TAX CONSUMPTION:

When you don't have prices, you get queues. This happens in healthcare in this country and it happens on our roads. Prices help regulate demand and call forth more supply. They also provide the funds for capital investment.

The subject of road pricing was first investigated for government by the Smeed Commission, which published its report in 1964. It is one of the best government reports ever produced and those who work in the field today would argue that there is little that could be added to its analysis. Since then, think tanks such as the Institute of Economic Affairs, have called for the implementation of systems of electronic road pricing whereby motorists would pay as they use the roads. There is unanimity on the subject pretty much across the spectrum of thinkers outside the political class.

The latest call comes in a report this week from the Tony Blair Institute for Global Change, which says road pricing would be a way to both reduce congestion and replace the tens of billions of fuel duty revenue the Government will lose once the ban on new petrol and diesel cars kicks in.

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