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Treasury report on tax increase due to electric cars

The Treasury has admitted taxes need to increase or services cut to compensate for a loss of fuel tax income.

Thanks to the emergence of electric cars, the Treasury in the UK has acknowledge the issue of a future loss of more than £30 billion from drivers.

In a new review, a debate over how driving should be taxed in the future includes the suggestion of charging motorists for every mile they drive.

However, the AA noted that this would a difficult political sell, and instead proposed a 'Road Miles' system to give people a free range of 3,000 miles - or 4,000 in rural areas - before the charge takes affect.

Meanwhile, as reported by BBC News, the Treasury also pointed to the economic benefits of tackling climate change, rather than prevous concerns about its impact on the economy.

They said: "Overall, in the context of the rest of the world decarbonising, the net impact of the transition on growth to 2050 is likely to be small compared to total growth over that period.

"It could be slightly positive or slightly negative."

And they added in the report: "Climate change is an existential threat to humanity. Without global action to limit greenhouse gas emissions, the climate will change catastrophically with almost unimaginable consequences for societies across the world."

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