Road pricing could offset loss of fuel duty from electric cars | The Guardian
Rishi Sunak looking at how to recoup lost revenues after ban on new petrol and diesel cars potentially from 2030
Richard Partington Tue 17 Nov 2020
The government is exploring options for dealing with a £40bn black hole in the public finances, which would result from a proposed ban on the sale of new petrol and diesel cars within a decade.
Boris Johnson is expected to announce this week the cut-off date for the ban will be brought forward by five years to 2030, in a step designed to underscore the government’s commitment to a green economic recovery from the coronavirus pandemic.
However, the Treasury is understood to be concerned that a faster transition to net zero will require fundamental changes to the tax system to ensure it keeps pace with the economy of the future.
Taxes on motoring raise about £40bn a year for the exchequer from people buying cars and paying fuel duties, accounting for about 5% of total government revenue, according to the Institute for Fiscal Studies.