Mobile home owners with an interest in motor caravan insurance may soon be bidding farewell to motor taxes if a suggestion by an influential financial group is taken seriously by the UK Government.
The Institute of Fiscal Studies (IFS) believes that getting rid of motoring taxes could free up the UK road system to such an extent that traffic jams due simply to traffic congestion could soon be a thing of the past. Motorhome owners shouldn’t get too excited though, the IFS idea will not lead to cheaper motoring for all, they just believe that charging motorists for the mileage they use may be the way forward for drivers in the UK. They do believe that a national road pricing levy would lead to cheaper fuel and less traffic congestion for some and see it as the best way forward for a Government that will start losing revenue from motorists in the near future unless they tax us even more.
Several recent reports predict that fuel efficient vehicles and a drop in car ownership due to the financial downturn will leave a gaping hole in Government coffers. Some reports suggest income from fuel duty in 10 years time will be over £10 billion lower than it is now and the incumbent Government must make plans for the shortfall sooner rather than later. Given such figures, the IFS say a national road pricing plan could be a better way forward than raising VAT or indeed fuel duty.
The IFS explained: “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.”