UK think tank proposes tax on self-driving cars

The Centre for British Progress, a UK-based think tank, has proposed a tax on self-driving vehicles to mitigate potential job losses and offset declining fuel duty revenues. The proposal highlights that the rise of autonomous technology could threaten approximately 417,000 taxi and private-hire driving jobs in England, including 121,000 in London.

Beyond employment concerns, the think tank warns that autonomous vehicles could increase road congestion, with forecasts suggesting a 24 per cent rise in road miles by 2050. The proposed charge of approximately 88 pence per mile could generate an estimated £47 billion annually by 2050, providing a new revenue stream as the transition to electric vehicles reduces traditional fuel tax income.

The proposal has met resistance from the technology sector. Wayve, a British autonomous driving company, cautioned that a specific tax could discourage investment and hinder the UK’s competitiveness in the global autonomous vehicle industry. Additionally, transport unions have argued that taxation alone is insufficient, calling instead for comprehensive retraining programs for displaced workers.