just do away with VED and increase the cost of fuel. That way, the more uneconomic vehicles (ie the ones that pollute the most) will pay the most and those of us that have several vehicles will only pay for what we use.Transport companies would be able to claim back the additional costs and not inconvinence them either.
I accept that older vehicles are going to be more polluting than new ones
I know that seems to be the way to go as it keeps costs relative to your own use but a 1 pence rate of duty per litre would cost us an absolute bomb per year - I can't imagine it would be any less.
Whilst a few would gain and some lose, I bet it would result in the vast majority having to cut back a bit in order to continue paying the same as they did the previous year (plus the usual increase) .
Transport companies (trucks/buses etc) would lose out compared with now but a scheme can be devised easily enough to off-set any additional fuel tax against other taxes.
I use about 70,000 litres of diesel per year in my truck. The money would have to come from somewhere. I don't think the government would implement a rebate scheme as it's open to abuse/fraud and if the only other way to absorb the cost is to pass it on to the customer then you know what that means as we are the customers at the end of the chain.