Road Pricing

Lord Carlile of Berriew Excerpts

Monday 29th April 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The Treasury sees that there are many options going forward for the fuel duty and many broader motoring taxes—and indeed for all taxes. As we transition to net zero, the Government will need to ensure that the tax system encourages more EV uptake and that revenue from motoring taxes keeps pace while remaining affordable.

[Lord Carlile of Berriew (CB)]

Does the Minister agree that the introduction of road pricing with modern technology would mean that vehicles could be priced on the basis of their consumption of fuels and that differentiation could be made between goods vehicles and passenger vehicles, so that it would be a much fairer system? Does she also agree that road pricing would enable the police very much more easily to detect vehicle crime, particularly on motorways, which has raised car insurance premiums so much recently?

[Baroness Vere of Norbiton (Con)]

I recognise what the noble Lord says. Many think tanks and other groups have done a lot of work on road pricing. Jurisdictions around the world are looking at it; however, as yet, very few have managed to introduce it successfully. From the Treasury’s perspective, we welcome work from external stakeholders on road pricing and all other taxes.