16:30 Elliot Colburn (Carshalton and Wallington) (Con)

Before I bite into some of the meat of this policy, I want to briefly set out some of the constituency context in Carshalton and Wallington. The London borough of Sutton is ranked 29th out of the 33 London boroughs for transport infrastructure, and that includes the City of London. Sutton is the only borough in London that does not have access to a London Underground station, a London Overground station or Crossrail, nor it is not on the map for Crossrail 2. According to a report from City Hall, Sutton is the least-funded transport borough in the entire city. As we might expect, given that it is on the geographical fringes of London, Sutton has some of the highest private car ownership and usage rates in the capital. Put bluntly, Carshalton and Wallington residents rely heavily on cars for their work and personal life, and any policy that impacts on road transportation impacts on my constituency and constituents. As we work towards achieving our net zero ambitions, we must ensure that we strike the right balance for our constituents in order to create truly sustainable alternatives to high-emission modes of transport.

Smart road pricing has become an area of interest in discussions around net zero, although at City Hall discussions have predominantly focused on its potential for TfL finances. The main sources of revenue that fund roads and other Government spending are vehicle excise duty and fuel duty, which are predicted to decline due to decarbonisation, essentially the replacement of the internal combustion with electric vehicles. That revenue represents about 1.5% of UK GDP, and zero-emission transport has the potential to wipe out that funding. I appreciate that that presents a dilemma. How do we decarbonise transportation while continuing to raise money and invest in roads and other public spending commitments?

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16:37 Sarah Olney (Liberal Democrat)

Despite my reservations about the arbitrary boundary divisions of the ULEZ, I firmly believe that action needs to be taken to dissuade car usage. I am strong advocate for the implementation of a simpler, fairer and more sustainable road pricing solution. London is extremely congested, our air quality is poor, and current levels of car usage cannot be maintained if we are to achieve our net zero goals. A report published by the Greater London Authority earlier this year found that car traffic must reduce by at least 27% across the capital, in order to achieve net zero by 2030.

There is a cross-party consensus that some kind of road pricing scheme that charges motorists on a per-mile basis would be beneficial, especially in London. It now seems inevitable that such a scheme will be implemented in due course. Current taxes on fuel and vehicle ownership will raise nearly £37 billion this year, but those revenues will dwindle as fossil fuels are replaced by zero-emission alternatives. The need for change is pressing if the Government are to retain current levels of tax revenue while also reducing toxic air pollution and cutting congestion.

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16:54 Gavin Newlands (Paisley and Renfrewshire North) (SNP)

Net zero and reducing carbon emissions are obviously policies that go far beyond transport. They straddle all aspects of our society. Reducing car usage, improving public transport and developing active travel as a real alternative to private transport will have a huge impact on us all and on how we live our lives. Getting people out of cars is intrinsically linked to improvements in public transport, which, in turn, helps to support our town and city centres; again, in turn, that helps to develop local economies and provide better employment in our communities.

With private cars accounting for around 40% of transport-related emissions, bringing down levels of car usage is a key strand in the Scottish Government’s drive towards a net zero society. Their target—which, I admit, is hugely ambitious—is to reduce overall car kilometres by 20% by the end of this decade. There is no doubt that it is a tough target, but it will result in huge gains in carbon reduction if it can be met.

Sales of electric vehicles are at record levels, despite—I would say—the UK Government’s policy at times. While we have some way to go to match the astonishing progress in countries such as Norway, the trend is clear: EVs are replacing internal combustion engines and, by 2032, every car sold will have to be zero-emission. As that switch happens, the revenues from fuel duties will drop at an ever-increasing pace; as overall emissions from private vehicles drop, so too will revenue from vehicle excise duty based on CO 2 emissions without further reform. The Transport Committee heard evidence that, without action, taxation revenues from motoring will drop to zero by 2040 if UK targets for net zero are met. Clearly, that is neither sustainable nor healthy for road users or our wider economy.

The enhanced incentivisation of the extra grants for home chargers, a scheme whose scope the UK is inexplicably slashing in April, and interest-free loans, along with significant investment in much more comprehensive electric vehicle charging infrastructure in Scotland, compared with most of England, serve to highlight the differences in policy and, more importantly, the urgency with which it is delivered. Without the taxation powers to tie together the changes in duty revenue, however, along with the wider policy objectives of the move to net zero, the Scottish Government are fighting with one hand tied behind their back. Yet still, over the past 10 or 20 years, they have outperformed the UK Government on all those metrics.

Transferring full control over vehicle and motoring taxation to the devolved Administrations will allow policy to reflect the different pace at which things are moving. On nearly all indices, Scotland is outstripping the rest of the UK in the transition to net zero, and yet the fiscal and financial framework in which the Scottish Government have to operate is stuck in the last century. It takes little to no account of the different priorities of the respective Governments.

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17:02 Tan Dhesi (Labour)

I congratulate the hon. Member for Carshalton and Wallington (Elliot Colburn) on securing this important debate. It comes at an extremely important time, following the COP26 conference and a renewal of global efforts to reduce our reliance on the use of fossil fuels. I also take this opportunity to thank the much respected Transport Committee for its work exploring the issue and its recommendations. Some hon. Members have concentrated their remarks on London—rightly so, as they are fighting on behalf of their constituents. However, the problem is a much wider national one, and the solution required must also be national.

In reality, across the length and breadth of our country and particularly in the north-west, many are counting the cost of broken promises. A letter sent to local transport authority directors by the Department for Transport on 11 January made clear that the budget for the transformation of buses—a pot from which local regions can bid for funds—has now shrunk from £3 billion to just £1.2 billion for the next three years. Towns and cities across the country have put forward an ambitious blueprint to use buses and rail to connect people to jobs, families and opportunity, and to tackle the climate crisis in the process. They have plans, despite the challenges, to completely overhaul and reregulate the bus network as part of the bus service improvement plan.

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17:10 The Parliamentary Under-Secretary of State for Transport (Trudy Harrison)

Last Friday, the Mayor of London confirmed that he has asked TfL to consult on expanding the existing ultra low emission zone London-wide, aiming to move London towards a greener future and net zero carbon emissions by 2030. TfL and the Mayor will need to progress that through public consultation, and I heard what my hon. Friend the Member for Carshalton and Wallington said about his disappointment in those consultations seemingly not taking notice of his constituents. I very much hope that they will be listened to.

I conclude by thanking hon. Friends present, and in particular my hon. Friend the Member for Carshalton and Wallington for bringing forward the debate. This is a complex matter, and we do not have answers to the questions at the moment, but I appreciate the willingness of Members present to think about the future of taxation and how the transition from a fossil fuel transport system to a decarbonised economy will work in practice. We are all interested in understanding what new technology can offer to improve traffic management and reduce the impact of road use on the places in which people live and the environment that they love; however, technological capability is certainly not the whole picture, and any proposal for road pricing needs to help people to live their lives and run their businesses well.

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