New Tolls Could Price Drivers Off Roads, Officials Admit

Drivers could face significant new tolls and penalties on roads and bridges under proposed legislation that grants private firms sweeping powers for road construction and maintenance, according to government officials. The plan, outlined in the Highways (Financing) Bill, would allow companies that fund road projects to set their own toll rates to recoup costs.

The government's own impact assessment has raised concerns that motorists may face "perverse" and "inflated" charges. The assessment warns that private firms, operating with a potential "monopoly position" on new or upgraded roads, bridges, and tunnels, could exploit this advantage. "As a result, there is a risk that charges could be higher... than those that might be set under a public delivery model," the assessment states. It also noted that the regulator, the Office of Rail and Road (ORR), "may lack sufficient capability to regulate" these schemes.

Critics argue that drivers already contribute substantial amounts through Fuel Duty and Vehicle Excise Duty and should not be subjected to additional charges. The proposed laws could allow private entities to charge tolls on roads they have upgraded, meaning drivers might have to pay to use highways they currently travel on for free. While proponents suggest this model could unlock investment for infrastructure projects that the public sector cannot afford, opponents fear it could lead to a fragmented and unpredictable system of charges across the country.

This initiative comes amid a series of measures perceived by some as "anti-car." Since the current administration took power, there has been an increase in 20mph zones, which critics claim have led to a rise in speeding tickets. Furthermore, plans for a pay-per-mile levy on electric and hybrid vehicles and a potential fuel duty increase in the new year have also been announced.

Richard Holden, the Conservative Shadow Transport Secretary, criticized the proposals, stating, "Labour’s clearly botched plans show their repeated claims that they're on the side of motorists are nothing more than towering tubs of tripe." He added, "What could be clearer evidence of Labour’s war on motorists than trying to set up a toll-system that they know the regulator is incapable of regulating and could easily lead to perverse outcomes and inflated tolls."

The Highways (Financing) Bill aims to establish a new framework where licensed private firms, after building or upgrading roads, would be permitted to implement tolls. The ORR would oversee these tolls to prevent them from becoming excessive. However, the impact assessment highlighted the "risk of higher road user charges," noting that private firms often possess more detailed cost information than regulators, potentially creating an incentive to inflate expenses that can then be recovered through user fees.

It was also stated that private companies "may be able to exploit [their] monopoly position, which could lead to user charges being set above efficient levels…This could reduce value for money for users." While the reforms might expedite road construction, the assessment expressed uncertainty about whether the projected higher charges would materialize in practice.

Transport Secretary Heidi Alexander has stated that the new funding model has been "successfully used in other sectors such as energy and aviation." However, past reports indicate that many councils have increased parking charges, and some are considering taxes on workplace parking spaces, adding to the financial pressures on drivers.

The Department for Transport was contacted for comment.