The Government spends only about one-third of its total tax revenue from road users on roads and local public transport, according to the IAM’s latest report.
The report, ‘Motoring taxation and public spending’, shows that since 2002 the Government has spent more on rail infrastructure than road infrastructure, although rail is used for only 7% of all passenger travel; and that motorists and businesses spend 10 times more on buying and running their vehicles (£42,700m) than the Government spends on roads (£4,807m).
The report also reveals that 62 pence of every pound spent at the pump is tax in the form of fuel duty and VAT; and that while spending on local roads has increased substantially, it is likely to fall considerably from now on.
Neil Greig, IAM director of policy and research, said: “Using so little of the taxes motorists pay on road upkeep is plainly unfair. Motorists are also paying the price as Britain’s potholed and increasingly dangerous roads take their toll, damaging tyres, wheels, steering and suspension.
“Cuts are clearly going to have an impact on transport investment, but as more roads become more potholed and dangerous, spending on infrastructure now will save money in the long-term.”