back to article London mayor: Self-driving cars? Not without jacked-up taxes, you don't!

London mayor Sadiq Khan has come out against driverless electric cars, telling Parliament that adoption of the vehicles by Londoners could harm government tax revenues, reduce the number of cyclists – and leave questions over who would build the roads. “A move towards new technologies like electric vehicles is likely to reduce …

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  1. Gordan

    What about the downsides?

    "London mayor Sadiq Khan has come out against driverless electric cars, telling Parliament that adoption of the vehicles by Londoners could harm government tax revenues, reduce the number of cyclists"

    [...]

    "The transport authority, whose chairman is Khan, expressed concern that driverless car technology could encourage Londoners to give up forcing themselves onto overcrowded trains or slow-moving buses packed onto the capital’s ever-busier roads"

    Are there any _negative_ effects?

    1. AndyS

      Re: What about the downsides?

      I know you're being facetious, but I think the article is slightly harsh on Khan here. He doesn't appear to be opposing the new tech, but recognising that it's likely to lead to a loss of revenue, largely because it is better. Hence the statement:

      >A move towards new technologies like electric vehicles is likely to reduce taxation income for the government which could impact on the funding available for highway improvements

      This doesn't say "new tech is bad", but the opposite. New tech is good, but we need to make sure we don't lose tax revenue.

      Seems perfectly reasonable.

      1. jmch Silver badge

        Re: What about the downsides?

        "This doesn't say "new tech is bad", but the opposite. New tech is good, but we need to make sure we don't lose tax revenue."

        Yes. And more pertinently, not taxes for taxes' sake but specifically to fund road improvements and maintenance

        1. Anonymous Coward
          Anonymous Coward

          Re: What about the downsides?

          @jmch "Yes. And more pertinently, not taxes for taxes' sake but specifically to fund road improvements and maintenance"

          The money for services/infra has to come from somewhere, so less raised on petrol duty/rfl means more needs to be raised elsewhere. If you want to pay less tax I hear Eritrea has very a very low tax regime.

        2. nijam Silver badge

          Re: What about the downsides?

          > specifically to fund road improvements and maintenance

          Haha. Hahahaha. Hahahahahhahahahaha.

          1. Anonymous Coward
            Anonymous Coward

            Re: What about the downsides?

            But the children! Thnk of the children!

            Business need to more with less. Government wants to do less with more.

        3. Alan Brown Silver badge

          Re: What about the downsides?

          The interesting part is that 1 bus carrying 40 people does about 5000 times as much roadbed damage as 40 cars carrying 1 person and that damage doesn't decrease much if the bus is empty.

          Driverless cars are more likely to smooth traffic flow too, because they don't do stupid things like jumping red lights or fouling intersections.

          The really interesting part is that overall traffic levels (and numbers of parked cars) are set to radically decrease (driverless cars means cheaper taxi services, which means more people not bothering to buy a car, or leaving it at home when going into the city) - which is a real cause for concern to areas like Westminster which have become totally dependent on parking income.

          Sadiq is seeing the things as a threat and not an opportunity. They come with the Knowledge built-in and updated as to the best route every second of every day.

        4. Doctor Syntax Silver badge

          Re: What about the downsides?

          "not taxes for taxes' sake but specifically to fund road improvements and maintenance"

          We've been here before. There used to be the Road Fund. Then it was morphed into the VED, sucked into the Treasury and the roads see less and less of it. In part new roads and bridges which the Road Fund should have financed have instead been built on a toll basis, taking us back to the late C17th.

          Impose a new tax to fund road improvements and you'll see (a) even less Treasury funding for roads and (b) the Treasury getting its hands on the new tax.

      2. This post has been deleted by its author

      3. Prst. V.Jeltz Silver badge

        Re: What about the downsides?

        "A move towards new technologies like electric vehicles is likely to reduce taxation income for the government which could impact on the funding available for highway improvements"

        Well thats what happens when you take the road tax, which is for building roads , and do something else with it , like turn it into a co2 tax

        1. Alan Brown Silver badge

          Re: What about the downsides?

          "Road tax" (VED) - nets about 5-7 billion per year

          Fuel duties and taxes net about 70 billion per year

          Only about 5-7 billion is spent on roads each year and the vast majority of damage is caused by vehicles in excess of 7 tons (damage goes up with the 5th power of axle weight and the square of speed)

          A fleet of self-driving 6-8 seat minibuses would be _far_ better for the roads than any kind of double decker bus and the interesting thing is that they'd probably give better speeds for passengers.

          1. hititzombisi

            Re: What about the downsides?

            14-seater minibuses are ubiquitous elsewhere in the world and work significantly better than large double-buses. More frequent and quicker service (reduced loading/unloading times at the stops).

            On the other hand, if you are to transport a very large amount of people to similar destinations, large buses have their point.

          2. Nonymous Crowd Nerd

            Re: What about the downsides?

            Very interesting @Alan Brown...

            "5-7 billion is spent on roads each year"

            Is that the national figure - including maintenance and all three repeat announcements of road "improvements". Do you know the source(s) for your figures?

        2. J.G.Harston Silver badge

          Re: What about the downsides?

          There is no such thing as road tax, and there is no such thing as a hypothecated tax that goes directly into road building. All, but ALL UK taxes go into a single general tax pot; all, but ALL spending comes out of that single general tax pot.

      4. rh587

        Re: What about the downsides?

        I know you're being facetious, but I think the article is slightly harsh on Khan here. He doesn't appear to be opposing the new tech, but recognising that it's likely to lead to a loss of revenue, largely because it is better.

        ...

        Seems perfectly reasonable.

        Sure, but he seems to be presenting it a bit of an "OMG crisis" manner.

        It's not rocket science. At one stage VED was based on engine size, at others CO2 emissions. Sooner or later it will just get changed again based on weight or something (i.e. if you get to the point where most cars are electric, you would either flat-rate them or separate on weight as a proxy for load/road wear).

        Same for the Congestion Zone. Charges have varied for different classes of vehicle. When a shift in road usage becomes a problem, you change the tariff.

        Crying "woe is us, who will build the roads?" is more than a tad melodramatic.

        1. hititzombisi

          Re: What about the downsides?

          Power rating of a car is a sensible starting point for leccy cars.

      5. alexnode

        Re: What about the downsides?

        We need to introduce electric vehicles as soon as possible and we need to install charging points all over London. I would have assumed that with such horrible air quality, we should have paid and subsidised EVs ... not tax it ! If you are in the country side you can have diesel and all but in Big cities the air and noise are horrible.

      6. Bent Metal
        Alert

        Re: What about the downsides?

        “A move towards new technologies like electric vehicles is likely to reduce taxation income for the government which could impact on the funding available for highway improvements,” said Kahn

        and

        TfL insisted that “a modal shift from car use to walking, cycling and public transport use is the only way to maintain and improve our streets"

        Yet surely, if successful, such a modal shift in behaviour will also have a dramatic impact on congestion charge & vehicle tax income - thus impacting funding available for highway improvements.

        Unless of course the endgame is to tax cyclists and pedestrians.

        1. Gordan
          Thumb Up

          Re: What about the downsides?

          "Unless of course the endgame is to tax cyclists"

          That part sounds really good.

    2. Mage Silver badge
      Boffin

      Re: What about the downsides?

      The "carbon emissions" are moved, not saved and may even increase due to grid losses, charging losses and battery losses. UNLESS you have most electricity sourced from non-fossil sources. Electric cars in UK really need Nuclear or hybrid Nuclear /Fusion power.

      Autonomous electric cars might increase on road congestion if they are single person carrying "taxis" as the journey distance can be nearly doubled, worst case.

      1. Alan Brown Silver badge

        Re: What about the downsides?

        "The "carbon emissions" are moved, not saved and may even increase due to grid losses, charging losses and battery losses"

        Tank to wheel efficiency of most cars and busses is in the region of about 5% - less than 1% in stop start traffic.

        Tank(furnace) to wheel efficiency of electric vehicles is around 35% and stop/start traffic makes little difference if they use regenerative braking.

        The interesting part that goes with that is that the electricity cost of refining the fuel to run a car is about the same as charging an electric car.

        Carbon emissions are a problem. Look up "Leptav Sea Methane Emissions" and then "Storegga slide" and then "Anoxic Oceanic Event". We're going to have to stop burning carbon sooner rather than later and not just for electricity (which only accounts for about 35% of carbon emissions).

        This brings in some interesting problems:

        1: To replace the other 65% of emissions (with electricity), you're going to need to increase electrical generation capacity by a factor of _AT LEAST_ 6, probably 8. Electric vehicle fleets alone will double the requirement at minimum, and replacing gas/oil heating systems will be as much again - which you CAN'T timeshift by much even with storage heating. Industrial processes will need considerably more electricity than a 1:1 reduction in carbon you might naively think, because a lot of it is making high quality heat.

        2: Assuming perfect solar panels on every rooftop and windmills everywhere, renewables can _just match_ current electrical generation capacity (forget drax, it and its kin are greenwash which are destroying old growth forest at a prodigious rate)

        3: Hydro is tapped out, tidal won't make enough different to matter. Electricity can only be economically transported about 1000-1200 miles before line losses and construction costs kill the feasibility of the project - less than 200 miles underwater (and underwater links top out around 2GW).

        3a: That means "paving the desert" and using electrricity from there is a non-starter - for starters the deserts belong to african countries (colonialism writ large) and secondly the transmission lines _alone_ would be the largest engineering project in the history of humanity, with 75+% losses into Europe (No, superconducting cables are not practical. They need to be cooled and trenched, which is ok for 20 miles but not thousands)

        4: If the developed world stopped using carbon tomorrow, the developing world has the capacity to make up the emissions and then some, whilst bootstrapping themselves to developed status.

        The only logical path is nuclear and lots of it - to the tune of about 60 Hinkley points in the UK alone and deployment fo the same across the developing world.

        By the time those reach midlife to end-of-life we (or rather the chinese, as they're the ones doing the lion's share of R&D) should have Molten Salt Reactors sorted and commercially viable. These are at least 100 times safer than current nuclear (which is already 300,000 times safer than coal) and break down conventional "nuclear waste"(*) - both the 99% viable stuff that comes out of a conventional reactor and the 90+% "depleted" uranium that's currently discarded after enrichment or turned into H-bomb casings/bullets, - leaving 1% waste output which is safe to handle in 100-300 years (5-10 for some byproducts, which are saleable commodities such as helium and other noble gasses. Anything "hot" or toxic goes back into the reactor melt pool for further breakdown)

        (*) A conventional 800-1000MW reactor over a 60 year lifespan produces enough high level waste to fill a large swimming pool and is safe to handle for reprocessing in about 300 years (less if you wear gloves)

        Ideally molten salt reactors will be ready long before conventional plants reach end of life, but we can't afford to sit around another 30 years waiting for them to be commercially viable and then 20 more to build the things. Carbon-emitting power plants need replacing now and we don't _have_ 50 years to sit around with our thumbs up our arses.

        Yes, I'm aware that nuclear technology has drawbacks, but even with a worst case chernoybl event every decade(**) that'd be 50-60,000 deaths vs 500million or so if climate change gets bad and 2-3 billion if the atmosphere drops to 15-16% oxygen or less in the case of an Anoxic Event.

        (**) The world's coal plants emit enough radium alone to equal the radiation output of several chernobyls each year. Making a fuss about nukes when that's going on is on par with panicking about plane crashes but not bothering to wear a seat belt when you're in the car.

        1. Anonymous Coward
          Anonymous Coward

          Re: What about the downsides?

          "Electric vehicle fleets alone will double the requirement at minimum"

          That sounds like made up statistics to me. Do you have a reliable source for that?

      2. Anonymous Coward
        Anonymous Coward

        Re: What about the downsides?

        The "carbon emissions" are moved, not saved and may even increase due to grid losses, charging losses and battery losses. UNLESS you have most electricity sourced from non-fossil sources.

        Which we do. It was in the news earlier this year that for the first time, at one point more than 50% of our electricity came from renewables....and that's only going to increase....

        1. Anonymous Coward
          Anonymous Coward

          Re: What about the downsides?

          When you fudge the numbers or just plain lie about uantities, you can claim anything.

      3. hititzombisi

        Re: What about the downsides?

        IC engines are significantly worse in efficiency compared to thermal power stations, even after you account for grid losses etc.

      4. davyclam

        Re: What about the downsides?

        There are three types of fuel available for road vehicles; Petrol Diesel and Coal.

        1. Roger Mew

          Re: What about the downsides?

          What about trolley buses. They are cheap to make, easy to drive and make no pollution, asuming they are using wind power!

    3. Anonymous Coward
      Anonymous Coward

      Re: What about the downsides?

      "A move towards new technologies like electric vehicles is likely to reduce taxation income for the government which could impact on the funding available for highway improvements,"

      Surely the purpose of the current lower tax is just to encourage adoption of what are relatively expensive vehicles. Once a significant proportion of the population does, and indeed once they are the main choice on the market then presumably the discount will disappear. A very short sighted view to discourage clean vehicles on the basis of future revenue!

      It does beg the question what will all the Uber / Cab drivers do once we have "Johnny Cabs"?

      1. Anonymous Coward
        Anonymous Coward

        Re: What about the downsides?

        "It does beg the question what will all the Uber / Cab drivers do once we have "Johnny Cabs"?"

        From my extensive experiences with Uber I would guess for most it would be return to their country of origin?

    4. tfewster

      Re: What about the downsides?

      A move towards public transport and bicycles is likely to reduce taxation income for the government too. Better recognise that times are changing and invent a new tax. How about an Air tax? Where everyone pays and some of the money goes towards improving air quality?

      </sarc>

    5. macjules

      Re: What about the downsides?

      London mayor Sadiq Khan and official spokesperson for the London Taxi Drivers Association has come out against driverless electric cars, telling Parliament that adoption of the vehicles by Londoners could harm government tax revenues

      There. FTFY

    6. TheVogon

      Re: What about the downsides?

      This just needs a mass purchase of Bloom Energy Servers strategically placed to power these recharging points. They you would have a completely pollution free solution...

  2. Anonymous Coward
    Anonymous Coward

    They give with one, then take with the other.

    1. Spudley

      They give with one, then take with the other.

      Well yeah. They kinda have to do that if you want them to maintain the level of services they offer.

      Or alternatively, they could, you know, just stop maintaining the roads.

      Nobody likes taxes, but go look at the countries that have low taxes and you'll find countries that also have low levels of public services.

      The current low taxes on EVs are explicitly intended to accelerate adoption of low-pollution vehicles. But don't expect EVs to remain untaxed when they become mainstream.

      1. MrXavia

        " they could, you know, just stop maintaining the roads."

        I thought they already had?

        1. Tigra 07

          RE: MrXavia

          Yeah, like MrXavia has said, if you've been to the Midlands you'll know that ship has sailed.

          They routinely leave potholes so long (5+ years generally) that when they do fix them they have to resurface the entire road.

          1. Anonymous Coward
            Anonymous Coward

            Re: RE: MrXavia

            @Tigra 07 "They routinely leave potholes so long (5+ years generally) that when they do fix them they have to resurface the entire road."

            Report the pot holes, they will be fixed if they meet the threshold to avoid being found guilty when taken to court by someone injured by a pot hole. You problem is differnt authorities have different diameter and depth numbers.

            1. tiggity Silver badge

              Re: RE: MrXavia

              You would need a lot of time on yer hands when a road is nearly all potholes & local councils too corrupt to bother fixing, they don't care if sued, they just close another library to cover the bill

            2. Tigra 07

              Re: RE: MrXavia

              There's a pothole on the main road near Great Bridge ASDA that's at least 3 inches deep and the size of a manhole.

              It's next to the bus stop too and it's been getting bigger for years. Eventually the council may just decide to build a bridge over it instead of filling it in...

              1. Alan Brown Silver badge

                Re: RE: MrXavia

                "Eventually the council may just decide to build a bridge over it instead of filling it in..."

                Report it as a material hazard to cyclists and see how fast they react. Councils don't like paying out £20-60k at a time.

              2. Anonymous Coward
                Anonymous Coward

                Re: RE: MrXavia

                And then they could tax bridge crossings. Sound.

      2. jmch Silver badge

        " alternatively, they could, you know, just stop maintaining the roads"

        One of the problems here is that AFAIK the fuel tax, congestion charge, vehicle licensing fees etc go into the UK general budget, not int a pot reserved for road upgrades and maintenance. So what is spent on roads is far less than what road-related taxes bring in.

      3. Doctor Syntax Silver badge

        "Or alternatively, they could, you know, just stop maintaining the roads."

        If motoring taxes were actually spent on roads we'd have superb roads. Taxes are taken from road users but not spent on roads.

    2. nijam Silver badge

      > They give with one, then take with the other.

      They take with one, then take with the other.

      FTFY

    3. Doctor Syntax Silver badge

      They give with one, then take with the other both.

  3. DavCrav

    Khan being an idiot on this one

    This is a stupid report. "We don't like electric vehicles because we would get less tax under our current system" is a moronic reason to continue supporting fossil fuel burning ICEs.

    1. codejunky Silver badge

      Re: Khan being an idiot on this one

      @ DavCrav

      It really does show where his loyalty lies when his issue is money.

    2. AndyS

      Re: Khan being an idiot on this one

      I don't think that's how it was intended.

      If you read it as "this new tech is great, people will convert to it but that means we will lose revenue, so we need to change our tax systems," isn't that a perfectly reasonable thing for him to say?

      1. Spudley

        Re: Khan being an idiot on this one

        <blockquoteI don't think that's how it was intended.

        If you read it as "this new tech is great, people will convert to it but that means we will lose revenue, so we need to change our tax systems," isn't that a perfectly reasonable thing for him to say?</blockquote>

        Yes, it's a perfectly reasonable thing for him to say.

        However, if that is what he's saying then he's being wilfully ignorant of the fact that the current low road taxes on EVs have always been intended to rise once EVs become mainstream.

        Indeed, these changes are already happening -- the level of road tax is (partially) based on a vehicles' emissions, and the emission thresholds for getting lower tax rates have been going down steadily: cars that used to be taxed as low-emission have been pushed into higher bands and are no longer getting such a good tax rate as they used to.

        The change is gradual, and not easy to notice as long as the headline is zero tax for pure electric vehicles, but that will change too eventually.

      2. ukaudiophile

        Re: Khan being an idiot on this one

        What would actually be more reasonable to say would be 'I will live within my means and use the money I have wisely and intelligently, not just hold my hand out and demand more at gunpoint when I've spent everything inefficiently and recklessly'.

        His tax income is falling, you either get more efficient, or simply stop wasting money on fatuous projects with no ROI, but as a typical socialist he believes that everyone works to pay taxes for his pet projects.

        If he actually cared about the air quality, he'd be spearheading a campaign to reduce the the density of people in offices in London, stopping further development within the M25, & accepting the loss of tax income as acceptable to achieve real reductions in pollution within the M25, but that is clearly not his agenda, his agenda is clearly to prioritise increasing his tax income over everything else. I hope people remember this when the next mayoral election is held.

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