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The London Assembly has called on the mayor of London, Sadiq Khan, to replace the daily London Congestion Charge with a road-pricing scheme in order to ease congestion in the capital.
It's championing a reform to the current congestion charge - which presently costs £11.50 per day - to instead charge vehicles as per the amount of time they spend in the zone, as well as the time of day. Subject to consultations, this could be implemented as soon as next year.
According to the Assembly, which is elected to hold the mayor to account, traffic delays on busy roads in the capital cost London's economy £5.5bn in 2015/16, an increase of 30% in comparison to 2012/13.
It cited statistics from Stockholm where car traffic levels fell by 22% after a 'congestion tax' was introduced in 2006. Road users were charged £1-£3 every time they crossed in or out of a central zone, with the higher charges being incurred at peak times.
Although fare structures are undecided at this stage, a spokesperson for the Assembly told BusinessCar that Stockholm's prices give "a general indication of how fees could be structured", while pricing will also depend on a vehicle's emissions.
Singapore operates a similar scheme in which the pricing structure is reviewed quarterly and amended to reflect changes in the severity and timing of congestion. At present, it costs up to £3.40 to enter and exit the zone.
If implemented, the Assembly spokesperson said the new system would probably contain exemptions and discounts. However, there are no plans to extend any exemptions to vehicles that don't currently receive them.
A survey of motorists conducted by the cross-party group found that half the respondents would find a road pricing system such as this to be fairer than the current flat-rate congestion charge, with just 20% opposing the proposals. Meanwhile, another survey found that road pricing would encourage motorists to drive at less congested times or switch to other modes of transport.
Colin Stanbridge, chief executive of the London Chamber of Commerce and Industry, welcomed a possible C-Charge reform, but warned against penalising businesses: "Our concern would be that businesses are not used as a money-spinner and any new scheme takes into account the economic value of a journey, but businesses should not be punished when alternatives are not available."
Caroline Pidgeon, chair of the London Assembly Transport Committee, commented: "TfL is doing a lot to tackle congestion, but not enough. Gridlocked London needs to start moving again and tinkering is not going to achieve that. A total rethink is imperative to get the veins and arteries of our great city flowing freely again."
However, David Jinks, head of consumer research at Parcelhero, said: "It's been proven that deliveries to homes and offices are far greener than consumers climbing into their cars to do an equivalent shop; and couriers should not be discouraged from delivering into the centre of London because of higher fees."
Under the Greater London Authority Act 1999, TfL has the power to introduce, at any given time, road charging with different price levels depending on the time of day, area, distance travelled and the type of vehicle.
In the report, the Assembly accepted it would take a while for such a scheme to be put in place. The spokesperson said it's unlikely any plans would be made until the publication of the Mayor's Transport Strategy, due in 2018. This is because it would require extensive research by TfL and discussions with local boroughs in order to determine the geography of pricing and how a scheme could tackle local congestion issues.
"We welcome any report that seeks to grapple with the crucial issue of congestion on our roads. There are some innovative new ideas here that we will look closely at," said Val Shawcross, deputy mayor for transport.
According to TfL figures, average vehicle speeds on major roads fell from 19.9mph in the fourth quarter of 2012/13 to 17.7mph in 2015/16, while the journey time reliability - where the percentage of trips completed with an excess of five minutes on a 30-minute journey in the morning peak - on the network of major roads managed by TfL fell from 89.2% in 2012/13 to 87.8% in 2015/16.
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