Yorkshire tolls fear as Cameron unveils plans to privatise roads

David Cameron set out plans yesterday to attract private money into the roads and boost Britain’s airport capacity as he promised to take on “vested interests” to force through improvements to the transport network.

Speaking ahead of tomorrow’s Budget, in which Chancellor George Osborne will have little spare cash for investment, the Prime Minister said he wanted to look “urgently” at private-sector options to boost infrastructure – which could involve tolls for new road developments such as a long called-for widening of the M1 motorway.

Mr Cameron also announced a further £150m towards a Government fund to boost house-building around the UK. The cash will be diverted to private developers – mostly through commercial loans – to get building schemes under way where work has stalled due to a lack of finance.

A shortlist of more than 200 such schemes which may received funding was unveiled by Whitehall yesterday, including 33 different projects in Yorkshire totalling 1,700 homes.

The Prime Minister said investment in infrastructure would be vital if the UK is not to fall further behind in the world – and that better transport links would be key.

“Without world-class transport we will not get growth, people won’t invest here and regions in decline will be further left behind,” he said.

“Without better transport, we will continue to pollute, too.”

Mr Cameron said the country needed to be “more ambitious” about improvements to its road network.

“We need to look urgently at the options for getting large-scale private investment into the national roads network – from sovereign wealth funds, pension funds, and other investors,” he said.

The Department for Transport and the Treasury have been asked to carry out a feasibility study by this autumn of new ownership and financing models for the national roads system, to encourage investors to back desperately-needed upgrades to the ageing network.

But Mr Cameron added: “Let me be clear: this is not about mass tolling – and as I’ve said, we’re not tolling existing roads – it’s about getting more out of the money that motorists already pay.”

The announcement was welcomed by business leaders desperate to see any investment into the crowded roads and cut congestion on motorways and in urban centres.

But there was speculation last night that any major improvement on existing roads – such as a new lane added to an existing motorway – could lead to tolls for the entire highway.

Maria Eagle MP, Labour’s Shadow Transport Secretary, said: “The Prime Minister’s double-speak gives the impression that his privatisation plans will only see tolls applied to new roads.

“Yet he has redefined new roads to include anything that adds capacity including road widening and junction improvements.

“Motorists will rightly consider that to be a clear plan for charging for existing roads. The Government’s plans leave more questions than answers.”

Mr Cameron also revived speculation about a new “Boris Island” airport in the Thames estuary, saying the Government’s aviation review will look at the pros and cons of an idea which has been heavily promoted by London Mayor Boris Johnson.

“I’m not blind to the need to increase airport capacity, particularly in the South-East,” Mr Cameron said.

“Yes, this will be controversial.. (but) we will need to take decisions for the long-term.”

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