Car tax 2020: Experts reveal what your road tax charges actually pay for

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Road tax revenue is controlled centrally (Image: Getty)

Car tax 2020: Experts reveal what your road tax charges actually pay for

The Conservatives have proposed extra pothole funding (Image: Getty)

Where do my road tax costs go? 

According to All Car Leasing, the total road tax revenue goes straight to the chancellor of the exchequer who then allocates money equally between councils.

Every area will receive a different proportion of the finance depending on factors such as population.

Local areas can then decide how much of the budget they spend on road infrastructure meaning not all road tax charges could be spent on the network.

Rural areas are unlikely to receive as much funding as big communities such as Manchester so roads in these areas could suffer.

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Why is road tax not fixing potholes? 

UK drivers complain about a pothole once every 45 seconds with data revealing 700,000 complaints were made about damaged roads in 2019.

Social media users are quick to comment on council pages about why potholes are not repaired with anger being raised after two UK storms left communities roads destroyed.

Councils can also be responsible for damage caused by their areas potholes which can run into bills worth hundreds of thousands of pounds.

However, local councils decide where the money goes so may opt to spend the revenue elsewhere.

How much is spent on the roads now? 

Data from the RAC Foundation shows almost 30 percent of total road taxation generated from fuel duty and VED was spent on the roads between 2017 and 2018.

This is an increase on the 22.4 percent seen in 2012 to 2013 but still lower than the all-time high of 41 percent in 1990.

According to the AA, English councils 2018/19 budget submissions revealed a decrease in overall road maintenance spending.

The recovery group found £3.7million had been cut from gritting services while £15.6million was shaved off clearing overgrown trees from blocking road signs.

There could be higher spending on road infrastructure in March’s budget with Boris Johnson announcing a pothole fund as part of his manifesto.

The Conservatives previously said the £2billion pothole fund would aim to improve the quality of roads in the biggest ever pothole filling programme seen.

Why do different cars pay various levels of car tax? 

Road tax costs are calculated by the total amount of emissions emitted from your vehicle with gas-guzzling machines liable for heavier charges.

Those that drive fully-electric vehicles are exempt from paying any road tax as long as they register with the DVLA.

However, polluting diesel vehicles usually pay the most expensive costs as these emit the highest level of pollution to the atmosphere.

Buses are given a heavy discount on their car tax costs because they are providing a public service and are more economical.


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