Will a Two-Tier Road Tax System Make Our Highways More Dangerous?

The government announced this week that, as part of its review of the VED system, it is considering introducing a two-tier taxation policy for motorists. The scheme would see drivers who only drive locally and avoid major roads paying a lower rate VED than those who wish to drive on motorways.

It's important to be clear that this is only one of a number of ideas to help plug the gap in tax revenues that the current VED system will leave in the treasury's pockets. Government insiders have also insisted that no decision has been made and that ministers remain unconvinced by the proposal. But it has created quite a storm nonetheless.

Much of the reaction to this proposal has been focused on this system "pricing motorists off the roads". It's another tax on the motorist that they simply can't afford. Combined with the ever-increasing demands faced by small businesses, it could be enough to drive them out of business. Just this week, a study by the National Institute for Economic and Social Research (NIESR) for the campaign group FairFuelUK into the proposed fuel duty rise in January found, by going ahead with the increase, up to 35,000 jobs could be lost and economic growth cut by 0.1% as firms and motorists absorbed the impact. And these figures would only be worse if road tax increases were factored in on top.

But here at Navman Wireless, although we're concerned about the effect on SME's finances, it the impact on road safety that has us most worried. Motorways are statistically the safest roads to drive on and pricing people off them and onto urban and rural A & B roads will only increase the number of people killed or seriously injured in accidents. The numbers are chilling clear ??? you're 5 times more likely to be killed on a rural road than on a motorway. You're over 9 times more likely to be seriously injured on an urban A-road than on a motorway.

So it will be interesting to see how much say Patrick McLoughlin, the new Transport Secretary, will have in this matter. Speaking about the possibility of an 80mph motorway speed limit on Sky News earlier this year, Mr McLoughlin stressed the importance of road safety. He said: "What's very important is that we never lose sight about the issue of safety on our roads" and on the issue of road tolls "Where there is a special project which adds to additional road capacity, then tolling can be looked at".

Let's hope the government sees sense, that Mr McLoughlin isn't forced to eat his words and, more importantly, in their attempts to increase tax revenues they don't lose sight of road safety.