Self-driving cars should be taxed to offset job losses, thinktank urges
Summary
A UK thinktank suggests taxing self-driving cars now to reduce traffic and offset job losses in taxi and private hire sectors. They warn that without early taxes, congestion will rise and fuel duty revenue will drop as more electric and autonomous vehicles appear.Key Facts
- The first self-driving robotaxis started operating in London this month.
- Up to 40% of cars sold in the UK may have self-driving features by around 2035.
- Hundreds of thousands of taxi and private hire jobs in England risk disappearing due to autonomous vehicles (AVs).
- Increased use of self-driving cars may raise traffic congestion and reduce use of public transport.
- Fuel duty currently raises about £27 billion a year but may vanish as electric vehicles replace petrol cars.
- The thinktank recommends a tax of about 88p per mile on AVs by 2050, which could bring in £47 billion annually.
- UK tech firm Wayve and unions representing drivers disagree with the tax, citing harm to innovation and insufficient support for affected workers.
- Robotaxi services are also expanding internationally, including in the US, China, UAE, and Croatia.
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