As a nation, we love cars – and our politicians know it. The surge in incomes following World War 2 saw car ownership rise by 250% in the 1950s. New towns such as Milton Keynes were built on the premise of mass car ownership. In the eighties Margaret Thatcher embraced what she called “the great car economy”, while allegedly ridiculing bus users as failures in life.
Even New Labour, not known for being the most motorist-friendly government, courted the affection of Mondeo Man. Plans by Labour to introduce more toll routes and per-mile road charges were shelved as survey research and online petitions showed widespread public opposition.
The current crop of politicians is no different. Since 2011, road fuel duty has been frozen in a bid to charm the 80% of us – author included – that have access to a car.
Cars have brought unrivalled convenience to our lives, often enabling us to get from A to B far more rapidly than other means of transport. And with public transport in the UK expensive and unreliable, it is still often the best way of getting around despite rising congestion.
Yet our love affair with the car is environmentally damaging. Transport is the biggest source of air and noise pollution in the UK. Road transport is responsible for 22% of UK emissions of carbon dioxide and regular traffic noise blights many neighbourhoods.
While electric vehicles offer the prospect of reduced car-related air pollution, there remains the problem of congestion on our roads. With the population set to continue growing, more cars means more traffic jams and slower journey times. Thatcher’s great car economy is turning into a great car headache for politicians and policymakers, who know that they need to curtail vehicle usage while keeping voters on board.
What should be done? A new Social Market Foundation report out today advocates the introduction of a system of dynamic road pricing across the UK. Under the scheme, motorists would pay a per-mile charge for car journeys, with this price varying according to the time of the day and location. Using data from telematic “black boxes” installed in cars, as well as smartphones, road prices would be set at higher levels during the rush hour and in areas where air pollution is particularly problematic. By encouraging motorists to change routes and the times at which they travel, road pricing can tackle pollution and congestion. Some drivers might even be compelled to get on their bikes or walk instead of driving.
In the report we argue that road pricing can and should be rolled out in a fair way, that protects those on lower incomes. We advocate a free allowance of road usage each year, focusing the burden of road pricing on higher income households who on average travel greater distances by car.
While previous plans for road pricing were abandoned due to political unpopularity, public acceptance is likely to be greater now. The environment has surged up the political agenda in the UK, with the YouGov Top Issues Tracker showing the environment more likely to be reported as a top issue among voters than education, housing and pensions. Politicians should embrace this shift in public sentiment by tackling green issues head-on.
Over the coming years, a shift to electric vehicles will bring an end to government revenues from road fuel duty, which the Office for Budget Responsibility expects to bring in £28bn in the current fiscal year. This money will have to come from somewhere, making a system of road pricing look inevitable. The key question for government is not whether to introduce road pricing, but how to roll it out in a way that is effective, popular and, importantly, fair.
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