Electric cars: call for tax on road usage to cover lost fuel revenue

IFS warns the switch from fossil fuel to electric will cause tax revenue to drop 28bn

Britain should move to a system of road pricing to combat congestion and compensate for the 28bn loss of revenue from fuel duty as the country makes the transition to electric vehicles, the Institute for Fiscal Studies has said.

The thinktank said the government's pledge that the UK would reach zero net emissions by 2050 meant the tax take from petrol and diesel would shrink to nothing over the coming decades and a new way to raise money from drivers was needed.