A thinktank is urging the UK to introduce taxes on self-driving cars immediately to counteract potential increases in congestion and threats to jobs. This recommendation follows the launch of the first robotaxis on London's streets this month.
The Centre for British Progress, a non-partisan thinktank, warns that widespread adoption of autonomous vehicles (AVs) could put hundreds of thousands of private hire jobs at risk. The report also suggests that individual AV ownership might increase car usage, potentially leading to more congestion and reduced public transport use.
Government projections indicate that up to 40% of cars sold could have self-driving capabilities by the middle of the next decade. The thinktank calculates that an AV charge, set to match the social cost of congestion at approximately 88p per mile, could generate £47bn per year by 2050.
Wayve, a British tech firm involved in autonomous cars, has stated that a sector-specific tax at this early stage would "penalise the UK’s most promising innovators." However, the GMB union, representing taxi and private hire drivers, believes an AV tax would not be sufficient, calling for a plan to reskill and redeploy drivers.