Ministers in the United Kingdom are proposing legislation that would grant sweeping powers to private firms to fund and manage road construction and maintenance projects. The Highways (Financing) Bill, tabled recently, would allow these companies to introduce new road tolls and penalties to recoup their investments.
Under the proposed laws, private firms that finance road building or upgrades could effectively become the new highway authority. This could lead to the emergence of toll roads, tunnels, and bridges in various locations, similar to the Dartford Crossing. The charges would apply to both newly built schemes and existing roads that private companies upgrade, meaning drivers might face fees for routes they currently use for free.
Supporters of the plan argue that it could unlock necessary investment for infrastructure projects that the public purse cannot afford. However, critics express concerns about a potential 'wild west' scenario with a patchwork of charges across the country. They fear that companies, driven by shareholder interests, could impose excessive or 'punitive' tolls on drivers who may have few alternative routes.
Motorists already contribute significantly to road funding through taxes. Drivers pay nearly £35 billion annually in road tax and Fuel Duty, which is intended to support road building and maintenance. Critics argue that introducing new tolls on existing roads would be an undue burden given these existing contributions.
Transport Secretary Heidi Alexander stated in a letter to MPs that this funding model has been successfully utilized in other sectors like energy and aviation, citing projects such as the Thames Tideway Tunnel and Sizewell C nuclear power station as examples. She indicated that lessons learned from these projects have been applied to the road sector to improve the model's effectiveness.
The proposals have drawn sharp criticism from opposition parties. Conservative shadow transport secretary Richard Holden accused the government of attempting to "slyly slip out plans for charging for road use" and warned of "a wild west of punitive new charges." Reform UK deputy leader Richard Tice echoed these sentiments, stating that the government is "waging a war on motorists, and working families are paying the price."
AA President Edmund King commented that while improvements to road networks are welcome, drivers need reassurance that new tolls will not be imposed on existing routes. He noted that additional charges would be "a toll too far" for motorists who already pay substantial amounts in fuel duty and road tax.
The Highways (Financing) Bill outlines a licensing regime for private firms. While the bill does not specify a cap on tolls, the Office of Rail and Road (ORR) regulator is intended to oversee the regime to ensure rates are "fair and transparent." The ORR would monitor tolls, which could be set based on factors like time of day, distance traveled, and vehicle type. Provisions are also being made for penalties for non-payment, with firms potentially having powers to use debt collectors and, in some cases, require the installation of tracking devices in vehicles.
The Lower Thames Crossing project is identified as a potential early scheme to fall under the new regime. The Dartford Crossing, which has faced criticism for continuing to charge tolls long after its construction costs were repaid, is owned by the government. Concerns exist that private management of such schemes could lead to increased charges and potential profiteering, drawing parallels to accusations of 'cowboy' practices by some private parking firms.
A Department for Transport spokesperson stated that any license holder would require permission to introduce new tolls, and these would be capped and independently regulated by the ORR. The government also highlighted its commitment to improving road conditions through significant investment in road repairs and infrastructure projects like the Lower Thames Crossing.