4x4 or small EV? 'Graded' road user charges under consideration

Tuesday 16 November 2021

There could be a variety of charges depending on which cars drivers use in Jersey in future, according to the Assistant Treasury Minister.

The Government is exploring the idea of bringing in a road user charge in the future, to align with the island's plans for sustainable transport.

In a Scrutiny hearing on Friday, Treasurer Richard Bell confirmed the Tax Policy Unit were now finalising their ideas for road user charges as part of a "wider package of measures" for Jersey's road in light of the climate emergency, and that this work would be complete within the "coming months".

Speaking at the hearing, Mr Bell said a piece of work was being developed by the Tax Policy Unit "to look at future taxation for motor vehicles and the use of motor vehicles" to account for the introduction of electric vehicles, and the fact that they would not be taxed on VED or fuel duty.

Pictured: Treasurer Richard Bell said the policy would be finalised in a matter of months.

When asked by Deputy Steve Ahier whether the charges on the roads would end up dissuading people from switching to electric vehicles, Mr Bell said it would be part of a wider range of measures brought about by Government, not just tax.

"The aim will be not to dis-incentivise the use of electric vehicles over and above the use of vehicles that consume carbon, but it will be part of a wider package of measures rather than just about taxation," he said.

Fiona Fraser, Deputy Director of Domestic Tax Policy added: "It would be a balance, it would start off low, because you’ve still got fuel duty revenues of course, so it wouldn’t just... have two very high charges for fuel duty and using the road."

Assistant Treasury Minister Deputy Lindsay Ash said there could be a variety of charges depending on which car a driver used.

"It’s also possible if you’re looking to do that to grade it - so if you had a small electric vehicle you’d pay £50, if you had a great big 4x4 you’d pay £400," Deputy Ash said.

Pictured: The policy will come as part of a "wider package" of measures to address the climate crisis.

Previously discussing the matter, Director for Environmental Policy Dr Louise Magris said that "the revenue generation policy board are looking at the potential revenue raising measures to be investigated."

She continued: "They have looked at an annual car charge, like the old days, but there is something slightly more sophisticated, which is a road-user charge.

"On balance, what is being proposed in the Government Plan is more of a road-user charge. You may own several cars, and some may be classic cars, but you can only drive one car at a time.

"So discussions were more focused on charging mechanisms that were around the amount of mileage that a person would cover, or use in some way, and the charge would be proportionate to that.

"It might connect into vehicle testing regimes, which would assess the amount of mileage that a vehicle has used."