CIHT supports today’s report by the Institute for Fiscal Studies (IFS) commissioned by the RAC Foundation that argues that there is a compelling case for road charging in the UK.

The current pressures on UK public spending combined with an improved public understanding of the current economic circumstances have created an opportunity to consider the introduction of road pricing.

CIHT believe that road pricing at both the national and local level has real potential to deliver social, environmental and economic benefits including a dedicated funding stream for transport infrastructure improvements and maintenance.

For CIHT the potential benefits of road pricing includes a means of managing road space which on many of our urban and inter-urban roads is currently congested. The UK Government predicts that the cost of this congestion will rise to £22 billion per annum by 2025.

Our profession also recognises that it is difficult to secure public support for road pricing, particularly for a national scheme. Consequently, any road pricing scheme must also provide significant improvements in the capacity and quality of viable alternative travel by public transport.

CIHT believes it is essential that greater public support for road pricing is achieved through sensible informed debate. Take for example rail and air travel; the public accepts that, at peak periods of demand, rail and air capacity is stretched and higher prices are charged. Similarly road capacity is a scarce resource and differential charges between peak and off-peak periods could provide the means to effectively manage that resource. The way in which the charges could be regulated and levied and how the financial proceeds used must be spelled out clearly to gain public support.

Road pricing must not be viewed by the public as a national road tax. CIHT believe that  to be a success any implementation must be:
•    fair – any system must be inclusive, accessible and equitable
•    proportional - giving priority to road vehicles based on their value to the economy and society
•    and involve sustained investment - must be improvements in the capacity and quality of viable alternative travel by public transport.
 

The report highlights forecasts from the Office for Budget Responsibility that predict tax revenues from duties will fall by £13bn a year, at current prices, by 2029, as cars become electrified and more fuel-efficient. Plugging the gap would require a 50% rise in fuel duty, according to the IFS.
 

This combined with the UK’s current financial situation means that there is likely to be limited opportunity for large public spending infrastructure projects and attention may have to shift to user charging and private sector investment in new infrastructure.

Road pricing offers a solution: a shift away from taxation to charges at the point of use and the opportunity to attract private sector to the potential revenue streams available from tolling.