Road tolls call by CBI to tackle congestion

BUSINESS leaders have urged the Government to consider a radical long-term vision to introduce road tolls to provide millions of pounds of investment to tackle tailbacks on the nation’s creaking highways network.

The Confederation of British Industry (CBI) has called on Ministers to enforce a “gear change in investment, performance and efficiency” to drag the country’s infrastructure into the 21st century.

Studies have revealed that the UK economy is already losing up to £8bn a year from congestion on the roads, and the figure is predicted to rise to up to £22bn by 2025. A survey by the CBI has also shown that three in four businesses were not confident that transport networks will improve in the next five years.

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The influential lobby group, which represents more than 240,000 companies, has called for the launch of an independent “roads regulator” to oversee a centralised pot of funding. But the CBI admitted road charges may have to be introduced in the future on key strategic routes, such as the M1, A1 and M62 in Yorkshire, to provide enough funding.

The CBI’s Director-General John Cridland warned the case for new funding solutions is “even more compelling” amid the Government’s austerity drive. He also claimed that delivering upgrades to the road network is one of the “highest priorities for the CBI to get the economy moving again”.

He added: “A lack of investment means we are really struggling to increase road capacity, let alone adequately maintain what we already have.”

The CBI has claimed a £10bn shortfall in funding for Highways Agency projects and the prospect of declining motoring tax revenue due to ever-increasing efficiencies in new vehicles makes the current model unsustainable. The plans involve converting a proportion of motoring taxes to a charge – which would be controlled by the regulator – to invest in the strategic road network comprising England’s motorways and major A roads.

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The charge would provide a funding stream for private operators, licensed by the regulator, who would operate regional sections of the network.

But the CBI said that in the long-term the charge alone might not be sufficient to leverage the levels of future investment needed to finance bigger capacity projects.

Private operators would have to finance such projects through long-term borrowing, which could require additional revenue streams, such as tolling, above a standard charge. The regulator would continue to cap charges and manage the overall cost burden on drivers.

Roads Minister Stephen Hammond welcomed the CBI’s report and claimed a government review announced in March will analyse “new ownership and financing models” for the road network. The review’s findings are due to be presented to Prime Minister David Cameron in the autumn, according to Mr Hammond.

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Meanwhile, the Department for Transport confirmed that the Highways Agency will deliver 10 road improvements to boost the economy, reduce congestion and improve safety in Yorkshire and the North East.

The schemes, costing £32.4m, are part of a £217m national programme of work. Upgrades are planned for the M1 at Leeds,
Sheffield and Wakefield and the M62 at Pontefract and Castleford, and are due to be completed by 2015.