Thank you for contacting be about vehicle taxation.
I am aware of speculation around the introduction of a 'pay as you drive' 'road tax'. It is, of course, already the case that motorists pay fuel duty on the petrol or diesel they purchase so those who complete significant mileage currently pay more in fuel duty than those who drive fewer miles.
The London Assembly Transport Committee has launched an investigation into the future of smart road user charging in London to consider the practical issues around the potential introduction of smarter road user charging in London. Although this is ultimately a matter for the London Assembly and the committee, I understand that this work will focus on whether the current road user charging systems in London require reform, how smarter road user charging might differ from the current daily charges, how charges for driving in London might be varied for different types of journeys and what strategies smarter road user charging might support?
Any decision to modify our tax regime is a matter for the Treasury and careful consideration will be given to any potential reforms in future budgets. I understand that the Government keeps all taxes under review and I shall be following the developments on this issue closely.
Thank you again for writing to me.
With best wishes.
Jonathan Lord MP
Member of Parliament for Woking