Costs warning over road tax plans

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The foundation is urging the Treasury to carry out a root-and-branch review of motoring taxation, taking account of the impact of sustained high oil prices on family spending, and the impact of reduced mobility on the UK economy as a whole.

The tax changes announced in the last Budget show that the Government is looking to motorists to fund far more than their fair share of general Government spending, the foundation said.

It added that in 2009, more than 60% of Budget 2008 additional revenues will come from motoring taxes, while in 2010, more than 90% of Budget 2008 additional revenues will come from motoring taxes.

These changes are described in the Budget as measures "protecting the environment".

However, the RAC Foundation said there was no environmental case for raising motoring taxes and that road users were the only energy users covering their carbon costs.

It added that £1.2 billion of the increase comes from planned changes to vehicle excise duty (VED). The foundation has criticised the retrospective nature of the changes and the fact that they are not revenue-neutral.

The foundation said it believed urgent action to rethink motoring taxation was needed, as the road user was "paying more and more for an ever-poorer level of service".

It added that the difference between taxes taken from the motorist and investment returned to the road network had soared more than 400% since the mid 1970s.

In 1975 income from motorists (£11.6 billion in 2006 prices) was broadly equal to spending on the road network (£11.1 billion). The foundation said the Government now took four times as much from the motorist (£31.2 billion) as it spends on the roads (£8.2 billion).