Recently the debate about government plans for pay-as-you-go road charging has resurfaced.
I have never been in favour of this scheme. Motoring in the UK is an extremely expensive activity already, with the poor quality and capacity of the road system only adding to the frustration. A large part of my opposition to the plans has been that while suggesting that everyone stops driving may be fine if you live in Westminster, with the huge public transport infrastructure there, it's not so feasible if you live in a rural area, where public transport is non-existant and people have no choice other than to drive in order to get to work.
However, I thought about the sums a bit and now I'm not so sure that the rural argument necessarily stands up.
The plans, as unveiled by the Department for Transport in 2005, suggested that either road tax, fuel duty or both would be abolished if road charging was adopted and that the cost on rural roads would start at 2p/mile.
The current rate of fuel duty, as set by the 2006 Budget, is 48p per litre. For an average family car with a fuel consumption of 35mpg this equates to 6.2p/mile. This means that if that car was only used for travelling to work outside peak hours on rural roads, the driver would actually be 4p per mile better off if fuel duty were abolished.
Similarly, the average rate of car tax is currently £125 per year. If the car is driven for 10,000 miles per year (about average mileage) than that equates to 1.25p per mile, so the driver would only be £75 a year worse off if they drove 10,000 miles on rural roads and car tax was abolished.
Given that the economics for rural communities don't seem quite as bad as they did on first sight, maybe the introduction of pay-per-mile road charging wouldn't be such a bad idea?
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