Report says motorists are reducing car use because of higher costs
Thu 31 May 2012
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The latest annual Report on Motoring by the RAC says that motorists are continuing to give up important day-to-day activities by car as a result of the high cost of motoring. The report, based on a survey of motorists' opinions also says that support for higher motorway speed limits has declined. A separate report for the RAC Foundation by the IFS says that the uptake of more low carbon cars is hitting Treasury revenues and suggests that the shortfall could be made up through taxes on mileage and congestion.
The RAC Report on Motoring 2012, which is based on a survey of 1002 British drivers, says that the cost of motoring remains the primary concern for drivers in 2012, 30% of motorists say this is their primary concern, and 61% that it is one of their top five motoring concerns.
Meanwhile, support for a higher speed limit on motorways ha fallen from 75% in 2010 to 62% in 2012. Most motorists also believe that if the motorway limit is increased to 80mph, most people will drive at 90mph.
According to an IFS report - 'Fuel for Thought' - by the Institute for Fiscal Studies (IFS), the drive to promote greener, more efficient motoring will have the result of cutting income to the Treasury in 2029 by £13bn hole compared with the current level.
Tax breaks for electric cars and lower fuel consumption from efficient vehicles will mean a collapse in income even as road traffic increases, the report says.
The report recommends a move to a widespread system of road pricing. It says revenues raised in this way could be used to reduce other motoring taxes.
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