Motorway toll plan
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to beat jams
By David Thomas • The Government is considering a system of tolls which would cover existing inter-urban trunk roads.
In his Autumn statement Chancellor Norman Lamont ended years of speculation by anouncing that the Government is to publish a Green Paper on the subject next year.
The toll plan follows last month's news that by the year 2000 operators will be charged for every mile their trucks cover in towns (CM 1-7 Oct).
Lamont told the Commons: "If, in the light of consultation, the Government decides to proceed with charges for interurban roads, this would create significant new opportunities for private finance."
The Department of Transport says: "II an operator can reach a destination in less time then we believe he will be prepared to pay for this facility." It believes there can "never be enough money" to build all the roads people want, and that joint ventures with the private sector are the answer.
Fears of Britain's cities being ringed by massive toll-booth areas were voiced immediately by the Road Haulage Association, which believes the Green Paper indicates that the Government is committed to the idea. Director-general Bryan Colley accuses the Government of "funding our road building policy by the back door" while spending only £6 billion of the £15bn collected from road users every year on roads. He says: "Tolls roads are going to cost their users money and the Government seems to treat the transport industry as a bottomless pit."
However the Freight Transport Association welcomes the increased involvement of private contractors in building roads. It is also "reasonably pleased" that the 32.2bn-a-year road programme has escaped cuts for the next three years.
Although the Chancellor signalled a formal relaxation of Treasury rules to allow the involvement of private finance, the Government has already tested the water with plans for private sector funding of the 50km Birmingham north relief road which is due to be completed by 2000.
The Green Paper announcement shows that politicians think the increasing problem of congestion outweighs fears that charging vehicle users for road use would alienate voters. As part of a .£3m study on congestion the DOT is asking operators within the M25 for their views on road pricing in cities. Operators could be charged on a distance-based system or a cordon system which would begin when a designated line was crossed. ID Despite Lamont's 1% interest rate cut, and help for the construction industry, there are fears that the abolition of car tax will lead to hefty increases in VED and diesel duty next year.
But there is widespread support for the 40% capital allowance from 1 November, even though the rate reverts to 25% after 31 October 1993. "Whether operators buy outright or lease vehicles, they should benefit from this increase in the write down level," says the RHA.