Thursday, 23 August 2012

Motorists already fund all of public spending on transport...


The IPPR have taken to the airwaves calling for motorists to be taxed until the pips squeak (or something like that). However, the true picture is that taxes on motoring - fuel duty and road tax - already provide every penny that the government spends on transport. Yes folks that's the money spent on looking after roads as well as all the subsidies to keep trains and buses going.

Fuel duty raises around 4% of total government revenue - for 2010/11 this was some £27.3 billion.

The vehicle excise duty (road tax) raised some £5.8billion in the same year giving a grand total of £33.1 billion.

I haven't included a proportion of VAT - on new vehicles, on the maintenance of vehicles and on fuel - but we can guess at a few more billion from this source. Motorists are - with smokers and drinkers - a grade one cash cow for the government.

And, of course, it all gets re-invested in the roads!

In the same year that the £33.1 billion was raised in income from motorists, the total budget for transport was £23 billion - the treasury is clearing a cool £10 billion from motorists!

And - as we know - much of that £23 billion budget goes on subsidising public transport - about £12.5 billion. Which - once you've taken out the bits spent on cycling, air transport and assorted oddities - leaves about £9.5 billion for the roads.

So next time you hear some self-righteous greeny from a think tank saying we should tax motorists more, tell them politely to go away.


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