Written evidence submitted by the Association of Directors of Environment,
Economy, Planning and Transport (ADEPT) (EVP0036)

 

Introduction

The Transport Select Committee has released a call for evidence which looks into the implications of accelerating the shift to zero emission vehicles and the potential for introducing road pricing, or pay-as-you-drive, schemes which considers the following matters:

 

Who are ADEPT?

ADEPT represents place directors from county, unitary and combined authorities, along with Local Enterprise Partnerships (LEPs), sub-national transport boards and corporate partners drawn from key service sectors throughout England.

ADEPT is a membership based, voluntary organisation with:

The key to unlocking economic recovery and renewal lies with local leadership. Place directors create the strategies, run the services and lead the projects that shape local places for their communities. The whole country benefits from investment in local place. Tackling inequality and climate change, while promoting health and wellbeing, supporting business and maintaining critical infrastructure is most successful when national investment is locally led.

 

ADEPT represents members' interests by proactively engaging central government on emerging policy and issues, responding to consultations and enquiries, creating national guidance, and promoting initiatives aimed at influencing government policy. ADEPT also represent public sector interests across all our key areas in national sectoral organisations.

 

Response:

 

Accelerating the shift to zero emission vehicles

In November 2020, the Government announced that it would end the sale of new petrol and diesel cars and vans by 2030, with all vehicles being required to have a significant zero emissions capability from 2030 and be 100% zero emissions from 2035.

ADEPT has identified the following opportunities presented by the acceleration of the ban of the sale of new petrol and diesel vehicles to 2030:

ADEPT has identified the following challenges presented by the acceleration of the ban of the sale of new petrol and diesel vehicles to 2030:

Actions required by Government have been identified by ADEPT to encourage greater uptake of electric vehicles, these include:

Actions required by private operators have been identified by ADEPT to encourage greater uptake of electric vehicles, these include:

Actions required by Government have been identified by ADEPT to encourage greater provision of electric vehicle charging infrastructure, these include:

Actions required by private operators have been identified by ADEPT to encourage greater provision of electric vehicle charging infrastructure, these include:

ADEPT has identified particular challenges around decarbonising buses which include:

Solutions to the above identified challenges include:

Considerations the Government should review prior to consulting on a date for phasing out the sale of new diesel heavy good vehicles have been identified by ADEPT, these include:

Road Pricing

The Government has said that the tax system will need to encourage the uptake of electric vehicles and that revenue from motoring taxes must keep pace with this change. One consequence is that the £40 billion annual income from Fuel Duty and Vehicle Excise Duty is likely to decline sharply in future.

ADEPT has identified potential reasons as to why the Government should look to introduce some form of road pricing, these include:

Impacts associated with introducing some form of road pricing have been identified by ADEPT. These can be categorised as either economic, fiscal, environmental or social, and have been split into positive and negative impacts:

Impacts

Positive

Negative

Economic

  • Reduced traffic should lead to faster travel times and more reliable journeys.
  • Better maintained roads.
  • Better use of the roads as an asset.
  • Reduction in pollution.
  • Improved public health.
  • Local raised revenue to support sustainable travel choices.
  • Generates alternative income.
  • Businesses move outside of the charging area.
  • Discourages people taking journeys.
  • Impact on business running costs/ freight costs.
  • May be an impact on bus fares if the operator must pay more for their services.
  • Inequalities between charging and non-charging urban areas.
  • Social inequality issues i.e. poorer people more adversely impacted.

Fiscal

  • Able to better understand the link between demand and maintenance cost.
  • Able to better understand the link between infrastructure upkeep and demand.
  • Revenue to invest in maintenance of highway network.
  • Local raised revenue to support sustainable travel choices.
  • Funding may not be distributed between Council areas.
  • Restricted scope of reinvestment opportunity.
  • Risk of complexity.
  • Local vs national distribution of costs on strategic urban motorways.
  • Government may bypass local authorities in terms of provide a revenue stream for local transport.
  • Impact on smaller business higher costs that cannot easily be absorbed.
  • Users may not generate enough revenue to cover costs.  Therefore, extra subsidy may be needed from national purse for economic gains.
  • Will income be ringfenced for transport?

Environmental

  • Reduced emissions - greenhouse and particulates.
  • Encourages operators to upgrade their fleets to lower emission.
  • Encourage public transport use.
  • Improved air quality and public realm.
  • Dynamic /surge pricing to nudge demand on days with bad air quality.
  • Member buy in to environment agenda.
  • Does not tackle levels of traffic.
  • Risk of numerous solutions with no interaction.
  • Infrastructure could have negative visual impact.
  • Although CO2 emissions could fall, particulate pollution may still be an issue.
  • Noise levels still an issue unless demand reduced.
  • If the wrong price signals are set, then this may encourage more travel by road.

Social

  • Improved public health.
  • More quiet streets that can be closed for children to play or other activities.
  • Drives behavioural change towards other means of travel.
  • Can reallocate road space for socio-environmental uses.
  • Perception of a "fairer society".
  • Easier for people to make more informed travel choices
  • Could prevents disadvantaged people from accessing essential services.
  • Potential to disadvantage lower income groups.
  • Urban and rural differences - rural isolation.
  • Those that depend on road travel for livelihood may see it as unfair.

 

When identifying which road pricing or pay-as-you-drive schemes would be most appropriate for the UK context, ADEPT consider eight types of road pricing mechanism. The following list outlines the which mechanisms members considered to be most applicable to the UK context (‘1.’ being the most applicable and ‘8.’ being the least):

  1. Congestion pricing (time-variable) – A fee that is higher under congested conditions than uncongested conditions, intended to shift some vehicle traffic to other routes, times and modes.
  2. Cordon fees – Fees charged for driving in a particular area. e.g. London ULEZ zone
  3. Distance-based fees – A vehicle use fee based on how many miles a vehicle is driven.
  4. Pay-As-You-Drive insurance – Prorates premiums by mileage so vehicle insurance becomes a variable cost.
  5. Road toll (fixed rate) – A fixed fee for driving on a particular road.
  6. Micro-Transactions – e.g. Charging mobility providers for accessing kerb space (for example for docking/pick up)
  7. HOT Lanes – A high-occupant-vehicle lane that accommodates a limited number of lower-occupant vehicles for a fee.
  8. Road space rationing – Revenue-neutral credits used to ration peak-period roadway capacity.

Potential other identified options include:

The practicalities of implementing such schemes included the following observations:

ADEPT has identified the following ways as to how the views of the public should be considered in the development of any road pricing scheme:

Identified lessons learned from other countries who are seeking to decarbonise road transport and/or utilise forms of road pricing include:

 

 

February 2021