Road Pricing in the UK & Globally

HideShow resource information
  • Created by: TessAni
  • Created on: 20-01-13 12:06

Opinion of Road Pricing

Last few years there has been growing consensus that this is the only realistic longer-term solution to road congestion. It also has support from a number of pressure groups and think tanks - Institute of Economic Affairs. 

2005 'Pay as you Drive' system - to be fully implemented by 2015: 

  • a charge of £1.30 for using the busiest roads at peak time
  • lower charges of 2p in rural (and in some no change at all) 
  • 'Tax neutral'; replacing the current road taxation system with only around 15-20% paying more than usual 

The governnment allocated £2.25m for local trials. 

Confirmation that road pricing could reduce road congestion folliowed in the Eddington Report, 2006 - it said congestion could fall by as much as 20% by 2025. 

1 of 3

Public Opinion

However, it was unpopular amongst the people - 2007 1.8 million signed a petition against it and the media added weight to these protests. By October 2007 the plans were effectively abandoned. 

  • GPS tracking was seen as an invasion of privacy 
  • Politically unacceptable to the millions of motorists who believe they are already being charged too highly to use the country's roads 
2 of 3


1998 installed a sophisticated electronic road pricing (ERP) system. All cars fitted with an electronic box on the dashboard which monitors movement and deducts money automatically. 

The impact has been significant: 

  • 16% fall in peak traffic; 10-15% elsewhere 
  • reduction in the number of multiple trips in charged zones
  • improved vehicle speeds
  • greater traffic volumes in the morning prior to charging start
  • road traffic levels have remained reduced since the launch year 
3 of 3


No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Globalisation and trade resources »