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MSPs to ask for tax breaks in return for road charges

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Published Date: 02 December 2006
SCOTTISH ministers will next week challenge the Treasury to promise tax cuts to compensate rural Scots for the introduction of road charges of up to £1.20 a mile.
The prospect of drivers paying for every journey came a step closer yesterday with a Treasury-backed report which concluded the only way to cut traffic congestion is to price some people off the roads.

Sir Rod Eddington, the former British Airway
s chief executive who wrote the report, said that building more roads is simply not viable, meaning motorists must be encouraged to drive less. "The UK cannot build itself out of current road congestion," Sir Rod said. "For me, in the end, road pricing is an economic no-brainer."

His report made no firm recommendation about how and how much drivers should pay, but suggested a maximum charge of £1.20 per mile to travel on urban roads at their busiest.

"Ask yourself: do you in 20 years' time want to waste up to four more working days of your life each year sitting in congested peak traffic in UK's largest cities?" Sir Rod said. "Or are you prepared to change your travel patterns, and pay a full, but reasonable price to reflect environmental impacts, and benefits in terms of improved speed and reliability of your car journey?"

Ministers in London and Edinburgh have already signalled their backing for a road charging scheme when technology allows, and Sir Rod's report, commissioned by Gordon Brown, the Chancellor, has only reinforced that determination.

While the Executive would have the final say on any charges levied to drive on roads north of the Border, Westminster and Holyrood are in agreement that any charging system must apply across the UK to be viable.

Publishing its own 20-year transport strategy on Tuesday, the Executive will confirm its willingness to participate in a road-charging scheme.

However, that backing would be dependent on the Treasury agreeing to cut road tax or fuel duty to offset the costs of the charging scheme.

"The transport minister [Tavish Scott] is in favour of the introduction of road-user charging as a way of combating congestion, but for this to work it would have to be done as part of a UK approach involving the restructuring of motoring taxation," said an Executive spokesman.

In particular, it is understood that the Executive is concerned that a charging scheme could penalise rural Scots, who often have no alternative to cars.

Ministers may therefore argue that people living in rural areas should be given even larger tax breaks by the Treasury.

Cutting congestion is part of Sir Rod's plans to improve the "economic connectivity" of the UK transport network. He concluded that government transport policy should focus on freeing up key "pinch points", improving connections to ports and airports and easing major inter-city routes, rail and road.

And as Jack McConnell, the First Minister, yesterday officially opened the £19 million terminal extension at Edinburgh airport, Sir Rod also gave strong support for plans to expand UK airports. Failing to build new runways would cost business £6 billion, the report said.

Aviation policy is reserved to Westminster, and Sir Rod backed the 2003 white paper, which said that if central Scotland is to have a new runway, it should be built at Edinburgh.

Green groups have said air travel should be curbed to cut greenhouse gas emissions. Sir Rod said that the wider gains to be made from flying more could justify the environmental cost.

"Provided economic analysis shows that there is a net benefit from increased airport capacity, even once users pay the full environmental costs of their journeys, there will remain a strong economic case for additional runway capacity," Sir Rod said.

SPEED LINK STILL BACKED

BUSINESS leaders yesterday vowed to press on with the argument for a high-speed rail link between Scotland and southern England, even after the Eddington Report effectively dismissed the proposal.

As expected, Sir Rod Eddington advised that the government should not build any major new networks, focusing instead on freeing up existing routes.

While the former British Airways boss acknowledged that many business leaders believe a high-speed train could replace many air journeys to and from Scotland, he said: "The evidence is very quiet on the scale of resulting economic benefit."

But Graham Birse, of Edinburgh Chamber of Commerce, insisted that "large-scale investments necessary to bring such a scheme into being have to be considered".



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1

mv,

02/12/2006 01:25:12

"a Treasury-backed report which concluded the only way to cut traffic congestion is to price some people off the roads. "

Note the words "Treasury backed", not transport or environment, its all about raising more and more TAXES. Plus the small tracking device fitted to every car to allow some spying and maybe some speeding fines thrown in!

2

Paul Halliday,

Newport, Wales 02/12/2006 02:24:34

I see another poll tax revolt comming on. This is an outrage

3

The Ghost of Sir William Arrol,

The Forth Bridge 02/12/2006 03:20:57

Scotrail and GNER eat your heart out, this is not for the likes of us (apparently)

http://video.google.co.uk/videoplay?docid=-45482448858675...


We'll continue to chug our way from Edinburgh to Glasgow or other points north and south in a much more genteel and sedate way like the Victorians. Even slower after EARL is operating!

Oh for some politicians that have real ambition and get things done. The best wee politicians in the world, indeed!

4

Helene Davidson,

London 02/12/2006 04:14:58

Having moved from Fife to London some time ago, I have had a chance to wittness the impact of the congestion charge. From this driver's perspective, the answer is "not a lot". Initial improvements were soon eradicated (not least because the charge is tolerable when set against the nightmare of commuting on over-crowded and unreliable tube trains and, in the summer, via buses which are slow and un-airconditioned [as well as polluting]).

Road pricing is regressive, hitting those who must commute by car or who need a car because of limited public transport facilities. We are not all mad anti-environmentalists. Nor do I advocate we should pave over the country with roads. But to avoid investing in transport infrastructure is the politics of the economically illiterate. Last week I was queueing behind two American City types who were discussing London's appalling transport network, and how they couldn't wait to be posted back to NY. My partner has had many disappointing trips by rail from Edinburgh to London at prices that make our summer airfares look cheap. None of this makes sense, or rather makes as much sense as asking an Airline chief now resident in Australia to recommend alternatives to the form of transport he is, no doubt, heavily invested in.

Whatever happened to our integrated transport policy???

5

Helene Davidson,

London 02/12/2006 04:23:17

Forgot to add my total agreement with Paul Halliday. Looking at this together with the equally brilliant proposals on council tax in N. Ireland, ID cards, the NHS IT fiasco etc etc I am beginning to wonder whether Broon had realised the game is coming to an end and is introducing policies to ensure electoral defeat in May and beyond. That way, he neither has to face nor address the ballooning levels of public sector debt (especially if forced to properly accouint for PPP liabilities as well as public sector pension shortfalls), remedy the more significant policy failures imposed by the treasury, nor deal with a restive bureaucracy whose pensions must be curbed for our economic survival. I know this is cynica,l but something about the last years has made a cynical carapace essential to survival.

6

Ubi,

Edinburgh 02/12/2006 09:18:42

Tax breaks ! Give us our own back ? We should bow low for such small generosities.

The long suffering motorist must surely be the most disenfranchised cash cow in the UK economy. This group is annually relieved of tens of billions of pounds by the government without having even a single seat in the Commons to represent its interests.

The greed of the ruthless UK government has cost it useful assets in the past. They would do well to learn: No taxation without representation.

7

Steve,

02/12/2006 09:53:07

This article was written with no reference to the Labour government. It's about time we got shot of this LABOUR/LIB DEM executive, as this is an absolute outrage. Where has our massive road tax, petrol duty and Forth Bridge toll money been going all these years?

8

JJ52,

02/12/2006 10:42:34

So there you have it, The rich will drive, and everyone else will have to walk. Back to medieval times when lords had horses and the peasants had nothing.

9

scottwebb.co.uk,

02/12/2006 10:52:27

The MSPs are as bought and paid for as the rest of them....the agenda continues.........AGENDA 21

10

Scott_B,

02/12/2006 11:08:49

"Price some people off the roads" - why must the amount of free movement be defined by money?

First of all we do this anyway via fuel duty - if this is the answer, then raise the fuel duty.

Secondly, if we really want to reduce the numbers, there must be an alternative (or we can't get to work to pay for these wondrous politicians), and the reduction should be set fairly. Not "one pound one vote", but "one person one vote" - we're a democracy of people, supposedly, not of money.

So set an allocation, say at the national average, and you can drive until you've reached your allocation. After that if you still want to drive you need to buy someone else's allocation. This still gives full choice, but avoids the regressive tax of what is proposed.

However, the first position is to say no to this ridiculous idea. When I've been in Japan I have never wanted to drive, because the public transport is so affordable, clean, reliable and efficient. Here, we get too small, too infrequent trains, given seemingly unaccountably to a monopoly, who provide nothing other than above inflation prices rises.

These people have no idea other than "more tax".

11

The Strategist,

02/12/2006 11:50:41

I've been looking at this whole issue of taxes on carbon emissions and now road charging for a while and comparing this sort of move with what's going in respect of oil supply and in the UK in particular what's happening in respect of the fall off in N Sea production and the rise in imports.

Gordon Brown has one sodding great problem looming up on him..... Not only are petroleum tax revenues going to fall but the balance of payments on goods could soar to well over £100bn as we will be importing 80% or more of our oil/gas by around 2017 or so....

Somehow he has to make up these deficits and the conclusion is that motorists and industry are the ones going to be doing that.

Starting ten years ago Govt should have increased investment in both alternative energy technology and particularly alternative liquid fuels.... And, at the same time changing the planning rules to prevent the rundown in city centre living space and the build up in metropolitan area commercial space. Spreading commercial development around would have had a big impact.

The Govt should also have been working on the BTs of this world to install much higher bandwidth networks so people could have the choice of working fae hame or some local shared office...... Govt should actually bring in legislation to force companies that can to do this......

They're a visionless, short termist bunch of prats.... If they'd harnessed our engineering and techy capabilities when they should have we wouldn't have this problem...

I do not see why we should have to pay for their incompetence and lack of strategic thinking.

What's more, it all blows one huge hole in the Metropolitanisation Strategy dreamt up by those numpties at Scottish Enterprise.

We need a very serious and radical rethink on how to deal with the congestion issue and taxing people is not the answer.

12

Edward,

02/12/2006 11:56:16

This is typical of labour, applying something for the whole of the UK, when London is NOT responsible for transport in Scotland. Transport is a devolved department, obviously this little fact didnt appear in there PR / spin meisters thinking
Scotland has to get rid of Labour as it is taking the p**s out of Scotland, by ignoring it, apart from when they want to be voted back in.
Another disgrace is there stand on winter fuel allowances for pensioners (there great at trying to scare pensioners about loosing contact with family in england in the event that Scotland becomes independant) Again they couldnt care a monkeys, the fact is Pensioners in the South of England arent that bothered about the Winter Fuel allowance, as the trigger for providing it rarely happens, due to it being a lot milder than Scotland. So the majority of pensioners that are effected are in Scotland,where it is colder for a longer period of time in winter, so need the winter fuel allowance. If Scotland was independent, at least a Scottish government would look after its own

13

Shireman,

Kilspindie 02/12/2006 13:06:21

All good points here today. Commitment to helping the environment first and foremost is the only thing missing from the latest tax proposals. How does charging more help either congestion or the air we breathe? How does expanding airports and air travel help? It all just seems like an easy way to screw more cash out of those with no choice but to pay. 20 years ago, prior to privatisation, the daily 1 o'clock train from Kings Cross to Aberdeen was always hopelessly overcrowded, with many passengers forced to stand all the way to York, and in some extreme cases Edinburgh! At the same time the 2 first class coaches sailed on with only about 10% of the seats occupied, and theres no way you can sit there without paying the 1st class fare. 20 years on and the situation is exactly the same, daily overcrowding, empty carriages, and most amazingly of all, virtually no change to the timetables. So, despite huge public subsidies, and the privatisation of the operators, the only improvement has been to the bank balances of Stagecoach, First Group and Virgin. Or to put it another way, the entire excercise was little more than window dressing. If we are going to get the excess vehicles off the road, we need fast, frequent and cheap rail services just like in France and Japan where the state-owned networks know they cant make a profit, but where they also appreciate that profit aint gonna save the world. Sometimes governments just have to invest tax pounds for the benefit of everyone, and not just the select few.

14

rab, glasgow,

02/12/2006 17:34:27

Ban the green tree hugging hypocrites.

15

David Harrington,

Edinburgh 02/12/2006 22:29:06

#3 Sure, the Dutch now have a high speed line, but the rest of their services are slower than the average British journey - certainly the E&G shuttle which you berate.
#4 OK, you might know of people who have bad and expensive rail journeys between Edinburgh to London, but I've had lots of excellent and cheap ones on both GNER and Scotrail, so perhaps it's not as bad as you think.
Also, if you think that the initial improvement in congestion was not sustained, then why does every report since then not show any evidence of this?
#13 The Japanese rail network is good, but please don't wish the French network on us - outside of TGV routes it is stuck in the past with infrequent services often served by old and uncomfortable rolling stock. The Swiss network is much better - funny how they aren't getting too bothered about high speed routes.

16

,

02/12/2006 23:01:01
Comment Removed By Administrator
Reason:
17

Davy,

03/12/2006 14:40:13

13. Shireman, Kilspindie
Very well written.
In Holland the rail network they have is second to none, also very inexpensive.
Every small town and village has a rail station and they run on time and are regular.
I have an old map in my house dated 1896 the map shows you the rail network we had then in the Victorian area.
Which would have been on par with what Holland has now.

18

JayJay,

Glasgow 03/12/2006 17:22:03

I have heard creeps from the DoT justifying our absurd levels of PRT as being required to cut congestion. Since that clearly ain't working, it's smoothly on to plan B and road pricing. And when Angry from Tunbridge Wells starts getting hacked off about the great big queues of traffic outside his or her country garden as the B loads get over loaded, what's plan C?
There is no strategy here, never has been. I look at the Glasgow Edinburgh route, and wonder why on earth people go through the Kingsotn Bridge, Eurocentral, Calder Road, Hermiston Gate etc nightmare daily....then I remember the 2 years I commuted via Scotfail. Oh how I laughed at the amusing anecdotes of the platform announcer at Haymarket as yet another three coaches at peak time trundled in and trundled off with no one able to get on board. Or his great stories about why the train was cancelled (swans, cows, silver paper were some of my favourites!) Yeah great, price the car user off the road. But only do it when the alternative is cheap, efficient, and not groaning under the profit imperative.

19

Pete39,

Tassy 04/12/2006 05:24:01

OK you are fifty years in the future and the world has not yet blown itself to bits. You cannot afford a car or indeed the fuel to run it. What do you want, a horse and cart, a solar powered bicycle, or an electrically powered light rail system. For those unaccustomed to this type of quiz, the accepted scoring is "horse and cart, three, you can get where you are going eventually and the horse is edible", "electrically powered light rail system, two, it opens the opportunity for continual advances in efficiency", "solar powered bicycle, one, it only works when the sun shines." Just thought I would mention it. You maybe qualify for tax cuts by not eating the horse.


 

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