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11/17/2005
UK: Only 15 Percent of Car Tax Money Spent on Roads
Of the bilions collected from UK motorists in automobile taxes, only 15 percent is spent on maintaining the road network.

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The UK Road Users' Alliance, a group that includes the British Chambers of Commerce and the Federation of Small Businesses, released a study Tuesday showing that Britain's road network is critically underfunded.

"It is becoming clear that government is incapable, economically and politically, of addressing the road infrastructure challenge facing the UK," wrote Tim Green, the group's director. "The business of RUA is to enable the business of all road users to flow unhindered -- a route that leads to an increase in the wealth of the nation, better safety and less pollution."

According to the report, motorists pay £43.5 billion every year on gas taxes, the vehicle excise duty and the company car tax. Of this amount, only 15 percent, £6.58 billion, is re-invested in the roads that carry 93 percent of all passenger traffic in the country. The fuel tax accounts for the majority of government transportation revenue with the tax accounting for 67 percent of the cost per liter.

Rail travel, on the contrary, accounts for just six percent of UK passenger miles but receives thirty percent of automobile tax money.

"Lack of road capacity is damaging British business and stunting growth in the regions," Green concluded.

The full study is available at the source link below in a 365k PDF format file.

Source: PDF File Road File 2005 (Road Users Alliance, 11/15/2005)

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