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This seems very london bubble to me, it works fine in cities and towns where things are close together, and there is feasible public transport. It fails when you look at rural areas, where years of chronic underfunding means there is no public transport, and as good as cycling and walking are, they can't replace every journey. massively increasing the cost of owning a car would just lead to more people leaving rural settings, and seeing as we are already struggling to find people to work in farming, increasing the cost of doing so, means we will be come even more reliant on imports for food.
So all stick and no carrot ?