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 Inward migration a significant factor

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

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)

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 …

Cars per household & mileage going up

But money & management only get so far.. & 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% CO 2 : -5% NO x : -7% PM 10 : -6% Congestion: - 48% New pricing Fuel duty reduced to be revenue neutral Nil Overall traffic: +2% Urban traffic: - 4% CO 2 : -1% NO x : -4% PM 10 : -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