Should we install road pricing?

The UK Transport Act 2000 gave local traffic authorities powers to introduce road pricing with an assurance that for at least ten years they will be allowed to keep the proceeds for investment in public transport or other local transport projects. It is possible that only a few local authorities will take up the offer but many more will wish to carry out studies of the possibilities before coming to a conclusion. For many authorities the decision will be affected by what alternative sources of finance are available. Decisions could be reviewed; perhaps most authorities will come to the conclusion ‘not now but maybe in future’. They may wish to study the possibilities now so that if and when the time is right, they will be able to recognise it. This paper sets out the main issues affecting a decision and the criteria for developing policies towards road pricing. The paper also draws a distinction between compulsory or negative road pricing as a means of restricting road traffic and optional or positive road pricing as a means of improving the use of road space and in particular, securing bus priority in the right locations.