By Vivienne Russell
24 July 2009
Ministers must try harder to justify taxes on road users, a committee of MPs has said.
The Commons transport select committee called on the government to rebuild public trust after poor handling of changes to vehicle excise duty ‘tarnished the image of environmental taxes’.
The government had to row back from a planned restructuring of vehicle excise duty, announced in the 2008 Budget, after the proposals were criticised for being retrospective and penalising the owners of larger, older cars rather than focusing on car usage.
The committee also highlighted the mixed messages emanating from government over the purpose of road taxes and charges, which are sometimes justified in terms of environmental objectives and at other times in terms of revenue needs.
Committee chair Louise Ellman said: ‘Stronger linkage between Treasury policy and transport ministry policy is essential if government is to send clearer signals to UK motorists about congestion and carbon emissions while encouraging walking, cycling and greater use of public transport.
‘Effective reform will however elude any government until the public is given explicit and comprehensive information detailing how much money is raised through this route and how it is used.’
The committee’s July 24 report warned that road investment should be justified on the basis of wider transport policy objectives, needs and benefits.
It also called for the development of voluntary road-pricing schemes, allowing vehicle excise duty or fuel duty to be traded for per-mile charges.
A government spokeswoman said: ‘Government has always been very clear that transport taxes are primarily revenue-raising - but that they also send strong environmental signals, encouraging greater fuel efficiency and the purchase of lower-emitting cars.’
24 July 2009
Ministers must try harder to justify taxes on road users, a committee of MPs has said.
The Commons transport select committee called on the government to rebuild public trust after poor handling of changes to vehicle excise duty ‘tarnished the image of environmental taxes’.
The government had to row back from a planned restructuring of vehicle excise duty, announced in the 2008 Budget, after the proposals were criticised for being retrospective and penalising the owners of larger, older cars rather than focusing on car usage.
The committee also highlighted the mixed messages emanating from government over the purpose of road taxes and charges, which are sometimes justified in terms of environmental objectives and at other times in terms of revenue needs.
Committee chair Louise Ellman said: ‘Stronger linkage between Treasury policy and transport ministry policy is essential if government is to send clearer signals to UK motorists about congestion and carbon emissions while encouraging walking, cycling and greater use of public transport.
‘Effective reform will however elude any government until the public is given explicit and comprehensive information detailing how much money is raised through this route and how it is used.’
The committee’s July 24 report warned that road investment should be justified on the basis of wider transport policy objectives, needs and benefits.
It also called for the development of voluntary road-pricing schemes, allowing vehicle excise duty or fuel duty to be traded for per-mile charges.
A government spokeswoman said: ‘Government has always been very clear that transport taxes are primarily revenue-raising - but that they also send strong environmental signals, encouraging greater fuel efficiency and the purchase of lower-emitting cars.’
