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
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.