New Ways to Fund Infrastructure Investment Needed

New ways to fund large infrastructure projects such as Crossrail, are proposed in a study published today by the Institute of Economic Affairs*.

So far, Crossrail and many other similar projects have floundered because the large sums of money required have not been forthcoming from government and there is a reluctance to pass the full costs to users of the services.

The study, edited by Fred Harrison**, suggests that there is a significant cumulative shortfall in infrastructure investment which some believe could be up to £70bn – much of this relates to transport infrastructure. However, this shortfall should not funded through increased taxes.

User charges on roads and rail fares at levels that ensure that passengers and freight users pay the economic costs of their journeys would generate revenue of £24bn per year. User charges