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Self-driving growth: Securing local benefit from autonomous vehicles

Self-driving, autonomous vehicles (AVs) are now carrying their first paying passengers in London. This creates winners and losers: while AVs bring real benefits to passengers, declining fuel duty revenues will leave a huge gap in the public budget, and they pose a threat to private hire drivers while worsening congestion. The government can manage this transition and support those most affected by introducing a tax on AVs. This would also generate substantial revenue, replacing much of what is lost to fuel duty’s depletion.