Select Committee on Transport Written Evidence


Memorandum by Transport for London (RP 38)

ROAD PRICING

1.  INTRODUCTION

Transport for London

  1.1  Transport for London (TfL) is the integrated body responsible for the capital's transport system. Its role is to implement the Mayor's Transport Strategy[64] and manage the transport services across the capital for which the Mayor has responsibility. TfL also manages a 580 km network of strategic roads, all of London's 4,600 traffic lights and is responsible for the implementation and operation of the central London congestion charge.

Central London congestion charging

  1.2  The central London congestion charge, a £5 daily charge for driving or parking a vehicle on public roads in a 22 square kilometre zone of central London, came into operation on Monday 17 February 2003. The principal aim of the charge is to reduce traffic congestion in the heart of the capital where it was at its most severe. Central London was the most congested area in the UK. Inner and outer London also suffer a high level of congestion, to the extent that 40% of all the UK's congestion occurs in Greater London.

  1.3  Monitoring results published after the first 12 months of operation[65] showed that congestion charging has produced significant benefits for people travelling in and around central London. Indications of the impacts of the charge are:

    —  A reduction of around 30% in traffic congestion, with diverted traffic being successfully accommodated.

    —  Car journeys to and from the zone are quicker and more reliable, with decreased journey times.

    —  Drivers in the charging zone are spending less time in traffic queues (stationary or travelling at below 10 kilometres per hour).

    —  The majority of former car users have transferred to public transport, as projected, and public transport is coping well.

    —  Reduced congestion has helped deliver significant improvements in bus journey times and reliability, with shorter waiting times for passengers.

    —  A reduction in road accidents has been recorded, although it is too early to draw firm conclusions; and reduced traffic has enhanced amenity on central London's streets.

  1.4  The scale of reduced travel to central London resulting directly from congestion charging is very small and not compatible with the scale of effects claimed by some retailers. The available evidence suggests the operation of other more pervasive factors in determining the economic performance of central London during 2003.

Current developments in road user charging in London

  1.5  In view of the success of the central London scheme reducing traffic congestion, the Mayor asked TfL to consult on an outline proposal to extend the current charging zone to the west, in order to tackle the next most pressing congestion problem in the capital. An initial round of consultation in spring and summer 2004 resulted in the publication of a revision to the Mayor's Transport Strategy in August 2004.[66] Discussions with the most directly affected boroughs are currently ongoing and TfL intends to begin the next phase of consultation on a detailed proposal set out in a draft Scheme Order in early 2005. Subject to a mayoral decision, following public consultation, the earliest any such extension could begin operating would be in early 2007.

  1.6  In March 2004, the TfL Board gave the go ahead to TfL to apply for powers to build the Thames Gateway Bridge. It is intended that a toll would be charged for most vehicles using the bridge (with discounts for local traffic), to cover the costs of construction and operation. The bridge could be complete in 2013. No decision has been made regarding likely charging technology.

  1.7  The central London congestion charge is enforced using a network of CCTV cameras linked to Automatic Number Plate Readers (ANPR). TfL believes that there could be benefits to charging using more sophisticated technology and is investigating the potential of Global Navigation Satellite Systems (GNSS), such as GPS, as well as microwave "tag and beacon" and mobile phone technologies, with trials that have taken place during 2004 and further that are planned for 2005. The trials thus far have both informed the development of a westward extension of the congestion charging zone and provided a background to future policy development. TfL's initial conclusions from the trials are that GPS and mobile phone technologies currently do not afford accurate enough location information for charging in built up urban areas such as London. Further development is required, and solutions based on these technologies are unlikely to be available until the next decade. Nevertheless tag & beacon could offer a more flexible charging solution in the medium term, whilst improved ANPR systems (digital cameras, roadside ANPR and broadband communications) could offer benefits in the short term.

  1.8  In all these developments, TfL is liaising closely with the Department for Transport, HM Customs and Excise (in their work on Lorry Road User Charging) and the European Commission.

  1.9  Apart from the developments listed above, and some smaller scale proposals to improve the operation of the existing congestion charging scheme, there are no other TfL proposals for road user charging in other parts of London.

2.  THE COMMITTEE'S INQUIRY

Should road pricing be introduced for certain sections of the road network in the short term? What role should local highway authorities play in introducing road pricing?

  2.1  Taking the broadest possible definition of "road pricing" as any form of charge for road use, TfL believes that the development of local charging schemes in the short term to tackle congestion, or generate a revenue stream for the funding of transport investment, should continue to be encouraged; alongside other means to restrict road use, such as parking controls. The implementation of any form of national charging scheme is not anticipated before 2014, partly due to the availability of an appropriate technical solution. The economic, social and environmental costs of congestion, which, if unabated, are set to get worse as a result of increased population, car ownership and usage, need to be tackled in the short term. Congestion charging using current and proven technology remains the best tool presently available to achieve this, where appropriate. Any eventual national charging policy thus needs to be flexible enough to encompass the aims of local charging schemes, whilst any new schemes implemented in advance of a national charging policy will need to be mindful of the implications of possible future national developments.

  2.2  Road user charging schemes should be introduced in the context of an overall strategy aimed at reducing congestion and increasing the attractiveness of alternative travel modes. Schemes introduced by Government on the national trunk road network are likely to have implications for local highway networks, leading to the displacement of traffic which could necessitate complementary measures, including charging, on parallel or alternative routes. For this to be successful, the involvement of local highway authorities should be seen as essential. For purely local schemes the local highway authority should continue to be responsible for developing and implementing schemes that meet local needs and policy aims, whilst for national or regional initiatives, local highway authorities need to be engaged in partnership with central or regional government to ensure local objectives continue to be addressed.

If road pricing is introduced, what factors should determine which roads are priced and what technology should be used? How "hi-tech" does road pricing need to be?

  2.3  The need or otherwise for a sophisticated charging technology is largely governed by the basis on which vehicles are to be charged (by distance travelled, crossing of a cordon or screenline, the use of certain roads, etc.), which is itself a function of the policy objectives of a charging scheme. The central London congestion charging scheme has shown that charging can be carried out on a relatively "low tech" basis, and without the need for on-board equipment, however, the scope for the widespread deployment of the charging structure, and thus the technology, employed so far in London is restricted by a number of practical considerations. Whilst the all day congestion experienced in central London means that a flat rate, all day charge is appropriate, in other locations a more targeted charge, varying perhaps by time of day or direction travelled, may be a more suitable solution. The communications links necessary to operate the central London scheme would present difficulties in using the technology over a very wide area.

  2.4  The Government's work on both Lorry Road User Charging and a national road pricing scheme indicates a preference for distance based charging, which is dependent on the availability of reliable and accurate positioning technology, probably GPS-based. TfL's initial conclusions from the first stage of its own technology trials endorse the Department for Transport's Road Pricing Feasibility Study Steering Group conclusion that such technology, with the accuracy necessary for the purposes of road user charging and at an affordable price, is unlikely to be available before 2014. A European satellite navigation system, Galileo, should be available in 2010, but it is as yet unclear what impact that will have on the performance of GPS receivers in the UK.

  2.5  There are particular issues surrounding the use of GPS in an urban area like London, where the signal can be affected by local topography. Key to the success of any such scheme will be the cost of supplying on board equipment and the retro-fitting of the vehicle fleet. The need for widespread take up of on board equipment is important in achieving value for money, suggesting that a larger scheme is more likely to successfully implement charging using GPS than one covering a smaller area or network of roads.

  2.6  TfL believes that there could be scope for more flexible charging policies before 2014, enabled by tag and beacon technology. Although tag and beacon charging systems have been widely deployed for charging on motorways, their use in urban areas is currently restricted, in part by the need for intrusive roadside equipment and overhead gantries. The conclusions from Stage 1 of TfL's technology trials suggest that a solution that could be acceptable in an urban area is likely to be possible and could deliver a flexibility not available through the camera based system currently employed. The DfT also anticipates that tag-based solutions with "off-board" charging will be more mature and deployable over the next four to five years.

  2.7  It should be noted that any tag and beacon or GPS system will require the use of a camera network for enforcement purposes, and so the proposed investment in an extended camera network for a western extension of the congestion charging zone would be complementary to any future change to the charging technology.

How easy will it be to move from individual toll roads and local urban congestion charging schemes in the short term, to national road pricing in the longer term, and what needs to be done to ensure the transition is a success? How will the Lorry Road User Charge fit into any national road pricing and motorway tolling developments?

  2.8  The European Commission's Draft Directive on the Interoperability of Electronic Road Toll Systems[67] seeks to define the technologies to be used for road charging throughout Europe, focusing on long-term migration to GPS. There are, as discussed, a number of factors that make GPS unsuitable in its current form for widespread road charging. Some of these issues are being addressed by the EC's Electronic Toll Committee but the timetable for resolution may be long and it is unlikely that there will be a substantial population of OBU equipped vehicles in Europe before 2014. This indicates that although some solutions based on mobile positioning may exist, DSRC solutions are likely to dominate in the short to medium term.

  2.9  UK road user charging implementation is currently limited to London, Durham, the M6 toll road and a series of river crossings (eg Dartford, Severn, Forth). The latter use, or plan to use, DSRC tag and beacon solutions. The motorways and expressways of Europe commonly use DSRC microwave detection systems with tags installed in the vehicles. However, they are not all working to the same standard and are thus not interoperable.

  2.10  There are examples of individual road user charging systems which have been implemented and subsequently made interoperable in Spain, Portugal, Norway and France, and the EC's Interoperability Directive provides the beginnings of a framework for pan-European interoperability. There is no reason to believe that the technical and institutional barriers to the integration of road user charging systems are insurmountable. Any national policy framework will, however, need to address the needs of pre-existing charging mechanisms for the purposes of demand management or revenue generation, and allow operators to maintain these benefits. However, this migration from simpler to more advanced technology, as well as more flexible charging policies, could be viewed as a prudent and sensible way to proceed.

  2.11  It is considered that a national charging scheme is unlikely to have its on-board unit technology selected in the next few years. The current camera and ANPR technology used in the central London congestion charging scheme is assumed to have a life until at 2009 and so is unlikely to present a problem for national scheme interoperability. When the scheme is re-procured the design could allow for eventual inclusion of the national scheme technology.

  2.12  It is understood that the Lorry Road User Charge (LRUC) is intended neither as a tool for demand management nor as a specific transport-related revenue stream, but rather as a replacement for the existing taxation mechanisms applied to heavy goods vehicles. If the technology chosen to implement the scheme is sufficiently flexible, as seems likely given the Treasury's aspirations for the charging regime, it is likely to be a crucial stage in the development of a technology which could be more widely deployed in the vehicle fleet. If the technology conforms to standards currently being laid down by the EC Interoperability Directive, and there is sufficient liaison with the Department for Transport, it seems reasonable to assume that there will be no technical barriers to the development or continued operation of other compatible charging schemes. It is, in any case, likely that LRUC will itself be impacted by developments towards an EU-wide charging regime for lorries on the Trans-European Road Network through the amendment of the Eurovignette Directive.[68] That Directive, intended to ensure freight traffic pays its full external costs, already proposes the ability to charge a precept in sensitive areas. It is worth noting that the central London congestion charging scheme as it currently operates would, along with any manually operated toll facility, be unaffected by LRUC.

Are there other measures which could reduce congestion more effectively?

  2.13  Reducing traffic congestion is one of the Mayor's 10 key transport priorities, as set out in the Mayor's Transport Strategy. The Strategy outlines the approach being followed by TfL to reduce congestion and improve traffic conditions. Congestion charging is one element of a broader strategy, which includes:

    —  better management of existing road capacity through the appointment of a Traffic Manager, the co-ordination of streetworks, the effective enforcement of parking and loading restrictions and the use of powers contained in the 2004 Traffic Management Act; and

    —  the encouragement of more sustainable and less congesting modes of travel, including improvements to the quality, availability, accessibility, security and reliability of public transport, as well as measures to encourage walking and cycling.

  TfL is presently working on a strategy for London's roads which will embrace all these activities.

  2.14  Whilst these, and other, policies continue to be an important part of tackling congestion in London, TfL believes that they alone would not produce the level of congestion reduction achieved in the central London congestion charging zone, and the reductions anticipated through a westward extension of the zone.

November 2004










64   The Mayor's Transport Strategy, Greater London Authority, July 2001. Back

65   Impacts Monitoring Second Annual Report, TfL, April 2004. A third annual monitoring report will be available in spring 2005. Back

66   The Mayor's Transport Strategy Revision, Greater London Authority, August 2004. Back

67   Directive 2004/52/EC of the European Parliament and of the Council on the Interoperability of Electronic Road Toll Systems in the Community, April 2004. Back

68   Directive 1999/62/EC of the European Parliament and of the Council on the Charging of Heavy Goods Vehicles for the Use of Certain Infrastructures, June 1999. Back


 
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