Delivery on the 10 Year Plan - The verdict of the freight transport industry

Managing demand

Progress

Infrastructure charging can provide a price signal to encourage all road users to make better decisions on what roads are used and the time that those roads are used. The Government announced in the Budget 2002 that it intended to go ahead with a satellite based charge for trucks covering all UK roads from 2006. This charge will be introduced alongside reductions in diesel duty to achieve overall tax neutrality for the road transport sector. Infrastructure charging will better influence operators behaviour in terms of when and where trucks are used.

Congestion Charging was introduced in Durham in October 2002 and in London in February 2003. In both cases, it has been reported that traffic conditions have improved within the congestion charging zone.

10 Year Plan promises	Government delivery to date
CONGESTION CHARGING
London	London
One of the first schemes to be in London		London Congestion Charging introduced 17 February 2003 @ £5/vehicle/day
Possible £5-£7.50 charge for entering London
Possible 10-15% reduction in traffic in Central London due to Congestion Charging		Initial estimates by Isotrack are that London Congestion Charging has cut traffic levels by 20%
Other		Other
12 councils interested		Congestion Charging introduced to Durham city centre in October 2002. Traffic reduced by up to 90%
10 Year Plan targets assume 8 schemes to be established generating £2.6bn over the life of the plan		Consultations in Edinburgh have been suspended
		13 other councils are monitoring the results in London
ROAD PRICING
Inter urban road pricing discussed but no specific proposals identified		Distance-based charging proposed for lorries from 2006 but no plans for cars before 2010
FUEL PRICES
Fuel duty determined on Budget by Budget basis		Fuel duty reduced by 3ppl in March 2001 budget and frozen in March 2002 budget as a result of sustained high world oil prices. A 1.28ppl increase was deferred in the 2003 budget to 1 October 2003
Long run sustainable price of crude oil expected to fall from $28 to $16 a barrel by 2010 ( at 1999 prices)		Crude oil at $27 a barrel
Hypothecation of fuel duty revenues remains the Chancellor's domain for the future London		Chancellor confirmed that future increases in fuel duty above inflation would be hypothecated in transport

The Government has so far proved unwilling to commit itself to the wider introduction of infrastructure charging to car drivers. Increased delays have been experienced on the edges of congestion charging zones and businesses inside the zones have reported a slowdown in business. Industry is concerned that a piecemeal approach to the technology congestion charging uses, and its administration and enforcement, has the potential to create significant additional red tape for operators.

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Last updated: Wed Jul 21 14:21:20 2004