Government Backs Down On Pay-As-You-Drive Road Tax Scheme
Released
on: June 29, 2009, 6:13 am
Author: Staveley
Head
Industry: Financial
The
Labour Government has shelved plans to introduce a pay-as-you-drive
road tax scheme after receiving the largest petition ever on the
Downing Street website. Over 1.7million people signed the petition
opposing the proposed charges of up to £1.50 per mile to
use the road.
The
scheme would have seen vehicles fitted with electronic tags, or
black boxes, which would be tracked by satellite or roadside beacons,
registering the miles travelled. Charges would have been on a
sliding scale rising significantly during peak congestion times.
Initially
the scheme was intended to replace road tax and fuel tax, but
the Government withdrew that proposal when the Treasury expressed
concern about falling tax revenue. Ultimately the pay-as-you-drive
tax would have been in addition to all other existing taxes.
A
spokesman for Staveley Head, one of the UK’s leading HGV
insurance providers, said “This idea was ill-conceived
from the outset. Apart from the devastating commercial affect
it would have on business, the plan failed to make allowance for
so many sectors of the road-using public. For example, people
living in rural areas, and not within walking
distance of a bus route or train station, have no alternative
other than to use their vehicles.”
The
Staveley Head spokesman went on to say “Most of our clients
are commercial vehicle users and need to use the roads extensively
on a daily basis in the conduct of their business. The implementation
of an additional pay-as-you-drive tax would have had a crippling
affect on all of them, across the spectrum. The Government appears
to have seen sense on this issue, at least for the moment, and
bowed to the opinion of millions of angry voters.”
Edmund
King, president of the AA, approved of the Government step-down
and said “I think ministers have done the sensible thing
by dropping these plans. We surveyed 15,000 AA members and found
86% did not trust the Government to come up with a fair system
of road pricing.”
Local
road or congestion charging schemes, similar to the one in London,
may still be introduced by councils. However, following referendums
in Manchester and Edinburgh voters rejected plans to introduce
road-pricing schemes.
If
you want further information about this subject, or want to compare
truck insurance
or simply want a truck insurance quote, Staveley Head will be
pleased to assist.
Staveley
Head is one of the country’s leading HGV insurance brokers
and will give you all the advice and assistance you need, including
a cheap truck insurance quote, if you log onto their website at
www.staveleyhead.co.uk
For
further information on this or any other aspect of transport insurance
contact Staveley Head on 0845 071 9991 or email quotes@staveleyhead.co.uk
Contact Details: Staveley Head, Flint, United
Kingdom, 0845 071 9991 or email quotes@staveleyhead.co.uk, www.staveleyhead.co.uk
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