Road pricing

Road pricing

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

The “why” goes right back to key goals

• Economic growth• International competitiveness

• Housing• New homes & accessibility

• Environment• Climate change

• Local environment, including safety, noise, air quality

• Economic growth• International competitiveness

• Housing• New homes & accessibility

• Environment• Climate change

• Local environment, including safety, noise, air quality

The Big Picture - UK GDP growth

GB population & households growing

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10

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70

1991 1996 2001 2006 2011 2016 2021 2026 2031

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(m

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ns)

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1991 1996 2001 2006 2011 2016 2021 2026 2031

Po

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ns)

• Inward migration a significant factor• Inward migration a significant factor

90

100

110

120

130

140

Households Population

In real terms diesel prices are back to mid-80s levels

Diesel prices (inc all duty) : April 1983 - April 2003

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1983

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Year : April

dies

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: pen

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tre current price

constant(2003) price

How we live, work and travel

• We are a largely urban population• half of us live in just 31 out of 1950 settlements

• only 10% live in “rural” areas

• But we’re less likely to move house for work• portfolio careers

• over 30% of households are now “dual earner”

• others in households get settled too – e.g. children at school

• So we move house less, and accept longer commutes

• We are a largely urban population• half of us live in just 31 out of 1950 settlements

• only 10% live in “rural” areas

• But we’re less likely to move house for work• portfolio careers

• over 30% of households are now “dual earner”

• others in households get settled too – e.g. children at school

• So we move house less, and accept longer commutes

Taking advantage of “nearby” opportunities …

Distance between centres of urban areas

Some of these commutes are getting long

(2001 Census; crow-fly distance to workplace area)

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80%

100%

Derby Bristol Reading

<2km <10km <20km

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100%

Derby Bristol Reading

<2km <10km <20km

Most of these trips cannot easily be made “door to door” by public transport

Management helps

But money & management only get so far

While there’s still potential for more car ownership …While there’s still potential for more car ownership …

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0.80

1993

1994

1995

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2002

/03

Ca

rs p

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ad

ult

North East

North West

South East

South West

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1993

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Cars per household & mileage going up

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50

1990 1992 1994 1996 1998 2000 2002

No car One car Two or more cars

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1990 1992 1994 1996 1998 2000 2002

No car One car Two or more cars

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1 car household 2 car household 3 car household

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1st car 2nd car 3rd car

Source: National Travel Survey

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1 car household 2 car household 3 car household

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1st car 2nd car 3rd car

Source: National Travel Survey

But money & management only get so far

.. & limits to new roads.. & limits to new roads

So, why road pricing ?

• Because it is the most credible long term option• Our other levers only get us so far

• Reflected in the public debate• Now about details – what ? how ? when ?• Rather than the principle

• Because it is the most credible long term option• Our other levers only get us so far

• Reflected in the public debate• Now about details – what ? how ? when ?• Rather than the principle

Road pricing

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

What is road pricing ?

• A smarter way of paying for using the roads

• With prices that reflect how busy the road is

• A smarter way of paying for using the roads

• With prices that reflect how busy the road is

At the moment we all pay the same

But some journeys should cost more

London

Durham

At a national level, pricing has big effects

Net

revenue

Impact on traffic Environmental

effects

Impact on

congestion

New pricing

Revenue to

Government

£8.6 bn Overall traffic: - 3%

Urban traffic : - 9%

CO2: -5%

NOx: -7%

PM10: -6%

Congestion: - 48%

New pricing

Fuel duty

reduced to be

revenue neutral

Nil Overall traffic: +2%

Urban traffic: - 4%

CO2: -1%

NOx: -4%

PM10: -5%

Congestion: - 41%

But to get there requires

• Payment rules• Either driver is responsible for declaring journey

• Or system issues bills

• Or a bit of both

• Technology• Either all outside the car

• Or some inside

• Back office• Money

• Compliance

• Payment rules• Either driver is responsible for declaring journey

• Or system issues bills

• Or a bit of both

• Technology• Either all outside the car

• Or some inside

• Back office• Money

• Compliance

And, crucially, public support

• It still faces very demanding public tests• Is it a stealth tax ? • Is Government going to spy on me ?• Will the scheme work / cost too much to run ?• Is there a convenient alternative transport ?• Will it be fair ? “Rich can afford”; “I have to drive” • Will I understand my bills ?

• It still faces very demanding public tests• Is it a stealth tax ? • Is Government going to spy on me ?• Will the scheme work / cost too much to run ?• Is there a convenient alternative transport ?• Will it be fair ? “Rich can afford”; “I have to drive” • Will I understand my bills ?

Road pricing

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

The emerging framework for road pricing

• Tackle congestion problems here today / in medium term

• But at same time lay the foundation for wider roll out

• Tackle congestion problems here today / in medium term

• But at same time lay the foundation for wider roll out

Tackle congestion problems here today …

• In a few pathfinder areas

• With road pricing technology used elsewhere• Say microwave technology

• As part of package of investment from the TIF• So there are public transport and park and ride options

• In a few pathfinder areas

• With road pricing technology used elsewhere• Say microwave technology

• As part of package of investment from the TIF• So there are public transport and park and ride options

… while laying foundation for wider roll out

• Offering optional alternative technology in pathfinders• For example, based on satellite positioning

• With mobile telephony reporting that position

• Piggy-backing off other commercially provided systems• For example, existing pay-as-you-go insurance

• Or mobile phones themselves

• So that• We encourage solutions from a growing industry

• We don’t need to see the raw data ourselves – privacy is protected

• We don’t need to put up gantries all over the country

• Offering optional alternative technology in pathfinders• For example, based on satellite positioning

• With mobile telephony reporting that position

• Piggy-backing off other commercially provided systems• For example, existing pay-as-you-go insurance

• Or mobile phones themselves

• So that• We encourage solutions from a growing industry

• We don’t need to see the raw data ourselves – privacy is protected

• We don’t need to put up gantries all over the country

Road pricing

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

• 7 areas • West Midlands, Greater Manchester, Tyne and Wear, Bristol area,

Cambridge, Shrewsbury, Durham

• Schemes (and investment) in place from 2010 ?

• 7 areas • West Midlands, Greater Manchester, Tyne and Wear, Bristol area,

Cambridge, Shrewsbury, Durham

• Schemes (and investment) in place from 2010 ?

Framework to be tested in real places

Road pricing

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

• Why ?

• What is it ?

• How might it be introduced ?

• Where and when ?

• How might it work?

Designing the system:The driver who uses several schemes should..

Need only one piece of equipment in car

• Approval arrangements to ensure interoperability

Not be confused with other users

• Standardised arrangements for identifying vehicles and infrastructure.

Receive one bill

• Back offices able to exchange information (security etc)

Be clear about the consequences of failing to pay

• Consistent enforcement arrangements

Need only one piece of equipment in car

• Approval arrangements to ensure interoperability

Not be confused with other users

• Standardised arrangements for identifying vehicles and infrastructure.

Receive one bill

• Back offices able to exchange information (security etc)

Be clear about the consequences of failing to pay

• Consistent enforcement arrangements

Designing the system:work with grain of commercial development

• We don’t want, or need, to do everything ourselves

• Looking to “piggyback” on existing and emerging services

• Good for cost & risk• Good for privacy

• We don’t want, or need, to do everything ourselves

• Looking to “piggyback” on existing and emerging services

• Good for cost & risk• Good for privacy

Norwich Union Pilot with 5000 “boxes” in volunteer policy holders’ cars Simple combination of satellite positioning and telephony

Time and place broadcast back to NU