Road pricing needed to plug tax deficit left by electric cars

A pay-per-mile road-pricing system must be introduced by the end of the decade because the switch to electric cars risks leaving a GBP40 billion hole in the public finances every year, MPs have been told.

Research to be submitted to the cross-party transport committee today said that charges based on emissions, vehicle weight and traffic levels should replace road taxes by 2030.

It said drivers should be incentivised to opt into the system from 2023 to avoid a “big bang” switch at the end of the decade, which could be politically difficult to deliver.

The report from Greener Transport Solutions, a not-for-profit group, overseen by academics, said that some form of road pricing “will be essential” as the country shifts towards electric vehicles.