT) Department for Transport and the Treasury, which is looking at new financing models and ownership of the road network.

If it were to go ahead then number plate recognition cameras would be used to ensure only those that had paid the higher rate were driving on motorways.

The system is being considered along with a number of others, but would have benefits in terms of cutting down on congestion and reducing carbon emissions.

Further to this it would improve revenue from VED, which has fallen as more drivers have switched to cleaner cars and therefore reduced the amount of road tax they pay.

A spokesman for the DfT said: "The DfT and Treasury are currently carrying out a feasibility study to review new ownership and financing models for the strategic road network.

"This is looking at how best we can secure investment in the network to increase capacity and boost economic growth."

Ideas that have already been ruled out by the government include charging tolls on road capacity and pay-as-you-go road charging instead of a road tax system.

Some motoring groups have voiced opposition to the mooted ideas, but green transport groups believe that it could be better for the environment if a two-tier tax system was introduced.

Paul Watters of the AA said: "We don't want a first and second class system on the roads. There would certainly be more traffic. It will lead to slower journeys and more congestion."

At present VED raises nearly £6 billion a year for the Treasury, making it an important income source, so any new system must be as effective.

Posted by Mary Treen

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