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New tax proposals for motorists

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It has been announced this week that motorists could start to pay a higher road tax if they drive on motorways.

As it stands motorists can pay anything from £20 to £200 for their vehicles road tax depending on what make and model they own. Over the past couple of years many motorists have purchased Eco friendly cars which cost £20 for the year in a bid to save money. However the new plans could now put an end to cheap tax.

The proposal is one of the plans the Government have to reform the Vehicles Excise Duty regime which raises £6 billion a year.  Prime Minister David Cameron spoke about the proposals earlier this year and now plans are starting to be put forward by ministers.

Under the new plans two rates of tax would apply depending on where a motorist drives. A lower tier would be applied for users of small roads and a higher charge would be issued for motorists that drive on motorways and other major routes.

Procedures will also be put into place for motorists that choose the lower tier tax options but continue to drive on motorways. A network of automatic number-plate recognition cameras would be introduced to catch anyone using motorways that shouldn’t be.

Motoring groups have now hit back at the new proposals saying it will become a preserve for wealthier motorists; there will be more traffic, slower journeys and more congestion.

The Department for Transport commented: “The department and Treasury are currently carrying out a feasibility study to review new ownership and financing models for the strategic road network. This is looking at how best we can secure investment in the network to increase capacity and boost economic growth.

“The Government has made clear it will not implement tolls on existing road capacity and has no plans to replace existing motoring taxes with pay-as-you-go road charging.”

 

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By Amanda Bainbridge