The Government risks a £30bn-plus yearly black hole in its tax policy, if it fails to find a meaningful alternative to fuel duty during the transition to electric vehicles (EVs), warned environmental think tank Green Alliance.
It has called for Downing Street to come up with plans to fill the revenue gap as EVs move into the mainstream market, such as road user charging and carbon levies.
Green Alliance said: “A tax roadmap for net zero should prepare the ground for Government action to address these fiscal realities. This is most urgent in the case of fuel duty, which currently raises £30bn a year and will rapidly diminish as the nation’s car fleet electrifies.
