The Chartered Institute of Logistics and Transport UK (CILT(UK)) is urging the government to start talks with experts to tackle the impending black hole in income from fuel duty.
It comes as more drivers switch to electric vehicles, and the current £28bn from fuel duty on petrol and diesel vehicles looks set to decline.
The recommendation comes from a new report titled ‘Paying for Roads’, which includes recommendation within CILT (UK) in line with concerns and views expressed by the sector and its members.
It states the government should consult with a wide body of industry experts, as well as other key stakeholders, to explore future road funding options.
The paper also outlines potential routes the government could take to tackle the issue: analysing past schemes, public opinion, media and political views.
CILT (UK) has advised a scheme to be implemented and led by the Chancellor alongside a cross-government approach with The Department for Transport, Department for Energy and Net Zero, and The Department for Housing, Communities and Local Government.
The news comes as the government has added the luxury car supplement as a revenue raising tactic for VED, set at £195 after 1 April 2025, and will now include hybrid and electric car owners for the first time alongside ICE owners. But there is concern this may drive down EV sales as a result.
Director of Communications and Policy for CILT(UK), Daniel Parker-Klein said:
“We at the CILT(UK) believe that through proper consultation and thoughtful design, an approach can be created which motorists will view as reasonable and balanced – treating all drivers fairly. However, we must ensure whatever scheme is introduced is simple and easy to understand, inexpensive to collect, and resistant to fraud.”
“Any proposal should be national but allow for local input and be designed to incentivise more efficient use of infrastructure, particularly as roads are currently not used to capacity – for example, with single occupancy vehicles.
“Finally, a new charging scheme should aim to encourage motorists to change their behaviour rather than penalise them. This will naturally help motorists consider alternatives to driving – with a gradual shift towards public transport – easing pressures on our roads and supporting environmental goals.”
Chair of CILT(UK)’s Public Policy Committee, Sue Terpilowski, explained:
“The transition to electric vehicles represents both a challenge and an opportunity for our national transport infrastructure. Whilst we face a significant funding gap from declining fuel duty revenues, we now have the chance to develop a fairer, more sophisticated approach to road pricing.”
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