Electric cars will leave hole in tax revenues, says Treasury

Posted: December 18, 2020 by oldbrew in alarmism, Emissions, government, Subsidies, Taxpayer, Travel

They’re just stating the obvious, but now a few people have made the switch away from fuel-burning cars their warnings will no doubt become louder. Non-car owners can’t be penalised with an electricity surcharge, and EV subsidies can’t be handed out to everyone forever. They add a free dollop of climate alarm miserablism to their mutterings.
– – –
Taxes must increase or services be cut to compensate for the loss of fuel tax income thanks to the advent of electric cars, the Treasury has admitted.

Officials have been long concerned about the future loss of more than £30bn in revenue from drivers, says BBC News.

In a new review the Treasury has acknowledged the problem in a way that will spark a debate about how driving should be taxed in the future.

One idea would be to charge motorists for every mile they drive.

But the AA says such road pricing will be tough to sell politically.

Instead, the motoring organisation is proposing a system of “Road Miles” in which motorists are allowed to drive free of charge for 3,000 miles (4,000 in rural areas) before they start paying.

The Treasury review offers another striking conclusion from a government department traditionally worried about harm to the economy from cleaning up the UK’s emissions.

The latest message is the opposite – that tackling climate change might even benefit the economy by giving the UK a lead in clean technologies.

It says: “Overall, in the context of the rest of the world decarbonising, the net impact of the transition on growth to 2050 is likely to be small compared to total growth over that period.

“It could be slightly positive or slightly negative.”

The document continues: “Climate change is an existential threat to humanity. Without global action to limit greenhouse gas emissions, the climate will change catastrophically with almost unimaginable consequences for societies across the world.”

Full report here.

  1. saighdear says:

    Just been waiting for nonsense like this to re-appear. Of course this will be the case: anyroad, I know of ONE trunkroad service point’s charging station hasn’t been used since October. Why not ? and at another little used Tariff charge: £1.50 minimum fee and £0.35 per kW with a connection fee of £0.38. An overstay fee of £5.00 is applied after 7 hours etc. I’m seeing the lie of the land. Greenies are for Freebies. Is that how a democratic and social society works? All for ONE and one for ALL. – NONE for work then?

  2. oldbrew says:

    The document continues: “Climate change is an existential threat to humanity.”

    No, but judging by some of the policies being proposed or applied now, belief in human caused climate change is the real threat.

  3. a says:

    We have all known this for years.
    Why has it taken this long for them to fall in?

  4. ivan says:

    Simple answer, just add the tax to the cost of the electricity used in charging the EV batteries at the point of charging (you charge the EV, you pay the tax).

  5. oldbrew says:

    ivan – to identify EV charging versus other home electrics would require a separate meter?

  6. cognog2 says:

    The motorist is a sitting duck.
    If you think that the EV route will reduce your costs; think again. Big Brother will see to that; albeit that currently there is a perceived temporary advantage to be had.

    It all depends on who you vote for.

  7. Gamecock says:

    ‘Without global action to limit greenhouse gas emissions’

    How’s your work on ‘global action’ going? Britain is NOT leading the world; the rest of the world looks at you and wonders, “What the hell are those people doing to themselves?”

    Clue: banning petrol cars does NOT make you look smart. You lead no one. Your declaring yourselves leaders doesn’t make you leaders.

    ‘the climate will change catastrophically with almost unimaginable consequences for societies across the world.’

    Yep, I can’t imagine any consequences, either.

  8. oldbrew says:

    Motorists face £700 billion bill for going electric
    Date: 27/11/20 The Global Warming Policy Forum

    A new estimate of the cost of decarbonising private transport suggests that motorists might have to foot a bill for £700 billion if they want to stay on the roads. Ongoing motoring costs could double.

    – – –
    And the effect on the weather will be zero. Any government that tries to kill off non-electric cars, even old ones, will be destroyed at the polls. People expect to have affordable mobility these days, for work and everything else.

  9. ivan says:

    oldbrew, the answer to your question to identify EV charging versus other home electrics would require a separate meter? is yes because charging an EV requires more electricity than most, if not all, domestic supplies can supply so it should be simple to add a payment meter to the EV charging point (slot in the credit card to start charging, removing card stops charging – it works in conjunction with the required smart meters which prevent bypassing the EV charge unit).

    Yes, I know the greens will squeal about having to pay the tax for using their electric cars, maybe, if they are loud enough, some of the green stupidity could be rolled back.

  10. oldbrew says:

    Toyota’s Chief Says Electric Vehicles Are Overhyped

    ‘Akio Toyoda says converting entirely to EVs could cost hundreds of billions of dollars and make cars unaffordable for average people’

    – – –
    Trying to get climate-obsessed leaders to understand that is like trying to nail jelly to the wall. The roads will be full of ageing fuel burners by 2040, if not sooner.

  11. Gamecock says:

    Yes, oldbrew. Like Cuba, a fleet of well maintained antiques.

  12. Chaswarnertoo says:

    No shit, Sherlock! Her Maj’s Robbers and Crooks only just got there?!!!

  13. Coeur de Lion says:

    The IONITI consortium of hi end German car manufacturers have charging points at 0.69euros per KWh. So to top up say 40KWh costs say £25 for say 150 miles. My AdBlu Citroen diesel paying £20 p.a. road tax goes 450 miles for £55 and blimey fills up in five minutes. No contest

  14. Coeur de Lion says:

    Does anyone KNOW ANYBODY who owns an electric car and who is (a) not rich (b) does not own a property with a forecourt and garage with a power point? Speak up.

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