London s Congestion Charge. Introduction to the Scheme and its Principal Impacts
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1 London s Congestion Charge Introduction to the Scheme and its Principal Impacts
2 Introduction Reg Evans Transport economist with Halcrow ROCOL Study (Road Charging Options for London) led Effectiveness Assessment Transport for London Cost benefit assessment published on TfL website Assessment of car travel demand elasticities Work to assess responses to changes in charging scheme
3 Structure of presentation Why congestion charging in London? The scheme Attitudes towards charging Traffic impacts Economic impacts Wider impacts Where congestion charging is going now In London In the UK
4 Political background 1984 Thatcher Government abolished GLC 1997 Labour (Blair) Government elected 1999 GLA Act Elected Mayor in 2000 Charging powers 2000 May - Ken Livingstone elected Mayor 20 February 5 congestion charge introduced 2005 July charge increased to February Western extension area added
5 ROCOL Study 1999 GLA Act Elected Mayor Workplace Parking Levy, Road Charging Revenues for first 10 years to be spent on Mayor s transport strategy ROCOL, 1999: Commissioned by Government Office for London to advise Mayoral candidates on the charging options available to them Had to recommend a scheme that could be implemented in Mayor s first term ( )
6 Before charging 2000: Central London off peak traffic speeds around 9 mph - similar to horse-drawn traffic 100 years earlier Business organisations - London Chamber of Commerce, London First transport their number one concern 95% of year olds improving air quality, reducing traffic and cleaning up the streets at the top of making London a more pleasant place to live 80% of motorists - congestion and air pollution in London very serious Public transport mode share around 90% to central area in am peak
7 Air quality (NO 2 ) problem
8 ROCOL scheme, Implemented scheme, Lobby groups Area Technology ROCOL proposal Implemented scheme Central London as implemented Licence with ANPR enforcement Lobby groups Charge level 5 for cars/vans 5 for all vehicles Retailers 15 for HGVs Hauliers Charging hours Exemptions Weekdays Emergency vehicles Disabled Weekdays plus Taxis Alternative fuel Residents discount Theatres Entertainment lobby Taxi drivers Residents
9 London and congestion charge area
10 Current scheme area
11 Current scheme Main business, retail and entertainment areas in Central London All main rail termini Waterloo, Victoria, Paddington, Euston, Kings Cross, St Pancras within charged area 8 charge per day for driving or parking on public roads within charged area between 0700 and 1800 hours Weekdays only not weekends or public holidays Vehicle owner registers vehicle/agrees to pay for a given day by phone, text, on-line, at retail outlets ANPR enforcement cameras photograph number plates of vehicles entering/leaving and within charged area photographs of registered vehicles deleted, of unregistered vehicles retained
12 Principal exemptions and discounts Exempt licensed taxis and minicabs some specialist vehicles used by emergency services and disabled 100% discount blue badge holders alternative fuel vehicles Residents discount 5 consecutive days driving for 50% of normal daily charge, ie, 4 so resident who drives every day pays 0.80 per day, 90% discount
13 Use made of discounts
14 Attitudes towards congestion charge Figure Support towards congestion charging in Central London 100% Introduction of charging scheme (Feb ) One year after congestion charging (Feb 04) Net support (% %) 50% 0% % -100% Nov/Dec 02 (W1) Jan (W2) Feb (W3) March (W4) April (W5) July (W7) Sept/Oct (W8) March 04 (W10) Base: MORI CCZ Tracker Survey, (W1 = 2,056; W2 = 1,048; W3 = 1,012; W4 = 1,007; W5 = 1,020; W7 = 1,002; W8 = 1,007; W10 = 2,001) 2
15 Perception of effectiveness Figure Effectiveness of congestion charging 100% Introduction of charging scheme (Feb ) One year after congestion charging (Feb 04) Net effective (% %) 50% 0% % -100% Nov/Dec 02 (W1) Jan (W2) Feb (W3) March (W4) April (W5) July (W7) Sept/Oct (W8) March 04 (W10) Base: MORI CCZ Tracker Survey, (W1 = 1,981; W2 = 1,016; W3 = 986; W4 = 1,007; W5 = 1,020; W7 = 1,002; W8 = 1,007) 3
16 Concerns about public transport Figure Will overload public transport 100% Introduction of charging scheme (Feb ) One year after congestion charging (Feb 04) Net agree (%) 50% 0% % -100% Nov/Dec 02 (W1) Jan (W2) Feb (W3) March (W4) April (W5) July (W7) Sept/Oct (W8) March 04 (W10) Base: MORI CCZ Tracker Survey, (W1 = 1,981; W2 = 1,016; W3 = 986; W4 = 1,007; W5 = 1,020; W7 = 1,002; W8 = 1,007; W10 = 2,001) 8
17 Another tax? Figure Just another tax on Londoners 100% Introduction of charging scheme (Feb ) One year after congestion charging (Feb 04) Net agree (%) 50% 0% % -100% Nov/Dec 02 (W1) Jan (W2) Feb (W3) March (W4) April (W5) July (W7) Sept/Oct (W8) March 04 (W10) Base: MORI CCZ Tracker Survey, (W1 = 1,981; W2 = 1,016; W3 = 986; W4 = 1,007; W5 = 1,020; W7 = 1,002; W8 = 1,007; W10 = 2,001) 12
18 Central area traffic reductions
19 Traffic by time of day
20 Western extension traffic reductions
21 Traffic by time of day
22 Central area speed changes
23 Principal economic benefits ( 8 charge) million per year Travel time and reliability Cars vans, goods vehicles Buses Total Operating costs Deterred trips Compliance costs Accidents CO Air quality 1 1 Total BCR of 1.7:1
24 Financial performance FY 2007 million Costs Scheme operation 91 Other / TfL costs 40 Total costs 131 Revenues Charges 195 Enforcement income 73 Total revenues 268 Net revenues 137
25 Who benefits? Transport sector Road users high-value business trips, taxis, other exempt / discounted vehicles Bus users / operators Cyclists and pedestrians Other sectors TfL: No discernible significant effects positive or negative Financial and business services Public services Hotels and restaurants Retail Commercial property
26 London A Tale of Two Mayors Ken Livingstone Introduced congestion charge and Western extension Researched feasibility of satellite-based Londonwide scheme Consulted on 25 per day emissions-related charge Boris Johnson Will withdraw charge from Western Extension zone if current consultation finds against it Will keep central area charge but no interest in expansion
27 Government Policy to around Transport Innovation Fund Large sums of money available for urban transport schemes Direct road pricing measures needed to qualify 12 cities larger and smaller given funding to work up schemes Only Manchester still contemplating direct charging Manchester is having a public vote on its proposals, as Edinburgh did
28 Early 2007: E-petition Downing Street e-petition Abandon idea of road pricing sinister tracking of every vehicle unfair tax improve our roads to reduce congestion February 2007: 1.7 million hits PM response: No decision made about national road pricing Difficult choice about how to tackle increasing congestion Not a stealth tax on motorists Could be a case for moving away from current system of motoring taxation
29 Annual Vehicle Excise Duty VED band CO 2 (g/km) per year A <100 0 B C D E F G > VED generates around 5.5 billion per year
30 Fuel price around 1 per litre Fuel price 34.8p Fuel duty 50.3p VAT 17.5% on duty as 14.9p well as price Fuel duty generates 25 billion per year VAT on petrol / diesel around 7.5 billion
31 Where is charging going? London May reduce charged area No apparent interest in developing the scheme Other cities Only Manchester actively pursuing for now Nationally On back burner Two main political parties silent on the issue
32 London was different High level of congestion Very high level of public transport use Few adversely affected most would benefit PT able to handle transferred car trips No urban competition An elected Mayor
33 What is needed? Time To recover from e-petition To recover from recession Congestion At an unacceptable level Political change Central government to take the lead Acceptance of change to car / fuel taxation Perhaps changed governance of our cities
34 So currently I am not too hopeful Thank you
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