Drivers don't trust reasons for road tax
Transport committee report finds drivers do not trust reasons for road tax
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By Adam Leveridge. |  |
Friday, 24, Jul 2009 12:46
Public trust needs to be rebuilt in the wake of a lack of faith in how road tax is spent, according to a transport select committee report out today.
The committee said the government "must improve the way in which it justifies taxes on road users to rebuild public trust".
MPs warned road investment should be justified only on wider transport objectives, need and benefits. In a statement they said they: "Reject the notion of hypothecation for transport taxes, arguing it provides a poor basis for public expenditure decisions and ignores the social costs associated with road use-policing, accidents, pollution and carbon emissions."
They also said there was a "case for earmarking revenue from specific local schemes for spending in a given geographical area when such an approach will earn public acceptability and help ensure fairness".
Committee chairman Louise Ellman MP said: "The government handled a phased set of increases to vehicle excise duty so badly they tarnished the image of environmental taxes.
"We believe taxation based on car usage-through fuel duty-remains fairer than any approach based on car ownership and does more to encourage fuel efficiency or reduce CO2 emissions.
"We recognise that economic factors will limit how much revenue can be raised by this method. We call on the government to develop other measures to address the problem of congestion."
The report highlighted spending on roads had almost doubled in real terms since 1999-2000, with the committee concluding spending would need to increase further as part of the government's efforts to stimulate the economy.
The committee have called 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 the committee concludes that UK freight operators will continue to face unfair competition from foreign-registered vehicles able to take advantage of cheaper diesel.
James Hookham, Freight Transport Association (FTA) director of policy, said: "The transport select committee is absolutely right when it says that the driving public has lost faith in the way they are taxed.
"This is amplified in the logistics sector, where the ability to remain competitive in difficult economic times is compromised by a government that seems to see hauliers as a cash cow. As a sector, we take our environmental commitments very seriously, investing where we can in cleaner, greener vehicles.
"It is time for all political parties to be honest about the taxes they intend to levy and to stop hiding behind greenwash."
MPs also questioned the use of parking charges for wider policy purposes. Where they cover more than the cost of parking and are used to generate revenue for other services MPs argue parking charges must be "proportional, explicit and justified".
In a similar vein, the committee warns ministers penalty charge notices must retain their credibility as an enforcement tool and must no be used as a blatant method for raising extra revenue from motorists.
RAC Foundation professor Stephen Glaister said: "Whilst the solutions might be complex, the problem, as the committee has recognised, is simple.
"Too many vehicles on too little road space and no clear explanation to drivers of exactly what they get in return for the £45 billion or so they contribute to the Exchequer each year."
The Association of British Drivers (ABD) welcomed the report as a "dose of realism", as did the Campaign for Better Transport who said "there should be a clearer link between the Treasury and transport policy to assuage public mistrust in motoring taxes".
Sarah Garrod