If there is one thing that unites people right across the New Labour coalition it is their attachment to the motorcar. And they will break their attachment to politicians who try to force them out of their cars before they will break their attachment to the car itself. So, if cutting carbon emissions from motorcars is vital, the challenge is clear. To stay in power long enough to achieve it, we have to strike a ‘new deal’ with the motoring public.
Motorists understand the need to raise money from fuel duty but they don’t believe the fuel duty escalator and recent changes to road tax are fair. So let’s start the process of striking our deal with the motoring public by scrapping the fuel duty escalator and replacing it with a duty moderator that recognises that when the price of fuel goes up the exchequer’s VAT take increases and the rate of fuel duty can go down.
Second, a ‘green’ tax that you cannot avoid by changing your behaviour is not a ‘green’ tax, it’s just a tax. So, in future, changes to excise duty aimed at encouraging people to drive cleaner cars should never bite on vehicles already on the road but always to new vehicles.
Third, we should announce that over the next five or six years (the time needed for vehicle manufacturers to realign their production) we will introduce a ‘feebate’ system which imposes a significant tax on the purchase of polluting vehicles but uses the money raised for a substantial tax credit to reduce the cost of clean vehicles. The scheme should be revenue neutral so it is clearly a green measure and not a stealth tax.
Fourth, all heavy goods vehicles, including foreign registered ones, should be made to purchase a daily vignette and the money used to reduce excise duties on heavy goods vehicles registered in the UK. Foreign hauliers would be seen to be contributing to the cost of our roads and UK hauliers would become more competitive.
Lastly, a huge and rapid extension of active traffic management and hard shoulder running, paid for by rescheduling the road building programme, will have a major impact on congestion. We’ve already made encouraging noises in this regard but we need to be bolder to deliver short-term benefits.
In the long term, road pricing will have to remain part of our vision for tackling congestion – we are a small island with 34 million vehicles on our roads already – but we need to make it clear it won’t happen without public support. That will mean being absolutely clear that any money raised from road pricing will be used to reduce fuel duty, for investments in popular public transport schemes such as guided bus or light rail or to reduce the cost of public transport. If road pricing is seen to equate to extra revenue for the Treasury, we can forget it.
These suggestions seems eminently sensible and should appeal to the voters who are feeling that, despite their desire to stick with Labour, they are being unfairly treated by the tax element in the cost of fuel and energy. They realise that world prices are out of the control of Government, but the large tax element is not. Once the feeling becomes firmly fixed it will be hard to reverse. I would urge the PM and Chancellor to give serious consideration to Mr ladyman’s words.
I totally agree. We Brits have always had a long standing love affair with our cars. Not only that but it signifies a freedom that I for one am not going to give up. I’ve worked hard to get my car and am getting tired of being pressurised to downscale or use public transport (which incidentally I do when it’s the easier option such as travelling to London) but what about ‘choice’. That was New Labour’s mantra and it needs to be upheld. The road tax on my ‘Mini’ is going to double in 2010!! I will be one of the first to protest – and I think this will equal the poll tax revolt. My sister wants to sell her large people carrier for a smaller version but cannot due to this potential tax hike. I agree that foreign heavy goods vehicles should pay road tax and it is fine to add a cost to new gas guzzlers but surely to tax people indiscriminately is a definite vote loser – along with the tax on petrol of course.
Breath of fresh air!! realistic proposal that would re-connect Labour with the electorate.
Lets hope this becomes reality!
My God, a politician who is actually listening to the public!
Good on you Mr Ladyman for showing some common-sense. If your proposals came into action you would not lose THIS lifelong Labour voter’s support at the next election.
If your ideas are ignored by the government then I’m afraid I will have to vote for someone else – I won’t like to do it but I will feel I have no other option.
Again, well done Mr Ladyman
My main concern for motoring taxation is the cost of my tax disc, which for my 2004 Espace will be increasing to well over £400. It would seem the new road tax rates will represent something truly remarkable for a Labour Government, namely a progressively retrospective tax, given that those who cannot afford to change their cars will not be able to avoid the increasing taxation over time. Soon my car will be worth less than its tax disc. Come on Gordon!
I think road pricing is essential, there are record numbers of cars on the roads each year, and we continue to drive more miles each year. To give but one example. Road pricing would help deter pensioners who can shop at any time driving to the shops in the morning and evening peak commuting/school runs.
The price mechansim could help them act more thoughtfully for both themslves and the whole community. With an aging population this would be one mechanism where we could change people’s behaviour.
The sooner road pricing happens the better.