Future of Electric Car Britain
【Summary】Consultancy firm Arup is advising the UK government to implement toll roads and increase income tax to compensate for the estimated £35 billion loss in fuel duty revenue caused by the rise of electric cars. The proposal comes as London's Mayor, Sadiq Khan, expands the ultra-low-emission zone across all 32 boroughs. Arup has suggested toll roads for electric vehicles, GPS trackers in cars, and higher taxes to fund the ban on new petrol and diesel vehicles from 2030.
A consultancy advising the Government has recommended the implementation of more toll roads to address the potential loss of revenue from electric cars. With electric vehicles expected to dominate the roads in the coming decades, there is an estimated £35 billion loss in fuel duty revenue. To counter this, ministers and influential think tanks are urging the Government to make significant changes to driver taxation.
London's Mayor, Sadiq Khan, has recently expanded the controversial ultra-low-emission zone (Ulez) to cover all 32 boroughs of the city. In light of this, senior consultants at Arup, a global infrastructure consultancy based in London, have proposed income tax hikes and road taxes as potential solutions to compensate for the lost fuel duty revenue.
In May, the Department for Transport enlisted Arup's expertise to address the issue of harmful emissions from electric car brakes and tires, which experts claim are more detrimental than diesel fumes. Although the government downplayed Arup's role in infrastructure decision-making, the consultancy has significant experience advising on toll road and congestion charging projects worldwide, including notable projects like the Humber Bridge and the M6 toll road.
Arup, along with ministers and think tanks, has put forward radical proposals for Britain's roads, including the introduction of new toll roads for electric vehicles, the implementation of GPS trackers in every car, and higher taxes to support a ban on new petrol and diesel vehicles from 2030.
Despite these suggestions, both the Government and Labour have been hesitant to announce tax increases or road pricing to offset the potential loss of billions in fuel duty revenue. This reluctance could be attributed to the public backlash against the Ulez and the increasing costs associated with achieving net zero emissions.
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