Pay-Per-Mile To Cut Down Congestion

The idea of pay-per-mile means that instead of a fixed annual charge, motorists will have to pay for every mile they drive on some of UK’s busiest roads. Although the idea of a national road pricing scheme has so far proven unpopular with motorists, it could save money for some. If a switch to a national road pricing scheme replaces the current taxation of fuel duty and vehicle exercise duty, it could produce a more straight-forward approach to motoring taxation.

To pay or not to pay?

The Governments ‘Watchdog’ has broadcast their view that motorists should be forced to pay to drive on the busiest roads to slash greenhouse gas emissions. There has been a dramatic increase in the volume of cars on UK roads over the years with car traffic increasing by up to 87%, resulting in a rise in congestion – the rise in congestion is costly to both the economy and environment.

Some MPs has slammed the Government's handling of road taxes, claiming that bungled increases to Vehicle Excise Duty have ‘tarnished the image of environmental taxes’. Under the controversial scheme, cars will be fitted with electronic tags and tracked either by satellite or a roadside beacon, with charges rising at times of peak congestion to around £1.50 a mile.

The government is throwing its weight behind a revolutionary plan that would force motorists to pay an average of £1.30 a mile to drive on Britain's busiest roads in a bid to prevent 'LA-style gridlock'.

Studies into the new pay-per-mile scheme have revealed that 55% of motorists voted to pay-per-mile road fees, while 45% voted against the idea- which would lead to drivers being charged according to how many miles they drive. While the poll results show a fairly even split of the vote for and against a pay per mile system of taxation, this can undoubtedly be partially explained as the differing opinion of those who have a high annual mileage and those who do not.

Pay- as-you-go:

Eight areas of the UK have already been selected for pay-per-mile trials which will begin in 2010 and are expected to pave the way for tolls on motorways. But the detailed level of planning now underway indicates the issue it set to become a key battleground in the next general election – which is likely to coincide with the trials beginning.

There is a good economic rationale to introduce road pricing and thereby reduce congestion on UK roads. However it has been noted that motorists are already switching to greener and cleaner cars, working more from home and sharing cars. They don't need the threat of being beaten with road pricing to get them to change their habits.

There are many reasons why people are cautious of national road pricing, be it due to invasive technology or a lack of faith that the money raised will be used properly. Yet if the government was to reform taxation completely, road pricing schemes could form a simpler system of taxation.

British motorists already pay some of the highest taxes in the world and with Government finances under severe pressure the pay-as-you-drive scheme could prove a valuable source of extra revenue for the Treasury.

While pay-per-mile may seem like it could be just another expense pushed onto motorists, congestion is already seriously suffocating our economy – do we want this to continue?