Road pricing: an economic 'no brainer' but the politics remain tricky

A report by Sir Rod Eddington on the links between transport and economic productivity in the UK recommended the development of a national road pricing scheme, claiming it would be the most efficient mechanism for getting the maximum use from existing infrastructure. The study used the Department for Transport's national transport model to assess the effects of a national distance-based road pricing scheme in England that priced both congestion and environmental externalities. It suggested that, before considering the costs of setting up and running such a scheme, total benefits could be #28 billion a year in 2025. The level of congestion would fall by 50% although traffic levels would fall by only 7%. The report acknowledged that road pricing would present winners and losers, with car commuters being particularly badly affected. Eddington reported that road pricing could reduce the need to build additional road capacity. He suggests that the Government should take steps to making road pricing a reality.