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Embrace road pricing, IFS tells Osborne

ROAD PRICING

19 February 2016
 

The Institute for Fiscal Studies is urging the Government to introduce a system of nationwide road pricing as a partial or full replacement for existing fuel duty and vehicle excise duty.

Fuel duty is currently 57.95p a litre and generates £27.2bn of revenues a year for the Chancellor. VAT is applied to the duty-inclusive price of fuel.

The IFS says road pricing would incentivise motorists to drive at less congested times of day. With a nationwide system in place, it says fuel duty and...

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