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Articles: Issue 243 31 May 2012

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congestion charging, All of UK

'Compelling case for road charging' says IFS

Patrick McDonnell

A “radical overhaul” of road taxes is required, suggests a report by the Institute for Fiscal Studies (IFS). The study, funded by the RAC Foundation, found there is a “compelling” case for road charging in the UK rather than the current system funded by taxes on fuel.

Receipts from fuel duty and vehicle excise duty (VED) are one of the biggest sources of funds for the Treasury, contributing about £38bn a year, or 7% of all the Exchequer’s total income, but...

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