Tax self-driving cars to fund job losses, report urges
A thinktank recommends an 88p per mile charge to offset impacts on 121,000 London drivers.
News London evidence indexOpen analysis ▾
Includes named sources, report document, and sourced figures, but lacks multiple independent outlets.
Higher is stronger
Provides clear impact explanation, quotes affected parties, specific data, and coherent narrative.
Higher is stronger
Measured language with some strong wording but no clickbait or exaggerated claims.
Lower is better
A UK thinktank has urged the introduction of taxes on self-driving cars to mitigate job losses and rising congestion. The Centre for British Progress (CBP) released a report stating that widespread adoption of autonomous vehicles (AVs) could put hundreds of thousands of private hire jobs at risk. The CBP suggests that an 88 pence per mile charge on these vehicles, implemented now, could generate significant revenue and ease the transition.
Projected Job Losses and Revenue
TfL unveils 70 measures for climate resilience
Transport for London's updated Corporate Environment Plan includes adaptation and emission reduction strategies.
The report estimates that up to 40% of cars sold could have self-driving capabilities by the mid-2030s. In England, there are 417,000 taxi and private-hire drivers, with 121,000 of these based in London. The CBP's analysis indicates that these roles could become obsolete due to AVs. The thinktank calculates that by 2050, an AV charge set at 88p per mile, matching the social cost of congestion, could raise £47 billion annually. This proposed revenue stream could help replace the dwindling fuel duty, which is projected to disappear with the shift to electric vehicles.
David Lawrence, a report author, stated that introducing taxes now, before AVs become widespread, is advantageous. He drew a parallel with fuel duty, introduced in 1909 before mass car ownership, suggesting it is better to establish such measures early to avoid later political challenges. Lawrence also noted that even if tax revenue peaks in 2050, it can influence current bond yields and provide immediate fiscal headroom for the government.
Industry and Union Responses
Gallows Corner flyover closed overnight, weekend junction shutdown announced
Transport for London sets an overnight closure on 17 September and a full weekend shutdown from 18 to 21 September, with diversions signed for all directions.
The Department for Transport forecasts a 24% increase in road mileage by 2050 due to highly automated driving, which is expected to affect congestion and road speeds. However, Wayve, a British firm developing autonomous cars, has expressed concern. Sarah Gates, VP global affairs and assurance at Wayve, warned that a sector-specific tax at this early stage would "penalise the UK’s most promising innovators" and undermine the government's growth agenda.
The GMB union, representing taxi and private hire drivers, believes an AV charge would not be sufficient. Simon Rush, president of the GMB London region drivers branch, stated that driverless cars threaten livelihoods and that the union has sought unanswered plans for reskilling and redeploying drivers from the government, Transport for London, and operators. Rush added that while an AV charge could help mitigate economic disruption, more comprehensive measures are needed.
What Happens Next
The report urges ministers to act promptly to mitigate the effects of AV adoption on drivers. The CBP's stance is that implementing taxes now is more feasible before a substantial constituency of AV owners emerges, which would make taxing them more difficult.
Questions this report answers
+What is the main recommendation of the Centre for British Progress report?
The Centre for British Progress thinktank recommends introducing taxes on self-driving cars in the UK. This is to offset potential job losses for drivers and increased congestion caused by autonomous vehicles, and to create a new revenue stream.
+How much money could taxing self-driving cars generate?
The report calculates that by 2050, an autonomous vehicle charge of 88 pence per mile could raise £47 billion annually. This is intended to compensate for the loss of fuel duty revenue and mitigate the economic impact of widespread AV adoption.
+How many London drivers could be affected by self-driving cars?
The report states there are 121,000 taxi and private-hire drivers in London. It warns that widespread adoption of self-driving vehicles will eventually make much of this work obsolete, putting these livelihoods at risk.
+What is the response from the self-driving car industry?
Wayve, a British tech firm pioneering autonomous cars, has stated that a sector-specific tax at this early stage would "penalise the UK’s most promising innovators." They argue it would send the wrong signal and hinder the UK's competitive advantage in the global AV market.
News London Desk
This article was written at the News London news desk from the reporting of the outlets listed below it. Drafting is done by a language model under human editorial supervision — there is no reporter behind this byline, and we would rather say so than invent one.
How stories are produced and scoredWho runs News LondonCorrections
The London Ledger
A considered capital-wide edit delivered each morning.
More Coverage in Transport & TfL
TfL unveils 70 measures for climate resilience
Gallows Corner flyover closed overnight, weekend junction shutdown announced
