NSHE CARS British roads are changing. According to the World Economic Forum, a global think tank, more than one-tenth of new cars sold in 2020 were powered by electricity. This is below the levels found in some other parts of Northern Europe, but four times higher than in the United States. And the transition from fossil fuels to electricity seems to accelerate. Government plans to decarbonize the economy require a number of battery-powered electric vehicles (EVs) On British roads, it will rise from the current approximately 100,000 to 3m by 2025, 10m by 2030 and 25m by 2035.
This rapid shift is necessary for the UK to meet its international obligation to reduce carbon emissions. However, an analysis by the think tank Tony Blair Global Change Institute highlights three looming risks: financial holes, widening inequality, and increased traffic congestion. All three results are due to the way driving is taxed in the UK, primarily fuel.This will drive EV Much cheaper than a replacement. The median UK driver currently spends a total of around £ 1,100 ($ 1,520) annually on fuel and vehicle excise taxes ($ 1,520).VED), Most personal vehicles are taxed, of which about £ 750 is tax.But a typical battery-powered owner EV, Exempt VED, Spend only £ 320 a year, of which only £ 20 is tax.
These much lower running costs encourage drivers to make the switch. But, as is often the case with “sin tax,” this is a sacrifice of its own success. Part of the point of sin tax is to encourage people to become more virtuous, but the sooner this happens, the faster your income will be depleted. Annual loss of tax revenue from by 2030 VED Fuel tax is about £ 8 billion GDP.. That’s about two-thirds of what was raised by the politically controversial increase in national insurance (payroll tax) announced on September 7. Cumulative costs of public funding are due to zooming in over £ 50 billion by the end of the decade (see graph).
Savings are not evenly distributed.Wealthy households tend to own new cars, so they are most likely to own one EVNS. Without major overhaul, the tax burden on non-wealthy British people will be significantly lower than ever in the next few years.
The final problem predicted by the Institute for Climate Change is increased congestion.Switch to EV It reduces the effective cost of fuel for driving additional miles by about 70%. in short, EVAs s becomes more common, drivers are likely to drive more. The Ministry of Transport predicts that passenger mileage will increase by 30% and its share of traffic jams will increase from 7% to 12% over the next 20 years, unless the vehicle tax is reformed.
The Treasury has long closed the financial gap caused by lower smoking rates by aggressively raising tobacco obligations. But fuel taxes are much more politically sensitive. The Conservatives are enjoying higher support among car owners and have frozen that rate for the past decade.
The most obvious solution is to shift the taxable base for driving from fuel to road use. Road pricing systems charge the heaviest users the highest fees. It also enables variable prices in crowded areas and helps alleviate traffic congestion. However, such proposals are not very popular with voters who own cars. Perhaps as early as 2023, the general election is scheduled, so the conservative government is unlikely to run the risk of upsetting core voters. Public policies such as British roads are facing a deadlock. ■■
This article was published in the UK section of the print version under the heading “Heading to dgridlock”.
British are skyrocketing electric cars
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