DEBATE: Should car share commuters be given a tax break?

tis  Traffic into Harrogate on Leeds Road.  (140205M4c)
tis Traffic into Harrogate on Leeds Road. (140205M4c)

Drivers who share their car journey to work with other commuters should be given a tax break, the government has been told.

There was a “strong case” for the Government to encourage the growth of car-sharing, Policy Exchange found.

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.”

Having access to a car for an extra 20 minutes of commuting time would give even more options, the report said.

“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 suggested such a policy would have a particular benefit in Birmingham, Leeds, Hull and Blackpool where there was already a higher than average number of car sharers.

The think-tank suggested either allowing employers to give workers travel vouchers to pay for ride-sharing, which could be issued before tax, or allowing drivers to keep a portion of their earnings tax-free if they offer people a lift.

The report also suggested the introduction of part-time rail tickets to reduce fares for commuters who travel to work three or four days a week, the devolution of rail franchises to local transport bodies in city regions and giving councils responsibility for the commercial bus subsidy.

Report author Damian Hind said: “Reducing the costs associated with longer commutes is one of the best ways to boost employment and wages. Greater local control over public transport, flexible rail fares and tax incentives for car-sharing are among the many ways of encouraging people to travel a bit longer in search of better jobs.”

What do you think? Would you be happy to share your commute if you were to get a tax break? Comment below or find us on Facebook or Twitter