Legally ringfence Vehicle Excise Duty revenue for transport infrastructure only

Background

Vehicle Excise Duty was originally established to fund road maintenance and construction. Since the ending of its hypothecation in 1936, revenue has no longer been exclusively allocated to road-related projects. We believe VED should be ring-fenced solely for road construction and maintenance.

Additional details

Poorly maintained roads pose a serious risk to public safety. Potholes, degraded surfaces, unclear markings, and failing infrastructure can increase the risk of accidents, vehicle damage, injuries to motorists, cyclists, and pedestrians, and emergency service call-outs, affecting vulnerable road users and the wider public. Ring-fencing VED for road infrastructure could improve transparency, ensure motorists’ contributions directly benefit the road network.

Where it’s popular

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