AA: Use fuel duty windfall to fill potholes
February 1st 2010 The AA has claimed diverting nearly 2p per litre from the fuel tax windfall generated by soaring pump prices would fund filling the UK's potholes in 100 days.
With the average price of petrol riding above 112p per litre, the additional cost compared to a more typical £1 a litre for this time of year is generating a VAT windfall of 1.8p a litre. In petrol sales alone, the UK consumes 61.38 million litres a day, or £1.1 million in extra VAT revenue each day.
The estimated two million potholes, costing £70 each to repair, leave a £140 million hole in council budgets that could be filled in three to four months, said the AA.
Association president Edmund King added: "If nearly 2p a litre from fuel tax was diverted into a pothole fund, for once, UK drivers would be seeing their fuel tax disappearing into a black hole they can understand.”
The AA is building up a picture of potholes nationwide via drivers' reports on AA Pothole Watch which it said it will share with the highway authorities.
Last February's heavy snow pushed up insurance claims for pothole damage by more than 250%. The association predicted councils could face a deluge of claims from road users and the risk of paying out more in compensation than on road repairs themselves.
Geoff Dossetter, chairman, OG Transport Media congratulated the AA on its initiative but feared it would have little success.
“There is certainly a moral argument for dedicating 2p per litre to deal with the potholes crisis,” he said.
“Sadly, I think Edmund's suggestion has zero chance of scoring. In recent years it has been suggested that funds from parking charges, congestion schemes, speeding fines etc could be used to improve transport and roads facilities but there is little evidence to suggest this is actually happening.” More articles from Handling & Storage Solutions: | 
