Re: Restructure the Market
1. Introduce a fossil fuel car VAT supplement, starting at 2%, ratcheting up by an additional 2 percentage points every year until it hits 20% - ie gradually double the VAT on any vehicle that is in any way powered by petrol or diesel.
That's what triggered the "yellow vest" protests in France, and could well cause haulage strikes in the UK. Certainly, some government is going to have to tackle the road haulage industry at some point, but I think it will need a lot more carrot & less stick than this.
Introduce an electric/AF car VAT discount, starting at 20%, ratcheting down by 2 percentage points every year until it's gone - i.e. remove the VAT for now, gradually reintroducing it.
Still wouldn't encourage me to buy a battery electric car. Do it for plug-in hybrids and I might be interested, but then I'll probably buy one anyway, so it could become another subsidy for people who don't need it.
Those that impose extra wear and tear on the network or consume extra capacity [think heavy and/or XL vehicles] pay even more.
40+ tonne lorries do so much damage to the roads that the wear & tear from cars is insignificant. The labs that do road wear & tear measurement don't even consider light vehicles any more. Structuring car tax based on relative damage done by bigger cars is in the "rearranging deckchairs on the Titanic" category.