Skip to main content

UK considers road user charging

Expansion of EVs expected to create £40bn gap in fuel duty revenue which needs plugging
By Mike Woof November 17, 2020 Read time: 2 mins
The rise of EVs means UK government is considering charging motorists for road use (© ITS International)

Road user charging is being considered for the UK as a future means for raising revenue. 

The Times newspaper reports that UK chancellor Rishi Sunak has been given a paper on national road pricing by Treasury officials.

The plans are being revealed now as a way of generating revenue as the switchover from electric and diesel-fuelled vehicles to electric vehicles (EVs) continues. 

Petrol and diesel are heavily taxed in the UK, providing significant revenue for the British government. 

But as EV use grows, there is a need deliver another source of funding to replace the estimated £40 billion generated by duty on fuel.

The concept of road user charging is by no means new, having been mooted several times in the past.

But with far more EVs now on the roads, the concept has once again been suggested. 

Technology has advanced considerably in recent years and with most modern vehicles now featuring GPS systems, determining location would not be as difficult as previously. 

There are numerous different models being considered, though the most logical would be to set rates based on factors including distance travelled, whether journeys are made at peak times and if trips are made in congested urban areas. 

Drivers travelling at night along quiet country roads for example would be required to pay considerably less than those using busy urban routes during the peak rush hour times.
 

Related Content

  • Adaptive traffic control drives financial benefits
    July 24, 2012
    Prof. Klaus Banse, President of ITS Colombia and Ing. Robert Miranda, Head of the Traffic Management and Control System of Cartagena de Indias, Columbia, outline early cost benefits of an adaptive traffic control system. At the beginning of this year, Cartagena de Indias, located on the north coast of Colombia in the Caribbean, implemented a new adaptive traffic control system on 52 intersections with an investment of US$4.5 million.
  • HDR predicts an adaptable and flexible future for roadways
    December 19, 2016
    HDR consultants, Brian Swindell and Bernie Arseanea, consider managed lanes’ untapped potential. It is no surprise that corridor planning continues to challenge agencies and owners as demand continues to surpass roadway capacity.
  • Cost benefit: Wichita eases workzone congestion
    July 8, 2019
    Achieving higher diversion rates has helped one Kansas city to make traffic flow more efficient around workzones. David Crawford examines what’s behind a 10:1 benefit-to-cost ratio in Wichita Around 10% of highway congestion in the US results from delays in workzones, leading to an estimated annual loss of $700 million in fuel costs alone. The lack of accessible real-time traffic information to help motorists minimise their inconvenience – particularly at peak times - is a major contributor. One solut
  • Growth of smart parking initiatives
    April 25, 2013
    New initiatives in smart parking have been announced in the US and Europe in recent months. Is the age of smarter parking finally with us? Jon Masters investigates. Smart parking comes to Manchester, reads the headline to a story posted on the UK city’s website towards the end of March this year. Sensors will be fixed to parking spaces to give drivers and authorities information on parking availability via mobile phone apps and other software, the story goes on to explain. Lower down the page, Manchester Ci