Additionally with the loss of duty on fuel we lose the heavier taxation for the less economical vehicles.
What this means in the wider scheme of things, everything else remaining the same, is that it will become even more imperative to live close to where you work. Less number of skilled employees to choose from (or those that are and live far away will command a higher fee), businesses may even choose to relocate to high population density areas to get the skills they need..
I just think it's going to be a huge downer on the economy and force the cost of living up yet again. It may improve quality of life for those who can still afford to run vehicles on the roads as there may well be less congestion.. but mainly due to lost jobs.
My advice? Get a bike and hope that they don't impose it on bikes ;)