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Re: [NewMobilityCafe] fuel tax and transport assessment

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  • Charlie Lloyd
    Simon s figures are probably in the right range, however when these are multiplied by all the users over a year and then added for the next 30 years with a
    Message 1 of 2 , Feb 22, 2005
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      Simon's figures are probably in the right range, however when these
      are multiplied by all the users over a year and then added for the
      next 30 years with a 3.5% discount rate and a further 45 years at 3%
      then we are talking big sums of money.

      This part of the assessment only looks at government income and
      expenditure. Privatised bus services may be supported by ongoing
      subsidy, expansion of these and all other public transport will be
      seen as revenue negative. These figures are also calculated over the
      same time periods and discounts.

      On schemes that project large modal shifts and probably low user time
      savings the "loss" to revenue will stand out as a major item on the
      appraisal summary table seen by the decision makers - who will
      include treasury officials at some level.

      There is more detail on how this is supposed to work on the
      http://www.webtag.org.uk/ site, particularly at:

      http://www.webtag.org.uk/webdocuments/3_Expert/5_Economy_Objective/3.5
      .1.htm

      It is strange that moving away from decision making based on Cost
      Benefit Analyses which do not include tax and revenue changes to a
      "fairer" system of appraisal tables seems to have had a perverse
      result. As such a large amount of revenue is tied to the amount of
      fuel we burn then from the treasury point of view the more waste, the
      more pollution the better it is.


      --
      Charlie Lloyd


      On 21 Feb 2005 at 16:07, Simon Norton wrote:

      > Thanks for drawing my attention to that article in The Times.
      >
      > However, I am surprised that the argument has significant force. I don't
      > have the relevant figures to hand, so if anyone can correct my guesses
      > below, please do.
      >
      > Petrol costs 80p per litre.
      > 3/4 of this is tax, i.e. 60p per litre.
      > The average car in an urban area does 5 miles per litre, so the tax take
      > is 12p per mile. Average car occupancy is 1.2-1.5 people, so the tax take
      > per person is 8-10p per mile.
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