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24/07/2009
A group of MPs has slammed the Government's handling of road taxes, claiming that bungled increases to Vehicle Excise Duty have "tarnished the image of environmental taxes".
The Transport Select Committee's report, Taxes and charges on road users, says that in order to win back road users' trust, the Government must justify more consistently the way it raises and spends money from them.
And the cross-party committee backs traditional fuel duty - designed to tax straightforward car usage - as a fairer approach than taxing car ownership, claiming it is more likely to foster greater fuel-efficiency and lower emissions.
It also called on the Government to institute a low level pay-per-mile scheme for lorries - including those registered abroad.
Meanwhile, MPs suggest that revenue generated by local schemes should be earmarked for spending in that area, to allow road users to see where their money is going.
Responding to the report, RAC Foundation director Professor Stephen Glaister said that despite motorists' opposition to local road charging schemes, national road pricing - with pay-as-you-go charges being offset by reductions in fuel duty and road tax - "might become unavoidable" to cut congestion.
He called for the Department for Transport to develop a coherent strategy for introducing such charges, rather than policy seemingly reflecting the Treasury's "sole intention of shoring up the nation's ailing finances".
"Whilst the solutions might be complex, the problem, as the committee has recognised, is simple," he said.
"Too many vehicles on too little road space and no clear explanation to drivers of exactly what they get in return for the £45 billion or so they contribute to the Exchequer each year."But for any radical policy to be successful, public trust in the politicians introducing it is essential - that trust is currently lacking."
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