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The Government must improve the way in which it justifies taxes on road users to rebuild public trust and could offer a simpler road tax system, according to the latest report from the Transport Select Committee.
Published today, the Taxes and Charges on Road Users report examines the Governments plans for UK road and vehicle taxation.
The committee, which is made up of a cross-party group of MPs, is led by chairman Louise Ellman MP. Speaking at the launch of the report she said: "The Government handled a phased set of increases to vehicle excise duty so badly they tarnished the image of environmental taxes.
"We believe taxation based on car usage-through fuel duty-remains fairer than any approach based on car ownership and does more to encourage fuel efficiency or reduce CO2 emissions. We recognise that economic factors will limit how much revenue can be raised by this method. We call on the Government to develop other measures to address the problem of congestion.
"Stronger linkage between Treasury policy and Transport Ministry policy is essential if Government is to send clearer signals to UK motorists about congestion and carbon emissions while encouraging walking, cycling and greater use of public transport.
"Effective reform will however elude any Government until the public is given explicit and comprehensive information detailing how much money is raised through this route and how it is used."
Responding to the report, director of the RAC Foundation Professor Stephen Glaister said: "Whilst the solutions might be complex, the problem, as the committee has recognised, is simple. Too many vehicles on too little road space and no clear explanation to drivers of exactly what they get in return for the £45 billion or so they contribute to the Exchequer each year.
"We are pleased the committee agrees with us that there should be a shift from taxing car ownership towards charging for road usage. Every other public utility is charged for on the basis of use and there is a strong argument for doing so when it comes to roads. To an extent fuel duty already does this.
"Whilst local charging schemes are currently meeting with vehement opposition from drivers, in the long run some sort of national road pricing - where pay-as-you-go charges are offset by reductions in vehicle tax and fuel duty - might become unavoidable to eradicate the growing menace of congestion."
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