A think-tank has recommended that drivers who give fellow commuters a lift should be given a tax break. This idea has been proposed as part of plans to increase workers’ mobility.
A report from Policy Exchange has said there’s a “strong case” for the Government to encourage more car-sharing.
The report said: “Across the eight city regions outside the South East of England, commuting an extra 20 minutes on public transport would put people in touch with an average of two major employment sites - equivalent to 10,000 additional jobs.”
It continued: “Two of the biggest downsides to the car – affordability for people on low incomes and congestion – are being moderated by advancements in technology and the sharing economy.
“Car-sharing, mediated by an app, is lowering the cost of travel for consumers, giving people on low-incomes access to car travel and reducing congestion on the roads.
“Taken together, there is a strong case for the Government to incentivise its growth through commuter tax benefits.”
The report adds that locations such as Birmingham, Leeds and Blackpool would particularly benefit from this tax break, as there’s already a higher than average number of car-sharers in these places.
Policy Exchange suggests a couple of approaches, one of which is to let employers give their workers travel vouchers to pay for ride-sharing, which could be issued before tax. Alternatively the think-tank proposes letting drivers keep a portion of their earning tax-free if they offer people a lift while commuting to work.
The report’s author, Damian Hind, commented: “Commuting can be expensive and tiring but longer commutes can hugely increase people's job prospects. The Government needs to make transport cheaper so people can commute further and more efficiently so that they can get to work faster.”
