MPs call for green new deal on motor taxation

24 July 2009

In a report which will be published today, the Transport Select Committee calls for the Government to reverse the growing gap between rising public transport fares and driving, which has become cheaper in real terms. It also calls for the introduction of a pay-per-mile charge for lorries.

Welcoming these two measures, which were called for by the Campaign to Protect Rural England (CPRE) in its evidence to the inquiry, Ralph Smyth, CPRE's Senior Transport Campaigner, said:

'Narrowing the gap between driving costs and public transport fares is essential if low carbon living is going to be an affordable option for more people. But the Government's plans will subsidise those who can afford a new car, while hitting hard those who need a car some of the time but cannot afford to buy a new, efficient one.'

Analysis by CPRE of the Government's White Paper Low Carbon Transport – A Greener Future, shows the cost of driving by 2015 for those who can afford the latest energy efficient cars will fall by at least 10%. For those who cannot afford a new, efficient car it will increase by 8%. The Government's ‘Ultra-low carbon vehicle' announcement in April proposed £250m to give purchasers of lower carbon cars subsidies of up to £5,000 per car and a further £20m for charging points in cities. Those who buy electric cars in cities will pay only a few pence a mile to drive and this is likely to increase traffic and demand for electricity.

Ralph Smyth continued:

'These plans run the risk of penalising those who live in rural areas. They will mean people who have limited alternatives to driving will pay more, while those who can splash out on a new electric car will find motoring the cheapest it has ever been. A proportion of the low carbon car fund must be ring-fenced for rural areas to set up low carbon car clubs and new taxibus services to give poorer people new low carbon choices.'

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