Petrol and diesel owners are being slapped with five different “stealth taxes” to stay on the road and use their vehicles, according to a leading expert. Jack Cousens, the AA’s head of roads policy, stressed road users were being forced to pay a range of “environmental taxes” to get behind the wheel.
According to Mr Cousens, these fees are usually in place due to some form of “CO2 justification,” with low-income households with older vehicles in the firing line. He warned that many road users were even being “discriminated against,” with some families unable to purchase newer and cleaner machines. Parking permit costs, new workplace levies, and fees for stopping in town centres were all among the “stealth taxes” being applied.
He said: “Environmental taxes now being levied by councils, including those that can reasonably be labelled as stealth taxes, include CO2-related residents parking permits, diesel-related residents parking permits, diesel-related public parking charges, workplace parking levies, city or town parking costs where the council has stated a CO2 justification for high fees.
“These types of charges potentially discriminate against low-income households who may own older cars but don’t use them much.”
The AA’s remarks come after new figures from the Office for National Statistics (ONS), revealed that fuel duty makes up 45% of environmental tax in the UK.
In total, environmental taxes are believed to have raised £54.3 billion in the UK in 2024, down slightly by 0.5% compared to the £54.6 billion in 2023.
The statistics show fuel duty rates, paid by all road users at the petrol pumps, generated almost £25million for the Treasury.
However, the AA called out the data for not taking into account any other fees regularly paid by road users.
Mr Cousens added: “Drivers will be staggered by how much the burden of fuel duty contributes to environmental tax in the UK. Most will accept that fossil fuel car use comes with some level of tax penalty, but the share of the tax-take will be a shock.
“The AA also agrees with the ‘polluter pays’ principle of environmental tax, providing it is proportionate. It also recognises that fuel duty has been frozen since March 2011.
“However, the ONS statistics cover little if any of the swathe of environmental taxes being levied by councils against motorists.”