The future of driving

Think tank: Centre for Policy Studies

Author(s): Dillon Smith

May 24, 2023

This report from UK think tank the Centre for Policy Studies looks at fuel duty and vehicle excise duty in relations to Zero Emission Vehicles.

In 2021/22, drivers paid £33bn in fuel duty and vehicle excise duty. But the Government spent only £5.4bn on national roads and £6.4bn on local roads in the same period. This system is not fair for drivers or the general public, who suffer the consequences of polluting vehicles through negative health outcomes. ‘The Future of Driving’, co-authored by CPS Energy and Environment Researcher Dillon Smith and CPS Research Director Tom Clougherty, makes a series of vital recommendations to redress the balance. The report suggests introducing a ‘pay as you drive’ scheme for Zero Emission Vehicles (ZEVs), becoming the only form of motoring taxation for those vehicles. ZEVs would be charged a flat rate for every mile they drive – but still pay significantly less than their petrol and diesel counterparts. While everyone would receive a set allocation of tax-free miles every year, the allocation would be higher for those living in remote areas with fewer transport alternatives.