‘Motoring tax is highway robbery’, says IAM

11.42 | 12 July 2011 | | 2 comments

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.”

Click here to read the full report, or for more information contact the IAM press office on 020 8996 9777.


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    I pay road tax to use the roads – if the roads become un-usable because of lack of upkeep, why should I pay road tax?

    S, Hertfordshire
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    I am quite bewildered that a mature organisation such as the IAM should naievely believe in fair takes ie that monies raised by fuel tax, vehicular and green taxes should be spent on road matters. Other countries tax their people in other ways, this country has always set a high tax on car usage. etc. So what if little of it comes back to the roads? There is little or nothing we can do about it, or as another thread has said, they are our elected representatives, working for us on our behalf and therefore we can vote them out of office. Then the next government will do exactly the same thing, as have successive governments since well back into the last century.
    Come on IAM – Wake up.

    Bob Craven
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