Home Business NewsBusinessAutomotive NewsLabour’s road tax raid: Drivers face ‘wild west’ of new tolls under damning plans

Labour’s road tax raid: Drivers face ‘wild west’ of new tolls under damning plans

by Amy Johnson LLB Finance Reporter
15th Sep 26 11:19 am

The UK government is considering rules that could allow private companies to impose tolls on a wider range of roads, prompting warnings that motorists could face additional charges as the cost of running a car remains under pressure.

Transport Secretary Heidi Alexander introduced the Highways (Financing) Bill earlier this month without a written Parliamentary statement. The legislation would establish a framework under which private companies could receive licences to charge motorists for using roads they build, expand or maintain.

The proposals would apply to trunk roads in England and include provisions for a “special administration regime” for licence holders, alongside rules governing the collection and enforcement of tolls imposed under existing legislation.

Under the proposed system, licences would initially be issued by the Office of Rail and Road, although the Transport Secretary would retain the final authority to consent to a licence. Licences could operate for a specified period or until revoked by the regulator or Secretary of State.

Private companies could use toll revenues to recover the costs of constructing new highway capacity or maintaining existing infrastructure.

The proposals have drawn criticism from motoring organisations and opposition politicians, who argue that drivers are already facing a growing number of charges.

Richard Holden, the shadow transport secretary, accused Labour of preparing a “stealth tax bonanza” ahead of Prime Minister Andy Burnham’s first Budget next month.

He also pointed to plans for road-user charging for electric vehicles. Electric Vehicle Excise Duty, approved under the previous government, is due to begin in 2028, with electric car drivers charged 3p per mile and plug-in hybrid drivers 1.5p per mile.

Fuel-duty increases are also expected to add to motorists’ costs, with the government planning a 3p-a-litre rise in January after abandoning proposed cuts later this year.

Mr Holden said: “Labour is trying to slyly slip out plans for charging for road use with no thought as to even capping what could be charged while potentially creating a wild west of punitive new charges.

“It’s clear Labour are trying to dodge accountability as they keep hammering away at drivers who they simply see as a cash cow.”

The RAC estimates that there are 20 toll roads in the UK, 18 of which are river crossings, with most existing tolls located on motorways and A-roads.

Edmund King, president of the AA, said motorists would support investment in the strategic road network but warned against allowing private operators to impose excessive charges.

Motorists already pay about £34bn a year through fuel duty and road tax, he said, meaning additional charges could become a “toll too far”.

The Department for Transport said the proposed system would not give companies an unrestricted ability to introduce charges.

A spokesperson said: “A licence holder would not be able to introduce new tolls without permission and any tolls introduced under this legislation will be capped and independently regulated [by the ORR].

“This Government is improving conditions for drivers with a record £24-billion investment to fix roads and mend potholes, traffic jam-busting infrastructure like the Lower Thames Crossing, and launching the first Road Safety Strategy in a decade.”

The legislation comes as governments increasingly examine road charging as a way of funding infrastructure and replacing revenues threatened by the transition away from petrol and diesel vehicles. For motorists, the debate is becoming less about whether road use will be charged and more about how widely — and at what cost.

Leave a Comment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]