Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Mike Waters' blog: 28 March 2012 - The winding road ahead
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Mike Waters' blog: 28 March 2012 - The winding road ahead

Date: 28 March 2012

Mike Waters is senior insight & consultancy manager at Arval, the leading vehicle leasing and fleet management company.

You will have heard by now that the government is considering asking private companies to manage some of the largest roads in the UK. It goes without saying that this would be a significant change in policy and would have a major impact on UK motorists.

The government currently faces the three-pronged challenge of balancing the books while reducing road congestion and our environmental impact. For these reasons, it's a compelling prospect for them, plus there's precedent. The trains were privatised a number of years ago, although there were certainly teething problems, and some would argue we are still feeling the effects of them!

Managing a network of major roads with high traffic levels is a major task that involves significant resource investment. Therefore for this to make sense for any private company, they will need to be able to generate income from it. As far as I can see, the only way to do this viably is through charging people to use these roads.

Trying to take a balanced view, this initiative looks like a double-edged sword. First and foremost, this is another charge for the driver at a time when many are struggling to absorb the current cost of motoring. However, the government is posturing towards a reduction in road tax to counterbalance any road charges; and actually paying based on use may deliver a fairer system.

Many will be concerned that we are putting our road network (something that we are totally reliant on in the UK) in the hands of private companies. With the pressure of market forces, the fear is less investment and worsening road conditions. On the flip side, introducing tolls could mean less congested, more efficient roads which would be great news for business and great news for drivers.

So its early days and at the moment this is just a proposal but the implications could be considerable. However, with the government needing to do the things that I mentioned above (generate funds, reduce congestion and reduce vehicle pollution) more radical approaches can't be ruled out. And even if this doesn't come in the form of privatisation, an increase in road pricing is likely over the coming years.

For drivers and companies, it will be important to keep their finger on the pulse in terms of changes to policy and it will mean that journey planning will remain crucial - understanding the cost and congestion impact of the routes that you take.



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