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Government Takes Three Times Road Spending in Motoring Taxes

Government Takes Three Times Road Spending in Motoring Taxes

Yes, you read that headline right. Latest figures from the Department for Transport have revealed that the Government now takes three times more than the budget earmarked for spending on the UK’s roads through levies on the motorist.

It begs the question what do we pay our road tax, fuel duty – the most significant portion of the price of a litre of fuel at 70 per cent – further VAT on fuel and insurance premium duty for if it’s just going straight into the coffers of old Queen Lizzies’ HM Revenue and Customs?

road Government Takes Three Times Road Spending in Motoring Taxes

The shocking state of the UK’s roads can only be blamed on the previous couple of harsh winters to a certain extent – the fact that only one third of what is taken in taxes on drivers is ever reinvested in the country’s road network is the real reason for the fields of potholes and emerging trenches that litter the motorways, trunk roads and high streets of Great Britain.

Last year the Treasury raised roughly £27 billion in fuel duty – the tax levied on a litre of fuel by the Chancellor, George Osborne – with around £5 billion coming from road tax.

Of this £33 billion purse, just under £5.7 billion was spent on the UK’s local roads with £3.75 billion put towards the up keep of national roads – a rough total of £9.45 billion expenditure and only 27 per cent of the total collected by the Treasury’s coffers.

Not only is the miserly spending on keeping the national road network up to date shocking, the fact that Department for Transport figures highlight the take from road tax doubled from 1987 to 2010, and revenue from fuel duty more than tripled, compounds motorists’ anger further.

“This is highway robbery. Using so little of the taxes motorists pay on road upkeep is plainly unfair.

“Motorists are also paying the price as Britain’s potholed and increasingly dangerous roads take their toll, damaging tyres, wheels, steering and suspension.” said Neil Greig, Director of policy and research for the IAM.

AA president Edmund King added: “fuel duty alone contributes more than 5% of the public finances tax take, including council tax. The Treasury is beginning to find out how high fuel prices and tax have started to kill off the goose that lays the golden egg.”

As fuel prices rocket to an all-time high and sales at the pumps drop, the government has to realise it needs to cut its taxes on the motorist and seriously improve the service drivers of the UK receive for the financial cost of taxes on driving, or the self-perpetuating situation is set to continue on its current downward spiral.

 

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bG9nZ2VyX0xvZ28uanBnIjtpOjI7czo3MzoiaHR0cDovL21vdG9yYmxvZ2dlci5jby51ay93cC1jb250ZW50L3dvb191cGxvYWRzLzMtTW90b3JfQmxvZ2dlcl9Mb2dvLnBuZyI7fTwvbGk+PGxpPjxzdHJvbmc+d29vX3ZpZGVvX2NhdGVnb3J5PC9zdHJvbmc+IC0gQXV0byBOZXdzPC9saT48L3VsPg==