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Chronicle Live
Chronicle Live
National
Levi Winchester, Money Reporter & Nicole Goodwin

All cars could soon be fitted with 24/7 tracking devices under tax shake-up

All cars could be fitted with telematics devices under new proposals to shake up how vehicles are taxed.

A new report from the Transport Select Committee has issued recommendations to the government on how both fuel duty and vehicle excise duty can be replaced, the Mirror reports.

One recommendation states that ministers "must examine the role telematics technology can play" in a new road pricing system that takes into account journey times and car size.

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Telematics inside vehicles will also see "real-time data recorded and transferred to a pricing mechanism", the report said.

But it added: "Those options should be revenue neutral and not cause drivers, as a whole, to pay more than they do currently."

The report continues: "If motoring taxation is linked to road usage, the Committee has not seen a viable alternative to a road pricing system based on telematics.

"The government's preferred options should be submitted to an arm's-length body for evaluation."

However, they warned further assessments must be made as to how the new tools would affect "high-mileage drivers".

These include those working in the haulage industries or those living in rural areas.

The report continued: "The government must assess the potential effect of telematic technology on changing drivers’ behaviour and delivering its wider policies on air quality, congestion, public transport and public health.

"The government must assess the potential effect of a road pricing mechanism based on telematic technology on high-mileage drivers, such as road hauliers and those in rural communities, and on those least able to adapt to increased motoring costs."

The government has two months to respond to the recommendations.

Many young drivers already have telematics devices in their vehicles to lower insurance.

The black boxes track driver speeds, acceleration and braking to determine how safe drivers are on the road.

Data will also be used to give drivers personalised tips on how to improve their driving which could lead to lower fees if they are driving safely.

Professor Phil Goodwin, Senior Fellow at the Foundation for Integrated Transport added the technology can "deliver already" what is needed for road pricing strategy.

He said drivers could "have a single unit in vehicles for both insurance and road user charging payment systems".

Meanwhile, John Siraut, Director of Economics at Jacobs said a more complicated system was still "perfectly feasible to do".

This could move beyond a simple road pricing strategy to determine costs based on a range of factors and see fees dynamically set based on the time and duration motorists are on the road.

Motoring lawyer Nick Freeman has previously warned drivers may find a way to "cheat" the system if technology was installed in cars.

Back in December 2020, he told Express.co.uk drivers may find tools that "interfere with the black box".

This could see drivers "falsifying their mileage" and would find "illegitimate means to avoid paying tax".

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