Seven leading business organisations, including the Road Haulage Association (RHA) and Logistics UK, have launched the Road Pricing Coalition to represent commercial road users as the Government considers how to replace declining fuel-duty revenues.

The new coalition brings together organisations representing freight transport, logistics, vehicle rental, construction, removals and other sectors that depend on Britain’s roads.

Its launch comes ahead of the Autumn Budget on 28 October, when the Government is expected to confirm fuel-duty rates.

The coalition is not advocating a particular road-pricing system. Instead, it wants businesses involved from the outset in discussions about future motoring taxation, arguing that poorly designed reforms could increase operating costs and create unnecessary administrative burdens.

Declining fuel-duty revenues drive debate

According to the Office for Budget Responsibility (OBR), fuel duty raised approximately £24.4 billion during 2024/25. However, receipts are forecast to halve during the 2030s and approach zero by 2050/51 as electric vehicles become more widespread.

Fuel duty and Vehicle Excise Duty currently generate more than £33 billion annually for the Treasury.

While revenues are expected to decline, demand for road transport remains substantial. Department for Transport figures show vehicles travelled 342.6 billion miles (approximately 551.3 billion km) on Great Britain’s roads in 2025.

The Government has already outlined plans for Electric Vehicle Excise Duty (eVED), introducing mileage-based charges for electric, hydrogen and plug-in hybrid cars from April 2028.

Under the announced proposals, battery-electric and hydrogen cars would initially pay 3p per mile, with plug-in hybrids charged 1.5p per mile.

HGVs and vans are excluded from the initial scheme, although the OBR estimates the new charge would recover only around a quarter of the longer-term reduction in fuel-duty receipts.

Five principles for future road charging

The Road Pricing Coalition has published its first report, Paying for our Roads: The decline of fuel-duty revenues and the choices ahead.

It identifies five principles that should underpin any future charging system:

  • Early and continuing engagement with businesses.
  • Alignment with economic growth, productivity and decarbonisation objectives.
  • Fair treatment across vehicle types, sectors and regions, including UK and overseas operators.
  • Phased implementation supported by operational testing.
  • Coordinated charging arrangements that avoid overlapping systems and payment requirements.

The coalition argues that these principles would help policymakers understand the practical consequences of reform before introducing new charges.

Haulage sector demands a voice

Richard Smith, Managing Director of the RHA, said: “Road transport is an enabler of the whole economy.”

He warned that changes to road taxation would affect businesses far beyond the haulage industry and said the coalition would provide a stronger collective voice.

Tim Doggett, Chief Executive of the Chemical Business Association and Chair of the coalition, said businesses needed to participate in shaping future policy rather than being consulted after decisions had effectively been made.

Andrew Large, Director General of the British Association of Removers and the coalition’s Vice-Chair, highlighted the challenges facing smaller operators, particularly those unable to reduce journeys or change transport modes.

For hauliers, the debate raises questions about how any future system would account for vehicle weight, mileage, international operations and the different costs of running diesel and zero-emission HGVs.

The coalition says its priority is to establish a practical framework for discussions with government, rather than endorse a particular replacement for fuel duty.

More information: Road Pricing Coalition | Full report (PDF)