The case for a new road-user charging scheme in London
![]() |
A new report by Centre for London argues that the UK capital should move towards an innovative new road-user charging scheme which charges drivers on a per-mile basis and is a test bed for other cities. |
Contents |
[edit] Introduction
It’s now apparent that, sooner or later, the government will need to overhaul national vehicle taxation. The switch to cleaner and more fuel-efficient vehicles, along with people’s changing travel habits, mean that revenue from vehicle excise duty (VED) and fuel duty has been declining.
The government’s own policies exacerbate the issue: it has, for example, put in place a long-term fuel duty escalator freeze and is committed to ending the sale of all new conventional petrol and diesel vehicles by 2040.
Many have recommended a distance-based system as a way to ensure road funding is sustained and to accommodate a zero-emissions future. However, there seems to be limited appetite in the Treasury for this at the moment. Perhaps this is because the significant revenue drop is not projected for another 10 years or so, or because fuel duty is currently easy to collect, so there seems to be little incentive to overhaul it.
[edit] How cities and regions are looking at road-user charging
Since the Greater London Authority Act 1999 and the Transport Act 200, cities in England have had the power to implement road-user charging schemes, without holding local referenda or seeking government approval, .
For a long time, London was the only city to have exercised this power with the establishment of the Congestion Charge (CC) in 2003.
The government has now mandated a number of large cities to produce plans to tackle air pollution and some are looking to implement charging or non-charging Clean Air Zones.
London has also established a new environmental charging scheme, the Ultra Low Emission Zone (ULEZ). At the same time, cities and regions are planning different types of road-user charging schemes ahead of central government. Indeed, the government has now mandated a number of large cities to produce plans to tackle air pollution - and some are looking to implement charging or non-charging clean air zones.
[edit] What will happen to local schemes when a national one comes along?
As the number of schemes across the country multiplies, it poses an important question: what happens to these schemes when a new national scheme becomes a priority for central government?
We believe it is vital that any government reforms complement, rather than try to absorb, any existing road-user charging schemes.
It makes sense for central government to replace VED and fuel duty with a distance-based charge for the use of the strategic road network managed by Highways England.
This should be graduated depending on vehicle class and emissions to encourage cleaner vehicles. Its purpose would be purely to replace existing vehicle taxation, ensuring that a proportion of the revenue is hypothecated towards roads spending.
In contrast, the legislation stipulates that any city road-user charging schemes should not be established to raise revenue but solely to address congestion and air pollution – and it makes sense that cities should decide how best to address these negative impacts of driving on locally-managed roads.
This point is illustrated by the great number of variations in different cities’ CAZ proposals: some are non-charging, some are charging commercial vehicles (vans, trucks and buses) only, while others are proposing to charge private cars as well.
For a national scheme to try to absorb and reflect these various arrangements would be too complex, especially local schemes that vary the charge on the basis of locally observed congestion and pollution levels on the roads in question.
[edit] Funding
In the meantime, the government should support London with funding to implement a new distance-based road-user charging scheme, just as other cities can access clean air zone implementation funding and the Transforming Cities Fund.
Once piloted in London, other cities would then be able to introduce elements of the scheme in the implementation of clean air zones to improve their overall air quality and health objectives.
[edit] About this article
This article was written by Silviya Barrett, Research Manager at Centre for London. It was published on the website of The Institution of Civil Engineers in May 2019 and can be accessed here.
[edit] Related articles on Designing Buildings Wiki
- A brighter future for our towns and cities.
- Are electric bikes the future?
- Car sharing.
- Cities as systems - BRE Solutions for urban environments.
- Construction 2025.
- Designing for cycle traffic.
- Government Construction Strategy 2016 2020.
- Integrated transport system.
- London car charging infrastructure.
- London infrastructure plan.
- Road traffic management.
- Sustainable transport.
- The compact sustainable city.
- Towards an urban renaissance.
- Transport assessment.
- Transport design and health.
- Urban design.
Featured articles and news
New Great British Energy partnership launched
Crown estate help to turbocharge energy independence.
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.