RAC proposes new road payment scheme that could save motorists money

The RAC Foundation has suggested that Britain's roads become privatised in a bid to cut the scaling cost of driving for motorists.

According to The Guardian, The RAC claims that the introduction of a pay-as-you-drive scheme in place of fuel duty and road tax would reduce the £47 billion tax bill for drivers. The think tank's recommendations come just after an Ipsos MORI poll found that 46% of the population backs a charging system.

According to a report by The RAC, an Ipsos MORI report for The RAC Foundation found that 58% of drivers said a pay-as-you-go per-mile system across all roads would make them reconsider how much they drive.

This proposals could make it more expensive for those who make regular long distance journeys. These drivers could be looking for used car buyers to sell their cars to as they try to cushion the rising costs by investing in more economical models.

The RAC Foundation warned that traffic is expected to increase by 33% by 2025, while public spending on roads is slashed because of the public sector budget squeeze, according to Sky News.

The idea is that the privatised roads would pay for its own upkeep, with some of the pay-as-you-drive money earmarked for maintenance.

"Motorists are resentful of the relentless rise in the cost of fuel and feel short-changed by the amount spent on the road network," explained Stephen Glaister, director of The RAC Foundation. "These proposals address such issues. People are very familiar with the principle of 'pay as you go'.

However the government has no plans to introduce this system, according to Sky News.