A thinktank has suggested the UK should introduce taxes on self-driving cars to address potential issues like increased traffic and job losses in the transportation sector. The first autonomous vehicles, or robotaxis, have just begun operating on London’s streets, but government estimates predict that up to 40% of cars sold in the UK could be self-driving by the middle of the next decade. The report from the Centre for British Progress, a non-partisan thinktank focused on economic growth, warns that the widespread use of autonomous vehicles (AVs) could threaten hundreds of thousands of jobs in the private hire sector, such as taxi drivers. It also suggests that increased use of self-driving cars could reduce reliance on public transport, leading to more congestion on roads. The report recommends implementing charges on AVs now to ease the transition and create a future revenue stream, as traditional fuel duty—currently bringing in about £27bn annually—is expected to decline with the shift to electric vehicles. The report acknowledges that self-driving cars could bring benefits such as improved road safety and new types of jobs in the tech sector. However, it emphasizes that the government should act early to support the 417,000 taxi and private hire drivers in England, of which 121,000 are based in London. It notes that self-driving vehicles could eventually replace many of these roles. The thinktank also highlights that in California, Waymo’s robotaxis often drive without passengers, reducing costs and potentially increasing traffic. According to Department for Transport forecasts, automated driving could increase road miles by 24% by 2050, worsening congestion and slowing traffic. The report urges the government to implement AV taxes now, before self-driving cars become too common, as it would be harder to introduce such charges later when more people own them. The thinktank estimates that by 2050, a tax on AVs set to match the cost of congestion—around 88p per mile—could generate £47bn per year. David Lawrence, one of the report’s authors, compared this to the introduction of fuel duty in 1909, which was established before mass car ownership. He argued that it is better to build up such measures early to avoid political conflicts later. He also pointed out that even if the revenue from AV taxes doesn’t peak until 2050, it could still affect government borrowing costs today, which are crucial for economic planning. The UK government has supported the rollout of AVs as a "transformative opportunity" for the economy, with robotaxi services beginning in London this year. Companies like Uber, partnering with British tech firm Wayve, and international players such as Google’s Waymo and Baidu, are all vying to expand their AV services. Robotaxis already operate in the US, China, the UAE, and now in Zagreb, Croatia. Sarah Gates from Wayve emphasized that AVs represent a significant growth opportunity for the UK, offering high-value jobs and potential tax revenues. However, she warned that introducing sector-specific taxes at this early stage could undermine the government’s growth agenda and discourage innovation. The GMB union, which represents taxi and private hire drivers, argued that an AV tax would not be enough to protect jobs. Simon Rush, president of the GMB London region drivers branch, said that driverless cars threaten the livelihoods of drivers and related businesses. He called for a plan to reskill and redeploy drivers, which has not yet been provided by the government or transport authorities. While an AV charge might help mitigate some economic disruption, the union is urging for more comprehensive action. Uber has not commented on the issue.