Road pricing

[kevin bryant]

I've just listened to the Institute of Fiscal Studies critique of the budget.  Well worth a listen if you are after balance and reason but it'll drive you mad if you think rachel from accounts must go or Ms Reeves is doing an excellent job.

Whilst the IFS welcomes the move to recover some of the lost income from EV by the cost / mile charge, they are critical of the failure to address the externalities of road congestion.

The IFS would like to see an electronic road pricing scheme aimed at reducing congestion and raising revenue.  It seems the most highly regarded scheme is Singapore's Electronic Road Pricing (ERP) which works by automatically deducting a fee from a vehicle as it passes through overhead gantries on busy roads during peak hours. This system currently uses RFID technology, but an improved ERP 2.0 scheme will use a Global Navigation Satellite System (GNSS).  The aim is to manage congestion by encouraging drivers to use alternative routes or travel during off-peak times. The rates are adjusted based on real-time traffic conditions to maintain optimal traffic flow. 

I like that idea.

Thoughts?

Kev

[tim hunt]

I saw the Chancellor interviewed by Charlie Stayt on the BBC news this morning. It was clear she had no clue how the EV mileage charge would be policed. She said that the annual MoT check would be an opportunity to record a vehicle's mileage but completely ducked the question as to what would happen for new EVs that are not subject to MoT for the first three years.

Tim

[kevin bryant]

1 minute ago, tim hunt said:

I saw the Chancellor interviewed by Charlie Stayt on the BBC news this morning. It was clear she had no clue how the EV mileage charge would be policed. She said that the annual MoT check would be an opportunity to record a vehicle's mileage but completely ducked the question as to what would happen for new EVs that are not subject to MoT for the first three years.

Tim

The IFS, in the Q&A, said the government are still working through the options on that issue but he didn't elaborate on what they were either. 

[Steve-B]

I feel for Electric-only drivers as if they drive onto the continent the mileage will count to the UK tax they're going to be taxed for. In a crazy way, one could imaging France taking UK.gov to court demanding that revenue!?

[RobH]

Well you pay UK road-tax* and don't get any discount for foreign driving so there is a precedent .   If they settle on a GPS-based measurement there isn't a problem anyway. 

 

(* yes I know it isn't 'road tax' any more....)

Edited November 27 by RobH

[james christie]

I don't think anybody should rely totally on measurements by GPS. It just needs a high placed person to throw a hissy fit and it can be reduced in accuracy or even switched off!!

james

[RobH]

1 hour ago, james christie said:

I don't think anybody should rely totally on measurements by GPS.

They shouldn't but I bet they will as the pragmatic and cheapest solution (since you will probably have to buy the module - not them) .  Yellow-hair man can't turn off Gallileo - he doesn't own that one.  

[Crawfie]

Does a classic car , which is tax exempt , have to pay the 3p a mile if converted to electric ? 

[AndyR100]

11 hours ago, Crawfie said:

Does a classic car , which is tax exempt , have to pay the 3p a mile if converted to electric ? 

I would expect it to be dependent upon the Defined Taxation Class and Fuel Type on the vehicles V5C

[Cew]

On 12/2/2025 at 7:44 AM, Crawfie said:

Does a classic car , which is tax exempt , have to pay the 3p a mile if converted to electric ? 

Doesn't the two thirds ( or whatever it is!) alteration from original apply thus negating the historic ("classic") status of a vehicle?