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Downing Street fears that the fuel tax, which generates about 1.2% of national income a year, will no longer be a good source of government revenue for net zero.
In Wednesday’s spring manifesto, Chancellor Rishi Sunak cut fuel taxes for the first time in more than a decade.
A government spokesperson said; “The government has previously committed to ensuring car tax revenue keeps up with the changes brought about by the switch to electric vehicles, while maintaining an affordable transition for consumers.”
Toll roads may be introduced as the number of electric vehicles increase.
Toll roads are common in Europe, especially in France, where 25% of the country’s traffic uses toll roads – although these are numerous because motorways are run by private companies, while the UK government operates all major access roads.
One of the options that the government could look into is the introduction of tolls on the highway network in the medium term.
Last month, the All-Party Public Transport Committee proposed an alternative that would use technology to charge drivers based on distance driven, traffic levels and vehicle type.
There are fears within the government that if tolls are levied only on city roads, not just major roads, there will be a backlash from the public and Members of Parliament.
In October 2021, the Treasury said that the UK may need to introduce new taxes to offset lost revenue from moving away from fossil fuels.
After Boris Johnson unveiled his net zero plan, the Treasury said: “The biggest impact of the transition on public finances will come from permanent behavioural changes affecting the tax system.
“The main concern is the loss of substantial tax revenue as the economy moves away from fossil fuels.”
Sainsbury’s is investing in smart charging as DHL orders 270 electric vans.
It’s going to be a busy week for commercial electric vehicle adoption, as DHL orders 270 electric vans for its last-mile fleet in the UK and Sainsbury’s invests in smart charging of electric refrigerated trailers.
The logistics giant this week announced plans to add 270 new all-electric vans to its UK fleet by September.
The company chose the Ford E Transit model, which has a range of up to 140 miles and a payload of about 1,000 kilograms. The 4.25-ton electric vans will be used to replace diesel trucks nearing their end of life.
The new vans will serve locations including London, Manchester, Leeds, Birmingham, Bristol, Southampton, Liverpool, Sheffield, Edinburgh and Glasgow, after DHL introduced 50 electric vans to DHL Express’ UK fleet last year.
To support van charging, DHL has installed charging infrastructure at 10 of its service centres and plans to offer 13 more “Electric Vehicle-ready” service centres by the end of 2022.
DHL’s parent company, Deutsche Post DHL Group, aims to fully electrify 60 percent of its global last-mile delivery fleet by 2030. In the UK, there is a more ambitious target of ensuring that all UK courier vehicles are electric by 2030. These targets underpin a group-wide net zero target with a deadline of 2050.
Richard Crook, DHL Express Fleet Director, said: “We are delighted to share another update on our journey towards an all-electric fleet. We are very proud of the progress we have made so far in reducing the environmental impact of our fleet, and the next phase. The implementation is a positive step towards achieving net-zero emissions by 2050.”
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