Road Pricing Report in the UK

21 July 2004

The UK Department for Transport (DTS) has released its study on Road Pricing. Yes, it is what it sounds like—a pay-for-what-you-use scheme. The entire report with economic analysis is here, along with an executive summary. Preliminary market research on the topic is available here.

The UK is exploring this as a means to manage road congestion, and to address the corollary effect of road congestion: massive CO₂ emissions. The UK takes climate change very seriously.

27. National road pricing is becoming feasible, and it could meet the objectives that the Government has set. In the meantime, a number of congestion charging schemes at the more local level, and Government considering the case for charging new strategic capacity, would amount to a trajectory towards a national road pricing system, leaving open until the appropriate future moment choices either of principle or method that would have to be made along the way.

28. If the Government wishes to make progress towards national road pricing, there are number of steps that it ought to take:

• inform and lead a debate to promote public understanding and trust
• develop proposals on how receipts from road users would be governed, managed and accounted for, and how motoring taxes would be dealt with on the introduction of any road user charging system
• develop a detailed research programme into road users’ attitudes and behaviour, including market research, to inform scheme design and provide a better understanding of the range of travel choices and pricing options which would reflect the different needs of different segments of society; and develop and evaluate pricing propositions likely to appeal to road users as consumers, while keeping the price signals needed to have the right effect
• work with car manufacturers, and take a lead in the EU, on the standards and agreements for equipment in vehicles
• provide detailed guidance and practical assistance to local authorities considering introducing a variety of local charging schemes
• consider how best to provide appropriate incentives to local authorities to introduce local schemes
• consider whether a national back-office and management function would be worthwhile and value for money
• proceed with and develop existing trials of technology
• consider the case for charging for new strategic capacity, building on the successful model of the M6 Toll
• work closely across all levels of government and with stakeholders to share knowledge and consider how best to deliver the benefits of charging.

Appropriately, the first step listed is the discussion with the public—enrolling stakeholders in the decision. As the preliminary market research shows, people will tend to buy in if the scheme shows them:

1. How to get their needs met
2. Where the money is going
3. The reason for it
4. That it is fair and equitable.

Our policymakers could take some lessons from that.