Driving test

The current system of motoring taxes in the UK is neither economically efficient, nor fiscally sustainable in the long term. Current taxes do not capture the variation across time and location in the social costs associated with motoring. Future revenues from motoring taxes are also likely to fall as a share of national income as cars become more fuel-efficient. Researchers at the Institute for Fiscal Studies, in a report funded by the RAC Foundation, recommend a move towards a system of road pricing. This would provide a more sustainable tax base alongside a more economically rational way of taxing motoring.

This article was published in 'Britain in 2013 - the nation in focus'. The magazine showcases the diversity of ESRC-funded research on the state of the nation. It is a mixture of academic opinion pieces alongside informed journalistic writing, offering a concise analysis of research and topical issues concerning Britain today. Britain in 2013 reflects on, and offers possible solutions to, the most pressing problems British society faces.