Dear Mr Burkinshaw
I thought I should just enlighten you a little about
tax. I am a senior tax adviser and have been for three decades, so I
should know.
Firstly, there is only one “hypothecated” tax in the UK –
that is to say, a tax whose revenues are dedicated to a specific
expenditure. That is the BBC TV Licence Fee. Not even National
Insurance Contributions are actually hypothecated. Some people imagine
that they go to make a “National Insurance Fund”, but that has not been the
case for decades. “Road Tax” was abolished by Winston Churchill in 1937,
mainly because he could predict that it would lead motorists to gain a false
sense of entitlement to roads which were built before the car was even
invented. (In fact, roads which were good enough to promote the rise of
the motor car originate from the lobbying of cycling groups in the late 19th
century, as Carlton Reid’s new book “Roads were not built for cars” explains).
All other expenditures are pooled, and are met from a
general fund of all taxes. So, when I pay income tax (and a lot of it
too), I pay for roads as well as police, defence, health service, schools
etc. When I pay national insurance contributions I am actually paying
another form of tax. When I pay VAT on goods and services ditto.
Same for insurance premium tax, stamp duty etc.
As a homeowner, I pay council tax. A chunk of that
goes to pay for road building and maintenance. Then of course there is
the Police Authority precept, to pay for the local police force one of whose
roles is to patrol our roads and deal with accidents etc as well as speeding
and dangerous driving. And cyclists running red lights, which I admit
does – just occasionally – happen.
Oh, and before I forget, I pay motoring taxes, because –
like about 85% of all cyclists – I also own and run a car. Two,
actually. They cost me £405 in vehicle excise duty (a pollution-based
tax) this year, plus about £50 in insurance premium tax on the motor policies,
and of course fuel duty and the VAT on fuel.
Secondly, motoring taxes do not fully defray the cost of
roads. Motoring organisations would have you believe that motoring taxes
massively overreach expenditure on roads. If you only take account of new
road building that is true, but what about maintenance and repair? What
about policing? Ambulance and fire services attending road accidents?
Hospital costs for road users injured in accidents? Costs
associated with road deaths, including loss of economic capacity? General
health costs directly associated with traffic, such as asthma, bronchitis and
conditions exacerbated by pollutants, and indirectly, such as diabetes and
heart disease due to lack of exercise? These “externalities” together
with direct road building/maintenance costs add up to about €1500 per person
per year, while motoring taxes work out at about €750 per year, according to
new European Commission research (which I expect you don’t recognise, because
it is European).
I do hope you find this information useful,
Kind regards
Exactly my thoughts. I've read about Mr Burkinshaw's rant this morning in Cambridge news, although I agree that there needs to be something done about reckless cycling, the argument about "cyclist not paying for roads" makes him look a bit silly... Good post!
ReplyDeleteLove that the moron has alienated so many people living in his constituency - what a silly sausage
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