Mixed Views Over Proposed Road Tax System For Young Drivers In The UK

InsureYourMotor.com, which is a on of the leading insurance companies specialising in young drivers published today a online survey on the proposed new road tax system. This survey found that the under 25s are divided about the newly proposed ‘pay-by-the-mile’ road tax system. 57% of the respondents do not think that tax discs should be scrapped in favour of the new scheme as people who drive for a living would a be a lot worse off. However, 43% are in favour of the ‘pay-by-the-mile’ scheme as people who do not use the roads very often should not be charged as much as people who do. This new scheme has been proposed due to the success of London’s congestion charge, which started in February 2003 and has made a national scheme seem viable in an attempt to cut congestion, raise revenue and promote greener motoring. David Harlow, MD of insureYourMotor.com comments: ‘The proposed new tax will affect young people a great deal and the survey results don’t surprise me. On the one hand, it is advantageous for people who are studying, don’t drive very far and are already trying to cope with average living costs of £9000 a year on no income. However, 78% of the people we insure use their vehicles for work and commuting so this tax will eat into their salaries and increase costs of living even further, especially in London where living costs are already over 20% higher than other parts of the UK.’ The scheme, which will involve exchanging tax discs for motorists paying as and when they travel, was proposed in February after a study commissioned by The Economic and Social Research Council.

Date - 23/11/2004