The government risks an annual black hole of more than £30bn in its tax policy if it fails to find a meaningful alternative to fuel tax during the transition to electric vehicles (EVs), the environmental think tank has warned. Green Alliance.
He has asked Downing Street to draw up plans to fill the revenue gap as electric vehicles enter the mainstream market, such as road user charging and carbon levies.
The Green Alliance said: “A fiscal roadmap to net zero should pave the way for government action to address these fiscal realities. This is most urgent in the case of the fuel tax, which currently collects £30bn a year and will fall rapidly as the country’s car fleet is electrified.