Think tank calls for pay as you drive charging

The Telegraph reports on IEA research

The creation of tolled express lanes is one of a series of reforms advocated by the Institute of Economic Affairs in the study, Moving the Road Sector into the Market Economy, which would overhaul the way in which motoring is paid for, culminating in the introduction of pay as you drive charging.This would see drivers being charged up to seven pence a mile to use local roads, with the price varying according to the time of day. In return volunteers would get a discount of up to £150 on their tax disc.

Mark Littlewood stated, "Rather than taxing motorists so heavily, we should encourage moves to a pay-as-you-go system of pricing. Imagine if, instead of paying directly for each purchase, we all paid for annual season tickets to our local supermarket and could then just help ourselves to whatever we wanted.

The result would be gross inefficiency and even chaos. To keep our traffic flowing and to encourage the appropriate expansion of our transport network, we need road pricing to begin to replace upfront, one off taxes."

Read the full article here.

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