Congestion Charging

Abstract

The principle of congestion charging is well established in economic theory and a variety of application studies have been undertaken in the United Kingdom during the past 50 years. However, the government of Tony Blair elected in 1997 was the first British government to adopt it as a key element of transport policy, anticipating that at least eight local schemes would be in operation by 2010. Despite regular policy statements supporting the principle, Blair's 10 years ended with only one major scheme—London—in operation, with no more likely to be implemented by 2010, and uncertain prospects for national charging. Indeed, the present government of Gordon Brown has now made it clear that although it supports local congestion charging schemes, a decision on a national scheme is “for the future.” This paper seeks to document the main policy statements and swings during the 10 Blair years and to draw some key lessons. Because an early decision of the first Blair government was to devolve responsibility for transport to the newly created Scottish Parliament and the Welsh Assembly, the analysis considers only England—over which the Blair government had direct control—rather than the United Kingdom. It concludes that an unwillingness to create the vision, to provide the information necessary to winning hearts and minds, and to make difficult and potentially unpopular decisions was a key to the failure to live up to bold policy statements.