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A report by the Institute of Fiscal Studies (IFS) has concluded that there is a strong case for road charging taxation in the UK.
The study, funded by the RAC Foundation, said the Government's current system, which raises revenue through fuel duty and vehicle taxation, is set to fall from its current level of £38 billion.
The reason for the fall in revenues is attributed to the rise in more fuel-efficient and electric vehicles.
Although the Treasury has reported that duties are still rising, the Office for Budget Responsibility said that the current trend would result in a fall in revenues of £13 billion by 2029, necessitating a 50% increase in fuel duty to make up the difference.
The Treasury said tolls and/or pricing on existing routes would not be considered, while the IFS recommended a charging system to bill drivers by the mile and charge them more at peak times.
This comes as the Department for Transport announced that the Dartford Toll charge would increase from £1.50 to £2 for cars effective from October 2012 in order to fund free-flow charging and other congestion-reducing measures including analysis for a new Lower Thames crossing.
The charge is set to increase to £2.50 in 2014 when electronic charging is introduced, meaning vehicles will no longer have to stop.
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