cybertect
It's grim up north (London)
editor said:Your car licence doesn't pay for roads - it is a tax on a luxury item and forms a small part of general taxation.
The tax disc has never paid for roads, other than by adding to the general taxation pool, any more than the tax on alcohol subsidises pubs.
Hmm. I'd not be quite so sure about that. There's a historical pointer in the name: 'Road Fund Licence. While admittedly has not been the official term since 1936, it's still in common use, even in government.
When the original Road Fund was proposed in 1909, with taxes on vehicles and fuel to pay for it, Chancellor Lloyd George was asked by the leader of the Opposition:
"Is it intended to go to general revenue? If it is going to roads, we think it a fair proposition."
Lloyd George replied:
"My proposal is the whole of the moneys should go to the roads"
Anyhow, enough history. How do things work out nearly a century later?
According to the Department for Transport, the total expenditure on construction and maintenance of roads in the UK, including lighting, safety measures and the costs of depreciation, by both national and local authorities, for the financial year 2003/4 was £5,435 million.
[Source: DfT Transport Statistics Great Britain 2005, pp 131/132]
In the same period, Vehicle Excise Duty raised £4,937 million, Duty on Fuel raised £22,561 million, a total of £27,498 million.
Leaving a surplus to the Treasury of £22,063 million.
N.B. This would exclude the contribution of VAT on fuel sales (approx £4.9 billion) to the Exchequer's coffers and other sources of income to government such as parking fees/fines, the Congestion Charge, etc.
In the same period, central government spent £2,650 million on rail capital projects, with £1,091 million on rail revenue support.
Local government spent £648 million on public transport, with an additional £1,479 million in revenue support to public transport (N.B. this rose to £2,803 million in 2005) and a further £657 million on Concessionary fares.
[Source: DfT Transport Statistics Great Britain 2005, page 25]
The total spending on public transport by UK government was £6,525 million, approximately £1.2 billion more than it spent on roads.
If we assume that Car Tax and Fuel Duty are helping to pay for the running of public transport (which is a stated aim of the government) and deduct this and the spending on roads from the income raised by Fuel Duty and Road Tax alone, a surplus of £10 billion is still available for the general public purse. £15 billion if you include the VAT paid on fuel.
In any case, taxes on vehicles do not cover the full cost of roads and traffic and the damage they do. Therefore, everyone, including cyclists, subsidises motorists out of general taxation.
While you have a fair point that there are other unaccounted environmental costs of motor vehicles, I do not think it can be justifiably said that non-motorists are subsidising cars out of general taxation.