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New Road Pricing Set to Replace Fuel Duty
11 November 2019
The Transport Committee has announced it will launch an inquiry into new road pricing in 2020. This is in response to the decline of fuel duty, which has fallen by £19 billion since 2000. It is also predicted the annual £40 billion income from fuel duty and Vehicle Excise Duty (VED) is likely to decline sharply in the future. These taxes may cease to exist at all if the government achieves its target to fully decarbonise road transport in the next two decades.
Due to the falling figures, the Institute for Fiscal Studies (IFS) has recently said that the government needs to design new taxes to replace the declining fuel duties and VED. This is where the new road pricing taxes would come into effect. The possible areas that would be considered is the distance driven and where the journey took place.
The RAC found that drivers are open to a new form of motoring taxation but a staggering 75% were worried this may lead to paying more in taxes. Which is why the RAC concluded new road pricing taxes should be in place and not in addition to current fuel duty taxes. This is a point the IFS echoed by saying the taxes would not be about pricing drivers off the road.
At Marshall Leasing we understand that the potential of new road taxes can cause sleepless nights for fleet managers and that is why we are on hand to support you. We go beyond being a leasing business to our customers. This means listening, discussing and advising our customers in areas like formulating an internal and external car policy that best suits your business requirements.
When it comes to considering what the impact of new road taxes could have on your fleet do not hesitate to get in touch. We would be happy to talk through the potential implication they may have on your business and how to best navigate them.
To find out more on how we can help with all of your fleet requirements, please visit our dedicated ‘Products’ section on our website, or call us directly on 01480 414541.
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