Thinktank Calls for Tax on Self-Driving Cars to Offset Job Losses

A UK think‑tank has called for the immediate introduction of taxes on autonomous vehicles, arguing that widespread adoption of self‑driving cars would threaten hundreds of thousands of private‑hire driving jobs and exacerbate traffic congestion. The report, released this week, warns that as robotaxis begin operating on London streets—an initiative that launched last month—the industry could grow to account for as many as 40 % of all new car sales by the middle of the next decade.

The think‑tank’s analysis highlights the economic risks of a rapid shift to autonomous fleets. It estimates that a significant portion of the current private‑hire workforce, which relies on manual driving, could become redundant if self‑driving technology is deployed at scale. In addition, the report points out that increased vehicle utilisation and the lack of traditional fuel‑tax revenue could strain public transport funding and infrastructure maintenance budgets. The proposed tax would aim to offset these losses and fund congestion‑management initiatives.

While the government has not yet announced a formal tax policy, the report’s findings add urgency to the debate over how best to balance technological progress with social and economic stability. Stakeholders in the transport sector will likely weigh the potential benefits of autonomous vehicles against the need to protect existing jobs and maintain sustainable urban mobility.