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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
0
10
20
30
40
50
60
70
1991 1996 2001 2006 2011 2016 2021 2026 2031
Po
pu
lati
on
(m
illo
ns)
0
10
20
30
40
50
60
70
1991 1996 2001 2006 2011 2016 2021 2026 2031
Po
pu
lati
on
(m
illo
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
0
20
40
60
80
100
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
Year : April
dies
el p
rice
: pen
ce p
er li
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)
0%
20%
40%
60%
80%
100%
Derby Bristol Reading
<2km <10km <20km
0%
20%
40%
60%
80%
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 …
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
1993
1994
1995
1996
1997
1998
1999
2000
2002
/03
Ca
rs p
er
ad
ult
North East
North West
South East
South West
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
1993
1994
1995
1996
1997
1998
1999
2000
2002
/03
Ca
rs p
er
ad
ult
North East
North West
South East
South West
Cars per household & mileage going up
0
10
20
30
40
50
1990 1992 1994 1996 1998 2000 2002
No car One car Two or more cars
0
10
20
30
40
50
1990 1992 1994 1996 1998 2000 2002
No car One car Two or more cars
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1 car household 2 car household 3 car household
An
nu
al m
ileag
e
1st car 2nd car 3rd car
Source: National Travel Survey
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1 car household 2 car household 3 car household
An
nu
al m
ileag
e
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
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