Tuesday 15 May 2012

Road Pricing

A new report from the IFS makes the case for road pricing:

"Such a move would generate substantial economic efficiency gains from reduced congestion, reduce the tax levied on the majority of miles driven, leave many (particularly rural) motorists better off, and provide a stable long-term footing for motoring taxes without necessarily raising net additional revenue from drivers," the IFS said.

No arguments here, but the political economy remains horrible: economic efficiency arguments are a hard sell relative to emotive ones around freedom, impact on business etc. I don't know if there is any evidence to suggest that the argument that this would replace other vehicle excise taxes would be enough to placate those so bitterly opposed. Depressingly, I suspect not.