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Thinktank calls for road usage tax to cover lost fuel revenue

Increasing use of electric vehicles will cause fuel duty tax revenue to drop £28bn, warns IFS

Mark Moran
05 October 2019
The average social costs of motoring (IFS)
The average social costs of motoring (IFS)


A system of road pricing should be introduced to combat traffic congestion and compensate for the £28bn loss of revenue from fuel duty as the country makes the transition to electric vehicles, the Institute for Fiscal Studies (IFS) has said.

The IFS, which specialises in UK taxation and public policy, said the government’s pledge that the UK would reach zero net emissions by 2050 meant the tax take from petrol and diesel would shrink to nothing over the coming decades and a new way...

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