An idea for the new mayor: pay-as-you-go roads

The new mayor, whoever they are, should start charging drivers based on how much they drive, not sim

London is an increasingly congested city, and with the population expected to continue to grow by as much as 2 million over the next twenty years, congestion is only likely to get worse, with negative consequences for liveability, air quality, carbon emissions, and economic competitiveness.

One policy however could make a substantial contribution to reducing congestion on London’s roads: pay-as-you-go congestion charging (road pricing). Though the case for congestion charging has been more popular on the left than the right, it is founded on good market principles – one of the first people to argue for it was the Chicago-school economist Milton Friedman. Road pricing is simply an economically efficient way of allocating an increasingly scarce resource (road space). For that reason, the theoretical case for road pricing is now accepted by most economists and the policy is supported by a wide array of business organisations.

Smart technologies are making road pricing ever less costly. And it should not be difficult to design a scheme for London which actually reduces the costs of using a car for some car owners – those that use a car infrequently, or on non-congested roads.  

One simple idea might be for the Mayor to refund to all car owners the cost of their annual vehicle tax, while introducing road pricing at the same time, perhaps paid for via the Oyster Card. Those that make little use of their cars could well find themselves better of at the end of the year than currently.

Similarly, discounts could be offered on less polluting, greener vehicles. Integrating congestion charging with the Oyster Card would allow people to make a direct calculation as to the costs and benefits of using the car versus other means of transport. Indeed, the mayor could go futher, promoting a London travel card (or a London travel account – cards could soon be superceded by smart phone accounts) for use on public transport, private cars, car clubs and even cabs and taxis.

The principle that we should pay more to travel at busier than quiet times, or more popular than less popular routes is already well established - notably on the railways. While the Congestion Zone covers less than 2 per cent of London's roads, it has been widely accepted, and demonstrated that road charging can be effective. And while congestion charging schemes have been rejected in referendums held in Edinburgh and Manchester they have passed the test of public opinion in other cities like Stockholm. The key seems to be to introduce the scheme first and once it is established and it has been tried and tested by the public, only then hold a vote on whether to remove it.

A Taxi enters the congestion charging zone. Photograph: Getty Images

Ben Rogers is the director of the Centre for London think tank, and the author of 10 Ideas for the New Mayor.

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PMQs review: Jeremy Corbyn turns "the nasty party" back on Theresa May

The Labour leader exploited Conservative splits over disability benefits.

It didn't take long for Theresa May to herald the Conservatives' Copeland by-election victory at PMQs (and one couldn't blame her). But Jeremy Corbyn swiftly brought her down to earth. The Labour leader denounced the government for "sneaking out" its decision to overrule a court judgement calling for Personal Independence Payments (PIPs) to be extended to those with severe mental health problems.

Rather than merely expressing his own outrage, Corbyn drew on that of others. He smartly quoted Tory backbencher Heidi Allen, one of the tax credit rebels, who has called on May to "think agan" and "honour" the court's rulings. The Prime Minister protested that the government was merely returning PIPs to their "original intention" and was already spending more than ever on those with mental health conditions. But Corbyn had more ammunition, denouncing Conservative policy chair George Freeman for his suggestion that those "taking pills" for anxiety aren't "really disabled". After May branded Labour "the nasty party" in her conference speech, Corbyn suggested that the Tories were once again worthy of her epithet.

May emphasised that Freeman had apologised and, as so often, warned that the "extra support" promised by Labour would be impossible without the "strong economy" guaranteed by the Conservatives. "The one thing we know about Labour is that they would bankrupt Britain," she declared. Unlike on previous occasions, Corbyn had a ready riposte, reminding the Tories that they had increased the national debt by more than every previous Labour government.

But May saved her jibe of choice for the end, recalling shadow cabinet minister Cat Smith's assertion that the Copeland result was an "incredible achivement" for her party. "I think that word actually sums up the Right Honourable Gentleman's leadership. In-cred-ible," May concluded, with a rather surreal Thatcher-esque flourish.

Yet many economists and EU experts say the same of her Brexit plan. Having repeatedly hailed the UK's "strong economy" (which has so far proved resilient), May had better hope that single market withdrawal does not wreck it. But on Brexit, as on disability benefits, it is Conservative rebels, not Corbyn, who will determine her fate.

George Eaton is political editor of the New Statesman.