Review of the Ten Year Transport Plan
20 July 2004

The Government has published its revised Ten Year Transport Plan. This is in the form of a White Paper, 'The Future of Transport: a network for 2030', which sets out its vision for transport for the next 30 years. Alongside the White Paper it has published the results of a year long road pricing feasibility study. This briefing note identifies the key features of both documents that affect freight transport

Transport investment

Last week (Monday 12 July) in the Comprehensive Spending Review the Chancellor announced that planned spending on transport over the next three years would increase from £10.4 billion this year to over £12.8 billion by 2007/08. The White Paper sets out investment plans for 2010/11 to 2014/15 for the first time. Public spending on transport is forecast to rise in line with the expected growth in the economy during this period.

In the 2000 Ten Year Transport Plan the Government promised to spend £180 billion over the 10 year period. No comparable commitment is made in the 2004 White Paper.

On top of the baseline spending projections, the Government plans to establish a new Transport Innovation Fund from 2008/09. Details of the operation and size of the fund will be announced alongside the 2005 Budget.

Road transport

High Occupancy Vehicle lanes

The White Paper contains a commitment to better traffic management aimed at easing congestion on the road network, including the introduction of High Occupancy Vehicle lanes. The site selected for a pilot scheme will be announced later this year.

Road freight

Urban access: Local authorities will be encouraged to consider how their various regulatory powers in relation to traffic and parking regulations, night-time bans, planning powers and the use of planning conditions, can be coordinated to make life easier for deliveries.

Graduated fixed penalties: Proposals will be taken forward to introduce a graduated fixed-penalty scheme for road traffic infringements.

Foreign truck enforcement: Powers will be sought to introduce a deposit scheme to ensure offending overseas hauliers do not escape penalties.

Freight grants: Separate programmes to encourage transfer of freight traffic to rail and water, and to support more efficient operating practices for road haulage will be merged. In the future these funds will be allocated according to the benefits of individual projects.

Measuring progress in reducing congestion

The Government will be producing an improved set of indicators which establish congestion ratings for key routes. This will take account of delays, severity (time spend below a threshold speed), and reliability of journey times. New targets will be published by July 2005.

Road pricing

A Road Pricing Feasibility Study, published in parallel with the White Paper considers the role of road pricing - alongside complimentary policies - in addressing congestion over the next 30 years. The study concludes that the introduction of a national road pricing scheme is predicated on securing public support and:

• would not be available in a mass market, low cost form for at least 10 to 15 years should be based on time of travel, distance travelled and roads used. It would require positioning technology, possibly using satellite systems, as well as a complex 'box' on board the vehicle
• requires the involvement of local authorities in its development
• should be operated by central Government, based on systems fitted in all cars. This should follow international negotiations on standards, with a common back office and a consequential reduction in other current motoring taxes
• should include a facility for local variation of the distance charge - up and down - to reflect congested and uncongested conditions and other external costs
• could raise revenues to fund public transport or new road capacity, or to return revenue to road users through lower VED and fuel duty

The study estimates that a national road-pricing scheme could reduce urban congestion by nearly half, through an overall reduction in urban traffic levels of only four per cent. If it is well-targeted a national road pricing scheme has the potential to achieve £10 billion worth of time savings a year. More than half of traffic would pay less than it would otherwise be paying in fuel taxes, and only a small proportion of traffic paying the highest charge levels.

In the White Paper, the Government commits itself to leading the debate on road pricing, working with stakeholders to establish how and when pricing might provide the reliability and standards that road users want.

Rail transport

Key changes in the structure for the rail industry were set out by the Government in its Rail Review which was publish on Thursday 15 July. The White Paper affirms these changes including the objective of ensuring a better deal for rail freight. It also recognises the strong business case for Crossrail. The Government intends to introduce a Bill at the earliest opportunity that will provide the appropriate powers for its construction.

Shipping and ports

By autumn 2005 the Government expects to have taken decisions on the outstanding proposals for major container port development.

The White Paper restates the Government's commitment to encourage UK business to exploit opportunities for greater diversification in short-sea roll-on, roll-off capacity, reducing the need for long connecting road and rail journeys.

Air and airports

The Government remains committed to including aviation in the European Union emissions trading scheme in 2008 or as soon as possible thereafter. It will try to make progress towards this priority during the UK's presidency of the European Union in 2005.

Security

The Government remains wedded to the principal that the transport industry should cover the cost of introducing transport security regimes.

FTA comment

There is nothing in this transport plan to provide fast or effective relief from congestion for Britain's freight transport industry. Widening of our key trade routes should be a no-brainer. However, the best the white paper can offer is yet more deliberation and resignation that there will still be jams tomorrow.

The Secretary of State has re-stated all the known problems but has failed to say when solutions will be provided. The introduction of road pricing for all is inevitable. But with an introduction date of 15 years away, it does nothing to ease congestion today, tomorrow or even next year.

We had hoped to hear how congestion would be relieved in the next 10 years, primarily by widening existing motorways, but there is no formal commitment that these urgently needed improvements will get the go ahead in the near future. Without targets or a clear plan for delivery, this transport white paper is a grave disappointment to industry.

Further information

For further information, members should contact:

Simon Chapman, Chief Economist dtel: 01892 552274 email schapman@fta.co.uk

Rachel Sheridan-White, Economics Analyst dtel: 01892 552365 email rsheridanwhite@fta.co.uk

Last updated: Fri Jul 23 11:36:01 2004