Road charging trials set to begin before 2010
Tue 06 September 2005
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Road charging is set to begin within five years with a nationwide scheme possible by 2015 according to the Secretary of State for Transport.
Mr Darling said that road user charges could replace fuel duties and road tax (VED) and be close to 'revenue neutral' ie it could leave up to half of motorists better off.
The Transport Secretary appears to have ruled out discounts for low carbon and fuel efficient cars. "Having different rates for different cars would add an additional complexity...There are other things we can do to encourage people to drive environmentally-friendly cars," he said.
Mr Darling said that road charging would not begin all in one go but that pilot projects will be introduced and £200 million in funding made available for local traffic management schemes that would include road-pricing.
He said that a recent feasibility study reported that a road pricing scheme could achieve a 40% reduction in congestion with only 4% less cars using the road.
"Our objective is not to put people off the roads. It is to enable us to get more out of the network," the Secretary of State said.
The full text of Mr Darling's speech which appears on the DfT website (see below), says: "Climate change is a fundamental priority for this Government - as the PM has made clear for our Presidency of the G8 and EU. For any road pricing scheme developed, we would ensure that incentives for cleaner vehicles are safeguarded in order to contribute to meeting our targets on CO2 levels."
There were a range of responses to the announcement. Environment stakeholders mostly expressed concern that road user charging would weaken incentives - created through high fuel duty and differentiated VED - for people to drive low carbon and fuel efficient cars.
Stephen Joseph of Transport 2000 said: "We want the mileage rate for 'gas guzzlers' to be twice or even three times that for 'greener' vehicles..."
Greenpeace said that they wanted to see the scheme graduated so that the least fuel efficient cars paid more. "We want to see a climate angle, not just a congestion angle", a spokesperson said.
The Energy Saving Trust have called for a significant steepening of Vehicle Excise Duty bands to ensure that there is a worthwhile incentive to buy a low carbon car. They said the cleanest - 'Band A' - vehicles should pay no road tax, or receive a tax 'bonus'.
Industry and road user groups responses were mixed. The SMMT Chief Executive Christopher Macgowan, said: "Charging may well have a role in managing demand on our congested road network but it must not lead to an increase in tax take from the motorist. Any plans to change driving habits will only succeed if government delivers an improved infrastructure and a credible, cost efficient public transport network."
The RAC gave the scheme a cautious welcome. A spokesman said: "Broadly we support the concept of looking at a different system, and we have to face the facts that we have to look at some difficult decisions and some radical proposals."
Related Links
Department for Transport - full speech text
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