The government has outlined plans to allow road pricing on new infrastructure. They should go further and denationalise the entire road network.
Privatising Britain’s road network would raise more than £150bn. This could be used to phase out motoring taxes. It would not only deliver a better road network for Britain’s drivers, but would also cost motorists less than the current system.
The growing number of successful privately built and operated roads around the world – often in developing countries – also strengthens the case for ending state control.
Britain’s road network is poor
· Across the world, state-owned roads are characterised by endemic congestion, high accident rates, poor maintenance and wasteful investment. The estimated cost of congestion in the UK alone is £20bn a year. Adjusting for traffic levels, Britain has a far smaller motorway network that most other major economies.
· The government is biased towards public transport over road investment, and cost-benefit analyses are often ignored. Road schemes have been cancelled with benefit-cost ratios three times higher than High Speed 2.
A privatised road network would be cheaper and faster for motorists
Allowing private owners to negotiate routes, set toll rates, control access and determine rules for users would:
1. Ensure more efficient use of existing capacity
2. Provide more efficient investment in new capacity
3. Allocate traffic flows more efficiently
4. Smooth traffic jams
5. Reduce the number of road accidents and fatalities
6. Allow innovations such as higher speed limits and heavier lorries
Road users would pay less under a privatised road network than they do at the moment and would have a better quality network. For example, tolls for cars could be as little as 6p per mile on a brand new motorway. For most cars, this would be less than the fuel duty currently paid. Charges for using existing parts of the network would generally be even cheaper than this.
A plan to privatise
· Denationalising the road network would involve phasing out taxes applied specifically to the road sector, such as fuel duty and Vehicle Excise Duty (road tax).
· The reform of transport taxation could be part funded by transfer of new road construction to the private sector, thereby reducing government spending on the road network. New infrastructure could be funded by tolls, property development, or some combination of the two.
· The privatisation of the network of strategic roads alone could yield about £150bn if motoring taxes were cut and pricing introduced. The revenues raised from the sale