The government risks a £30bn financial black hole without a roadmap to net zero

The government risks an annual black hole of more than £30bn in its tax policy if it fails to find a meaningful alternative to fuel duty during the transition to electric vehicles (EVs), the environmental think tank Green Alliance has warned.

It has called on Downing Street to come up with plans to close the revenue gap as EVs enter the mainstream market, such as road tax and CO2 charges.

Green Alliance said: “A net zero tax roadmap should pave the way for government intervention to address this fiscal reality. This is most urgent in the case of fuel duty, which currently brings in £30bn a year and will decline rapidly as the country’s car fleet electrifies.

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