12:29 pm, November 15, 2022
Online marketplace Carwow has launched a scathing attack on the government amid rumours that the EV exemption from road tax could be removed in Thursday’s Autumn statement.
The firm’s consumer editor, Hugo Griffiths, slammed the idea, which he said ‘wouldn’t cut it’ when it came to raising additional funds.
He also called on the treasury, lead by chancellor Jeremy Hunt, to be ‘bold, brave and honest’ when it came to setting out a plan for the future of road tax.
EVs are currently exempt from paying road tax as part of a government drive to get motorists to switch to EVs ahead of the 2030 ban on new petrol and diesel cars.
The proposal to scrap the initiative could impact sales of EVs, particularly as drivers grapple with the ongoing cost-of-living crisis.
Griffiths said: ‘It seems inevitable that EV drivers will be asked to pay road tax sooner or later. Yet the rumours that Thursday’s statement will include the ending of electric car exemption from road tax, if proved true, will come as a nasty shock nonetheless.
‘Fundamentally, there remains a much more expensive elephant in the room: road tax brings in a mere £7bn to government coffers each year, whereas duty from petrol and diesel raises four times that amount.
‘With just seven years to go until the ban on the sale of new petrol and diesel cars begins, the government must stop burying its head in the sand, treat its citizens like adults and explain precisely how it intends to raise £28bn each year once fuel duty revenue dries up.
‘Tweaks to the current system aren’t going to cut it. Sweeping changes, which EVs require, need years to plan for and require deep collaboration from the outset.
‘The Treasury needs to be bold, brave and honest, and clearly set out an equitable plan for the future of road tax that works for everyone.’
One option that has been mooted as an alternative to the current road tax system has been a a road pricing system based on telematics.
It is a strategy that would appear to have backing from the powerful Transport Select Committee but Carwow has warned that such an approach would bring issues surrounding privacy.
Griffiths added: ‘The Transport Select Committee has previously said that it has not seen a viable alternative to a road pricing system based on telematics.
‘Telematics devices are already commonplace for young drivers with ‘black box’ insurance policies, but for the Government to electronically track motorists’ individual journeys as they go about their daily lives brings with it serious concerns over privacy rights.
‘This is clearly going to be a difficult conversation to have – but it’s not going to get any easier as we near 2030.’
Jeremy Hunt is expected to reveal his autumn budget to the House of Commons on Thursday.
