Self-driving cars should be taxed to offset job losses, thinktank urges

A report by the Centre for British Progress has proposed that the UK government introduce taxes on autonomous vehicles (AVs) to mitigate the economic impact of their adoption. As robotaxis begin operating in London, the thinktank warns that widespread AV usage could threaten hundreds of thousands of private hire jobs and increase road congestion. The proposed tax aims to replace declining fuel duty revenue while funding the transition for displaced workers. While government forecasts suggest AVs will boost the economy, industry players like Wayve argue that such taxes would penalize innovation and hinder the UK's competitive advantage in a global market. Meanwhile, unions representing drivers argue that a tax alone is insufficient, calling for comprehensive reskilling programs. The debate highlights the tension between embracing transformative autonomous technology and managing the social and fiscal consequences of replacing human labor with automated systems.