Could Road Privatisation Be A Step Towards More Widespread Road Pricing In The Future?

Tom Henderson, Senior Associate in the Government & Infrastructure department of Bircham Dyson Bell LLP believes that recent Government moves to explore road privatisation might be a first step towards the introduction of more widespread road charging.

"The strategic road network is in need of new investment to alleviate congestion at key pinch points and improve standards of maintenance and clearly public finance is in short supply," explains Tom.

"For that reason the proposals are to be welcomed, though the devil will be in the detail. History suggests that the privatisation of key infrastructure has not been without its problems, and it will require a strong regulator to ensure that the public interest is protected.

"The Government has stated that new infrastructure may be tolled, but given that all evidence suggests tolls are a vote loser, it has been careful to distinguish this from the existing network.

"So on the face of it widespread road tolling seems a long way off. However, most economists would argue that the basic principle of road pricing stacks up. To address issues of fairness, road pricing could be offset by changes to other road taxes, and the technology is sophisticated enough to differentiate pricing according to the time and route travelled.

"In my view road pricing is desirable and in any event inevitable, as congestion worsens and alternative fuels become widespread in use. The Government has ducked the issue of widespread road pricing for now, but it will have to return to it. Perhaps the rolling out of road pricing for selected new routes and lanes will be a first step in the process, by bringing sophisticated road pricing technology into everyday use, and exposing motorists to the principle on a wider basis."

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