Thursday 7th July 2011
Be Wiser Insurance

Despite being an incredibly unpopular issue the government is still considering introducing road charges. However, their calculations have shown that some of the revenue generated may be used to give home owners a break and reduce their council tax bills.

Reports have suggested that the biggest area of resistance to road charging is public opinion and so the government are considering options which would sweeten the deal and bring the populace around.

Initial research indicated that offsetting a national road charge by reducing fuel duty and road tax could encourage road use and the government has been considering alternatives. A reduction in fuel duty would mean that the number of rural road users may increase in area where the road charges are the least.

Unfortunately, those reliant on their vehicles would face increased running costs which may outweigh any financial gain in other areas.

One major beneficiary of the scheme would be local authorities and ministers estimate that the change in funding has the potential to reduce the costs of maintaining roads.

National road charging is expected to raise around £10 billion a year across the UK, with a third spent on public transport, a third on the system itself and a third to local councils.

"It is far better to tax activities you want to discourage, such as driving in towns, than tax people for owning property," said a spokesperson for the government.

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