ABSTRACT
This chapter examines the motoring taxation policies as they apply to car use and describes that, for each measure, a reduction in revenue can be expected in the future. It considers the likely sources of controversy about motoring taxation in the future. The chapter explores that the range of efficiency exhibited by the car fleet is widening. It argues that the cost of motoring is likely to increase, due to growing maintenance demands and the adoption of entirely new technologies that are potentially more expensive. Increases in tax rates, together with growth in vehicle ownership and road traffic, have been the key factors leading to real-terms increases in motoring tax revenues in recent years. The policy of fuel duty increases became known as the 'escalator’. The new equipment limits the extent to which low-income motorists can extend both the working life of cars and their affordability by practising amateur maintenance.
