Industry News from Yes Insurance

Plans have progressed further than ever before in the scheme designed to tax motorists depending on how often and on which roads they drive.

A government commissioned report has now stated that it is the only way to tackle Britain's congestion problems as building more roads, a method preferred by the Conservatives under Margaret Thatcher, will not solve the problems.

The report has also suggested that the money made from the system could be used to improve the public transport network as well as having a knock-on effect on the price of petrol and car insurance.

Pay-as-you-drive has been criticised by certain sectors of the motoring industry, with an RAC survey showing that 33 per cent of Brits would drive to a different town to shop if it meant avoiding a £5 congestion charge.

Only 27 per cent said they would travel by alternative means, with a further 21 per cent stating they wouldn't make the shopping trip at all.

Some critics also believe that by merely pricing the most used carriageways, like the M25 and the M6 for example, drivers will simply navigate their way round them, clogging up the surrounding A-roads in the process.

Paul Smith, founder of the Safe Speed road safety campaign has gone as far as to suggest that the government's claims of gridlocked cities are a myth designed to create more revenue.

"Their threats of 'gridlock' are false. There is no long-term gridlock anywhere in the world and there never will be. People will avoid travel long before they sit in gridlock. In this way congestion self-limits traffic long before gridlock," he said.