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Blog - May 2009

Business for road pricing?

The Confederation of British Industry (CBI) and the Freight Transport Association (FTA) have published a study which purports to argue that road pricing in cities would benefit business.  The consultants who carried out the work devised a model city with road pricing based on a double cordon – as had been proposed for Manchester but which was rejected in the referendum.

However, the conclusion of the study - that there would be a modest net benefit to business from road pricing - depends on the (dubious) assumption that the revenues would be used substantially to subsidise public transport in ways that would benefit businesses.   Worse, the study indicates that the costs arising from road pricing that are incurred by customers of businesses and their staff who commute to work would substantially outweigh the benefits to the firms themselves.

The conclusion I draw is that this report offers nothing to encourage customers and commuters to vote for city centre road pricing, and little if any economic benefit for business.

Posted on 11 of May 2009

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