On Thu, 09 Sep 2004 18:17:19 +0100 someone who may be "Hel"
<[email hidden]> wrote this:-
Quoted message said:Having been on the roads a few years and harassed by a few motorists for
being freeloading scum ("When you start paying road tax and insurance,
THEN you can yell at me for cutting you up!"😉, and seen plenty more of
this sort of [censored] in the media - just what *is* the situation with
so-called road tax?
The way I understand it is that there is no such thing as road tax
Correct. A brief history of the reality of the Road Fund and the
Road Fund Licence.
1909 - The Development and Road Improvements Fund Act said that
taxes on motor vehicles and fuels could be used to fund improvements
to existing roads. The taxes were paid into the 'Road Improvement
Fund', later called the 'Road Fund'.
1920 - Finance Act and the Roads Act stated that all motor vehicles
had to be taxed, goods vehicles being more heavily taxed than
passenger vehicles, and that contributions to the cost of improving
existing roads could be taken from the 'Road Fund'. For roads of
national importance, up to 50% of the improvement cost could be
granted from the Road Fund. For 'Class II' roads (like B roads
today), 25% of the cost could come from the Road Fund.
1927 - Finance Act stated that cars could be taxed as 'luxury items'
and hence not all the tax went into the Road Fund.
1933 - Road Traffic Act gave local authorities the power to claim
the cost of providing road signs from the Road Fund.
1936 - Trunk Roads Act transferred the authority for trunk roads
from local authorities to a central body, the Ministry of Transport.
Until that point, roads were the responsibility of local
authorities.
1936 - Finance Act wound up the 'Roads Fund'. From then onwards, the
Ministry of Transport would have to bid for money from the Treasury.
Note that even when all motoring taxes were ring-fenced they did not
cover the costs of improving the roads. One could say that motoring
was subsidised by the general taxpayer, though note that cycling
also benefitted from improvements to the roads. Building new roads
has always been paid for from general taxation in the era we are
discussing.
Quoted message said:it is
vehicle excise duty, whereby drivers pay to use their vehicle on the road.
They pay to put their vehicle on the road. They do not pay to use it
on the road (though they do via other taxes).
Quoted message said:I was also under the impression that vehicle excise duty went more into
large roads, e.g. motorways and major A-roads, and local councils take care
of the smaller roads.
VED goes into Gordon Brown's big piggy bank, along with most other
taxes (including those on the drug called alcohol). He then spends
it as he sees fit. Some goes to central government road schemes,
some goes to councils and they spend some of this on roads. None of
the money goes on building or extending pubs, so motorists should be
careful they don't moan too much.
It suits the road lobby to pretend that there is still a Road Fund.
They can then perform incorrect calculations and "demonstrate" how
hard done by the poor old motorist is. However, there are two big
flaws with their argument. Firstly, taxation is not a form of
financial investment where one compares what one gets out with what
one puts in. If it was then the poor old drinkers are far more hard
done by.
Secondly, their calculations leave a lot of costs out. The money
local government spends on roads is an example. There is also an
implicit assumption in their calculations that the current and past
level of spending maintains roads in an adequate condition. This
assumption is false, which the road lobby know. They will not face
the inevitable conclusion though, which is that any proper
calculation would increase the expenditure to the levels necessary
to maintain the system.
Quoted message said:It really annoys me, I wouldn't mind paying a few quid in "road tax" just
to keep these idiots quiet.
It wouldn't. They simply use this "reason" because they can. Remove
it and they would use another "reason" to moan.
--
David Hansen, Edinburgh | PGP email preferred-key number F566DA0E
I will always explain revoked keys, unless the UK government
prevents me using the RIP Act 2000.