Company Car Today

A new call for evidence into the adoption of electric vehicles and how to implement road user charging as a result of the loss in fuel revenues has been launched by the Transport Committee.

The committee is responding to the Government’s plans to ban the sale of petrol and diesel vehicles from 2030, and plug-in hybrid and hybrid cars and vans from 2035, and is looking at the twin issues of electric vehicle implementation and the impact on the tax take as fuel duty diminishes.

“The Government has said that the tax system will need to encourage the uptake of electric vehicles and that revenue from motoring taxes must keep pace with this change,” said the call for evidence’s documentation. “One consequence is that the £40 billion annual income from Fuel Duty and Vehicle Excise Duty is likely to decline sharply in future. A new system of road pricing – which can come in different forms – has been proposed as a potential solution, although in the past such schemes have been perceived to lack strong public support.”

The areas of road pricing the Transport Committee is seeking responses to include the economic, social and fiscal impact of introducing road pricing, which method of road pricing or pay-as-you-drive would be most appropriate, and the levels of public support for such schemes.

Regarding electric vehicles, responses are sought on the issues of action required by Government and private operators to encourage greater uptake of electric vehicles and the infrastructure to support them, and the feasibility, opportunities and challenges around accelerating the ban on petrol and diesel vehicles, which has been brought forward from the previous date of 2035.

Written submissions can be made until 17 February 2021, with more detail available via the Transport Committee website.

The Transport Committee is an all-party group of 11 MPs charged with scrutiny of the Department for Transport, and it is expected to report back on its EV and road charging findings later this year.

AFP calls for tax tables to 2030

2030 petrol and diesel ban: The fleet industry reacts