Congestion charging beats gridlock

London Briefing: The success of Ken Livingstone's traffic congestion charge has been evident for some time

London Briefing: The success of Ken Livingstone's traffic congestion charge has been evident for some time. While some may dispute the accuracy of the statistics produced by Transport for London, it is clear to any casual observer of the city's traffic that something dramatic has taken place. Traffic is down by around 15 per cent and congestion has been reduced by 30 per cent.

Nevertheless, the congestion charge remains a political hot potato; there is still a significant number of Londoners bitterly opposed, but I suspect their numbers are dwindling as the success of the scheme becomes even more apparent. One Londoner who appears to be a huge fan of congestion charging is Tony Blair. So popular is the idea in government circles that plans are emerging for a much more complex nationwide scheme. While a comprehensive UK-wide congestion charge is unlikely before 2014 - technological considerations dictate a long lead time - we should expect to see more local authorities introduce their own schemes.

For once, we should congratulate New Labour for its strategic vision and its recognition that the only real solution to Britain's gridlocked roads is a resort to a pricing mechanism. While London's congestion charge is a flat £5 sterling during set times, the government is proposing to introduce price plans that will have a sliding scale of charges. The more you use your vehicle at peak times and the more you choose to drive on the most congested roads, the more you will pay. All very sensible - and it will work.

Evidence from the London experiment shows that many journeys by car are either unnecessary or can easily be switched to public transport. A more sophisticated scheme will mean that rural areas will be hit the least while the south-east of England, which resembles nothing less than a giant car-park these days, will get some relief from often impossible driving conditions.

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The success of London's congestion charge seems to have persuaded the government to go for a national scheme. And Mr Blair seems well able to head off criticism from the motoring lobby with the suggestion that the new charge should be "revenue neutral", meaning extra funds could go to cutting petrol tax. This is truly radical stuff, with all sorts of implications. Any readers of The Irish Times willing to bet that all of these plans are likely to come to fruition should consider buying up petrol stations just over the border in Northern Ireland; the possible falls in UK petrol prices will mean that patterns in cross-border trade (and smuggling) will once again radically change.

Between now and 2014 we can expect the government, for as long as it's in office, to encourage other local authorities to introduce schemes. That way, more people will be softened up for the national scheme.

This uncharacteristically sensible piece of forward thinking should be welcomed and encouraged. Britain has the worst road congestion in Europe. Much of the south of the country will simply grind to a permanent halt if anything like this increase occurs. Now, if only the people who dreamed up these brilliant plans could be persuaded to turn their undoubted talents towards solving the crisis in public transport. Ken Livingstone supplied a sharp increase in buses to allow people to switch from their cars. Somebody is going to have to come up with something equivalent on a national scale.

Chris Johns

Chris Johns

Chris Johns, a contributor to The Irish Times, writes about finance and the economy