The facts:

• A good transport infrastructure is essential to the health of the UK economy. However, traffic congestion is now more commonplace and this presents a real problem - unpredictable journey times and lengthy delays all add to the costs of UK businesses
• The Department for Transport estimates there will be a 30% increase in road traffic by 2015, compared to 2000 levels. According to the Eddington Report, published in December 2006, the rising cost of congestion will waste an extra £22 billion worth of time in England alone by 2025
• Road pricing is part of a package of measures being considered to tackle congestion on our roads
• The feasibility study on Road Pricing published in July 2004 estimated that a road pricing scheme could achieve a 40% reduction in congestion with only 4% less cars on the road
• The study set out a range of charges from 2p a mile, through to £1.34 a mile on the busiest roads. The maximum charge would only be paid by half a percent of traffic
• Road user charging exists in the UK in the form of standalone road pricing schemes such as the London Congestion Charging Scheme and M6 toll-road
• The Transport Innovation fund was set up to provide funding to local and regional schemes tackling congestion and public transport. Up to £200 million per annum will be made available to support such schemes (Journey Time reliability on Motorway and Trunk Roads: Measure for PSA Target, DfT, 14/02/06)
• The local authorities who have benefited from a share of £14.5 million out of a total of initial £18 million in funding for their initial investigations are:
  • Bristol City Council, Bath and North East Somerset Council, North Somerset Council and South Gloucestershire Council
  • Cambridgeshire
  • Durham County Council (for Durham City)
  • East Midlands (Nottingham, Derby and Leicester and the surrounding counties)
  • Greater Manchester
  • Norfolk County Council (for Norwich)
  • Reading
  • Shropshire County Council
  • Tyne and Wear
  • West Midlands conurbation
• In May 2007, the Government published a draft Local Transport Bill. The draft Bill will give councils more flexibility to match road pricing schemes to local conditions, while ensuring they remain compatible with schemes in other areas. The draft Bill does not enable national road pricing
• Levels of public acceptance depend on a variety of factors including the purpose of the system, how beneficial it is perceived to be, the collection method of the tolls, investment of generated revenue and the existence of viable alternatives
• With a proposed pilot road pricing scheme that could be in place in 5-6 years time, it is also important to establish who will set the charges, who will pay the cost of equipment, the impact on congestion and the impact on employment patterns, industry relocation and toll roads
• The current scheme in London includes exemptions for breakdown and recovery operators. This policy should set the precedent for any future local and national road pricing schemes

RAC position:

• RAC supports the use of road user charging as one of a number of measures to tackle congestion on the busiest roads in the UK. However, it is vital that motorists are provided with realistic alternatives to travel by car. Upfront investment is needed to provide a safe, affordable and reliable public transport system
• RAC believes that the prime objective of any road pricing initiative should be to ease congestion on the busiest roads at peak times. Fairness, transparency, privacy and accessibility should be principles which underpin any scheme
• RAC further argues that any proceeds from a charging scheme should be targeted on improvements in road infrastructure and public transport. It is important that any re-investment is in addition to, and not in place of, existing and proposed transport funding
• Government needs to focus on the national picture and ensure there is a consistent approach across the country in terms of technology, charging and exemptions or discounts to ease any administrative burden on business and to avoid confusion for the general motorist
• Road charges should not be an additional tax on motorists and that there should be a full review of motoring taxation before any nationwide schemes are implemented. The government needs to provide cast-iron guarantees on reductions in fuel tax and VED (road tax)
• The Government also needs to establish who would provide, and importantly pay, for the new technology needed to support this system

For further information contact:

Telephone: 01603 681914
Email: jon.day@aviva.co.uk

Updated August 2007

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