Motoring taxation and public spending

‘Motoring taxation and public spending’ is an IAM report which looks at how the taxes paid by motorists are spent.

The report reveals that the Government spends about one-third of its total tax revenue from road users on roads and local public transport.

The report also shows that since 2002 the Government has spent more on rail infrastructure than road infrastructure, although rail is used for only 7% of all passenger travel; and that motorists and businesses spend 10 times more on buying and running their vehicles (£42,700m) than the Government spends on roads (£4,807m).

According to the report 62 pence of every pound spent at the pump is tax in the form of fuel duty and VAT; and that while spending on local roads has increased substantially, it is likely to fall considerably from now on.