London

1
Londons 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
• 2003 February 5 congestion charge introduced
• 2005 July charge increased to 8
• 2007 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
  Mayors 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 Mayors first term (2000 - 2004)

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 16 19 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 (NO2) problem
8
ROCOL scheme, Implemented scheme, Lobby groups
ROCOL proposal Implemented scheme Lobby groups
Area Central London as implemented Central London as implemented
Technology Licence with ANPR enforcement Licence with ANPR enforcement
Charge level 5 for cars/vans 15 for HGVs 5 for all vehicles Retailers Hauliers
Charging hours Weekdays 0700 - 1900 Weekdays 0700 - 1830 Theatres Entertainment lobby
Exemptions Emergency vehicles Disabled plus Taxis Alternative fuel Residents discount Taxi drivers Residents
9
London and congestion charge area


                                                                                                                                                                                                                              


                                                                                                 London Map Series London Metro Map Geographically correct London Urban Railway Map London Highway Map
London Map Series London Metro Map
Geographically correct London Urban Railway Map
London Highway Map
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
15
Perception of effectiveness
16
Concerns about public transport
17
Another tax?
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
Cars vans, goods vehicles Buses Total
Travel time and reliability 260 43 303
Operating costs 28 28
Deterred trips -31 -31
Compliance costs -19 -19
Accidents 14 14
CO2 2 2
Air quality 1 1
Total 255 43 298
BCR of 1.71
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 bus movements up 19,
  passengers up 32
• Cyclists (up 50) 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
• 2000 - 2008
• Introduced congestion chargeand Western
  extension
• Researched feasibility of satellite-based
  London-wide scheme
• Consulted on 25 per day emissions-related charge

• Boris Johnson
• 2008 2012
• 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 2006

• 2004 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 pricingsinister tracking
  of every vehicleunfair taximprove 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 CO2 (g/km) per year
A lt100 0
B 101 120 35
C 121 - 150 120
D 151 - 165 145
E 166 - 185 170
F 186 - 225 210
G gt226 400
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 well as price 14.9p
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 pursuingfor 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

35
ROCOL forecasts and system outturn
ROCOL forecast System outturn
Traffic reduction in central area 12 over 0600 2000 period 15 reduction in all 4 wheel vehicles
PT usage 30,000 trips transfer to PT in am peak period 29,000 more bus passengers
Central area speeds From 15 to 18 km/h in am peak From 14.5 to 17 km/h in charging hours
36
Charges and Penalties

• Normal 8 charge payable up to midnight on day of
  travel
• 10 charge payable by midnight the next day
• Penalty Charge Notice is 120
• 60 if paid within 14 days
• 180 if not paid within 28 days

37
Payment mechanisms