Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Spend fuel tax funds on roads says RAC

UK motorists are paying the highest fuel taxes in Europe but only a quarter of this revenue is reinvested in the road network according to a Royal Automobile Club Foundation survey.

The RAC Foundation's analysis suggests that the cost of unleaded fuel for the average family has risen 3.4% since the end of April 2008, to £106 a month. The Treasury takes £64 of this directly to the in the form of duty and VAT.

UK Motorists pay the most fuel tax in Europe. The total tax revenue paid to the Treasury every year amounts to £45bn.
Last year only one quarter (26%) of the monies paid by UK motorists (excluding VAT) were spent on improving the road network.

The RAC Foundation's analysis also shows that the difference between taxes taken from the motorist and investment returned to the road network has soared over 400% since the mid 1970's.

In 1975 income from motorists (£11.6bn in 2006 prices) was broadly equal to spending on the road network (£11.1bn).

Today, the Government takes four times as much from the motorist as it spends on the roads, making the difference between tax and investment 460% greater than in the mid 1970s. Between 1990 and 1999 the revenue provided to the Treasury doubled to over £40 billion, but Government investment in roads has not come close to matching this increase in spite of the rapid growth in demands on the network.

Royal Automobile Club Foundation director Stephen Glaister said; "There is no way for the motoring public to assess what their taxes are buying them and this needs to change. The only target developed by Government to assess how congestion is changing on the worst parts of our motorway network has not been met, which demonstrates that investing in and planning for new capacity is essential."

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.

Related Jobs