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 Indeed, the mayor could go futher, promoting a London travel card (or a London travel account – cards could soon be superceded by smart phone accounts) for use on public transport, private cars, car clubs and even cabs and taxis.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.

Photo: Getty
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What Jeremy Corbyn gets right about the single market

Technically, you can be outside the EU but inside the single market. Philosophically, you're still in the EU. 

I’ve been trying to work out what bothers me about the response to Jeremy Corbyn’s interview on the Andrew Marr programme.

What bothers me about Corbyn’s interview is obvious: the use of the phrase “wholesale importation” to describe people coming from Eastern Europe to the United Kingdom makes them sound like boxes of sugar rather than people. Adding to that, by suggesting that this “importation” had “destroy[ed] conditions”, rather than laying the blame on Britain’s under-enforced and under-regulated labour market, his words were more appropriate to a politician who believes that immigrants are objects to be scapegoated, not people to be served. (Though perhaps that is appropriate for the leader of the Labour Party if recent history is any guide.)

But I’m bothered, too, by the reaction to another part of his interview, in which the Labour leader said that Britain must leave the single market as it leaves the European Union. The response to this, which is technically correct, has been to attack Corbyn as Liechtenstein, Switzerland, Norway and Iceland are members of the single market but not the European Union.

In my view, leaving the single market will make Britain poorer in the short and long term, will immediately render much of Labour’s 2017 manifesto moot and will, in the long run, be a far bigger victory for right-wing politics than any mere election. Corbyn’s view, that the benefits of freeing a British government from the rules of the single market will outweigh the costs, doesn’t seem very likely to me. So why do I feel so uneasy about the claim that you can be a member of the single market and not the European Union?

I think it’s because the difficult truth is that these countries are, de facto, in the European Union in any meaningful sense. By any estimation, the three pillars of Britain’s “Out” vote were, firstly, control over Britain’s borders, aka the end of the free movement of people, secondly, more money for the public realm aka £350m a week for the NHS, and thirdly control over Britain’s own laws. It’s hard to see how, if the United Kingdom continues to be subject to the free movement of people, continues to pay large sums towards the European Union, and continues to have its laws set elsewhere, we have “honoured the referendum result”.

None of which changes my view that leaving the single market would be a catastrophe for the United Kingdom. But retaining Britain’s single market membership starts with making the argument for single market membership, not hiding behind rhetorical tricks about whether or not single market membership was on the ballot last June, when it quite clearly was. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.