Speech at the London First road user charging event

Rt Hon. Douglas Alexander, Secretary of State for Transport
Speech at the London First road user charging event.

[Check against delivery]

Ladies and Gentlemen,

I am very pleased to be here today for the launch of London First's report on road user charging in the capital, and to move forward the debate on how road user charging can contribute to a more sustainable, more effective, and more intelligent transport system in the future.

We've learnt so much from the London Congestion Charge: how it's affected traffic flow; how it's affected businesses inside the charging zone; how it's worked alongside other measures to improve transport; how the technology works; how it's best enforced - it truly has been a pioneering scheme. And London First have been an important voice within this debate.

Of course, I welcome your support - 68% of members surveyed - for the principle of road pricing. Over the last month we have seen significant signs of business support for road pricing. A British Chamber of Commerce survey showed 87% of its members are willing to consider road pricing as a solution to congestion. A number of regional chambers have individually come out in support.

The general public are, however, more sceptical. This is why schemes such as London's are so important - they demonstrate, on the ground, the benefits of a scheme.

These lessons are helping to inform our strategy on road pricing.

We have made significant progress in the past year on road pricing. The draft Road Transport Bill announced in the Queen's Speech demonstrates this. In line with the broad thrust of this report, it contains a package of measures to enable local road pricing pilots to be introduced alongside other local transport improvements.

People increasingly recognise that we cannot build our way out of road congestion, and while we need to continue targeting investment in new capacity, we also need to get more out of the existing network. As the report makes clear - London is a prime example here.

If anyone was still in any doubt, Sir Rod Eddington's recent report compellingly set out the challenges ahead.

As the report confirmed, If congestion is left unchecked, it will cost the economy £24 billion by 2025. Eddington was clear that tackling congestion is in the national interest - and road pricing provides us with an excellent opportunity to build a more sustainable transport future for Britain.

And so the Government is determined to build the case for road user charging and to take forward the debate on a national scheme. We are supporting ten areas actively looking into the feasibility of local pilot schemes, and look forward to receiving their proposals next year.

From 2008, the Transport Innovation Fund will provide £200 million of investment each year to help them fight congestion and improve local transport across the country.

I've no doubt that the experience of the past few years in London has helped us generate momentum in the road pricing debate.

But it's equally important to understand that we are still in the early stages of this debate.

Despite the benefits that pricing can bring, and the evidence from London, much of the British public remain to be convinced. For most people, road pricing is still an abstract concept, and - currently - they do not agree that a national scheme is the way forward.

And therefore, we can't be complacent. We need to build discussion steadily and sensibly if we're to properly inform the travelling public.

Of course, London's success - achieved with significant investment in buses and the Underground - is often dismissed as unique.

So we need to be clear on how the London experience relates to other areas - what it can teach them, and what it can't.

We've learnt from London that once a scheme is introduced and people can see the benefits, support grows and opposition falls. This is why our approach to pilot schemes makes sense - building support through experience.

And we've learnt that the Congestion Charge's success has been bolstered by significant improvements in local transport provision - on the buses and Tube.

So I've been looking carefully at what works best in local bus services - so we can help increase bus patronage in other parts of the country. I have today published our proposals - the most radical in 20 years.

We will take a close look at local transport governance in all major cities, to ensure it is transparent, efficient, and fit for purpose - and so local people know what to expect from their transport system in the future.

Our strategy will also ensure that each local scheme is mutually compatible, so motorists can travel between schemes smoothly and efficiently.

Patterns of transport in London - and the transport needs of London in the future - will always be unique.

And therefore it's likely that London will continue to require innovative, ground-breaking solutions to growing transport demand. It's no coincidence that the Congestion Charge has not just been carefully studied by cities throughout Britain, but cities throughout the world.

This is a measure of the leadership that the Mayor and TfL have demonstrated.

The lessons we learn from the local pilot schemes will help show us how a national system of road pricing might work.

London has a crucial role to play in that process. I look forward to working with TfL - and many in this room - to ensure we progress the road pricing debate within London and across the country as a whole.

Thank you very much.

Delivered: 12 December 2006

(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)