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Breaking the Logjam
Estimates of the costs to business of road traffic congestion vary, but amount to several billion pounds a year. It has been estimated that some 1.6 billion hours are lost by those travelling on Britain´s roads due to congestion. So how does the Government plan to break the logjam?
A recent report in The Times suggested that hard hit businesses in central London blame their problems not so much on the new congestion charge introduced in February this year but on a host of other factors such as the threat of terrorism, the war in Iraq, not to mention the closure of the Central Line.
Nonetheless, the congestion charges are having an impact on general transport patterns in the capital. Recent figures announced by Derek Turner, Head of Congestion Charging at Transport for London (TfL), suggest that traffic inside the zone is running at 17 percent below its previous level and that buses are travelling 15% quicker. Trafficmaster, the congestion-monitoring company, said that despite this, journey times have increased on 9 of 12 key routes into the capital. This may be linked to a 5% increase in traffic on roads which border with the zone.
The scheme may not be perfect but it has been heralded a success in the main. It seems that many cities outside the UK are clamouring to introduce similar schemes. So much so that Derek Turner is leaving TfL to set up his own consultancy to advise authorities around the world on congestion charging! |
What future for our other towns and cities?
The Government´s answer to congestion problems is contained in The Transport Act 2000 and subsequent Regulations. Local Authorities now have the power to introduce road user charging similar to the London scheme or a workplace parking levy as an alternative. They have the flexibility to provide exemptions from their schemes as they see fit. They are not obliged to introduce either of these schemes; the aim being to tackle traffic congestion and pollution on a local level in an effective and equitable manner. Costs and benefits of charging or levy schemes will be determined locally, in the light of local circumstances, as each scheme develops.
Other additional key provisions include:
1. The Secretary of State will be able to introduce charges on trunk roads complimentary to a local authority charging scheme at the request of local authorities only.
2. The Secretary of State will also be able to introduce charges on trunk road bridges and tunnels of at least 600 metres in length.
During the Government´s consultation exercise, 24 local authorities expressed an interest in taking up or exploring the use of the new powers and a further 11 authorities indicated in their full Local Town Plans that they were considering using charging as a solution to local transport problems. Bristol, Edinburgh and Nottingham have drawn up plans but none is likely to be running before 2005.
The success of the London scheme will no doubt add fuel to the fire. To kick start schemes outside the capital the Government is offering an incentive. Those local authorities introducing a charging or levy scheme within ten years of the legislation, will be guaranteed at least ten years retention of the net revenue stream for spending on their local transport initiatives. And here we are talking big money.
Leeds has predicted that net revenues from a road user charging scheme in the city could be in the region of £25 million a year, with set up costs of £8.2 million and annual operating costs of £7 million. Nottingham predicts an annual income range of between £4 million and £14 million net from a workplace parking levy scheme, depending on the size of the levy, with an annual implementation cost of £1.2 million. |
Road User Charging (RUC)
Employers are no doubt aware of the main features of the RUC operating in London. In brief, Ken Livingstone chose an "area-based" scheme creating a charging zone with a flat fee for entry of £5.00 to anyone entering the zone. There are alternatives to this and local authorities can opt for a "distance-based" model (a series of charging points along a road where drivers pay based on the distance they travel) or a "paper based" scheme (drivers purchase a season permit) or electronic-based tolling where drivers cross controlled charging areas.
Research to date confirms that in the long-term RUC will have a more significant impact on reducing the number of cars within city and town centres and is a better long term money generator. However, in the short to medium term the initial costs to implement the schemes (especially investment in the technology needed) may persuade councils to opt for the alternative parking levy which promises quicker profits for them. |
The Workplace Parking Levy (WPL)
The WPL is aimed at commuters and seeks to reduce the availability of free workplace car parking. Thus, the responsibility of solving congestion problems will be shared by local employers. The proposal is that the levy should apply to all parking where parking provision is predominantly for use by those at their workplace (this will include offices, factories, warehouses and educational establishments) and parking for employees at buildings where workplace parking is a minority of total on-site parking (this will include parking at retail outlets, leisure centres, hospitals etc).
The Government favours a licence fee for the implementation of the WPL payable by employers. Licences will state the maximum number of motor vehicles which can be parked by workers at the premises at any one time. In Nottingham, the plan is to levy £150.00 per parking space per year (70p per day) rising to £350.00 per year in 10 years time. It will be up to employers to decide whether or not to pass this cost on to employees.
Fleet vehicles are excluded from the WPL (e.g. buses, postal delivery vehicles parked at a base depot). The Government is suggesting that there are compelling arguments in favour of exempting the first few parking spaces at each building. This would have the effect of removing small businesses from the burden of the levy. The Government is also exploring an exemption for people with disabilities and there´s suggestion of a blue badge scheme. |
National Distance-Charging Scheme (NDCS)
This is high on the Governments agenda and initially the plan is to charge only in relation to lorries. A policy statement from the European Union on road charging is expected soon and it is envisaged that a NDCS for all vehicles could be up and running within the next 10-20 years. |
You can have your say
You can have your say in your local area. Those Local Authorities considering a congestion policy will undertake a detailed consultation exercise. Your views can be influential. In Nottingham for instance, the business community is opposed to the planned WPL and as a result the jury is still out at the Council as to whether they will opt for RUC or the WPL.
If you would like any more information about this, or related employment matters, please do not hesitate to contact Adrian Berkeley at Berkeley Solicitors, 100-102 Market Street, Droylsden, Manchester M43 6DE. Telephone - 0161 371 0011
April 2003
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