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PROFESSOR David Newbery
PROFESSOR David Newbery
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£7.50 - Likely cost per day for Toll Tax in 2013

Pamela Welsh
20/ 3/2008

THE real cost of the proposed congestion charge could be as much as £7.50 per day, an Advertiser investigation can reveal.

Transport bosses accept the much-publicised £5 per day figure was based on 2007 prices and the real figure, if the charge is introduced, would be affected by inflation.

However, the Advertiser can reveal the inflation rate for public transport costs and fares, is more than double the rate which affects the economy as a whole.

The transport inflation rate is considered a more accurate way of measuring how congestion charge pricing might change.

According to Government figures, in 2007 this figure was 6.6 per cent. Year-on-year increases at this rate, up until the delayed start date of 2013, would mean commuters paying £2.50 MORE per day than they have been led to believe. This works out at a maximum of £12.50 extra every week and £650 extra per year.

An Association of Greater Manchester Authorities report in July last year which updated its members on the TiF bid before it went to central Government was ambiguous about how pricing might change. It states: "The charging proposals are at today’s value and it has been assumed that they will rise in accordance with some form of indexation which has yet to be defined."

And the GMPTE’s own website states: "The charges... at today’s prices would come to a maximum of £5." The key phrase, our investigation has uncovered, is ‘at today’s prices’. However, their multi-million pound PR campaign has often overlooked this, leaving most people to believe they would be paying a maximum of £5 when the scheme starts.

A leading Cambridge University academic has supported the basis of the Advertiser’s findings and suggested the actual figure could be higher than our £7.50 calculation.

Professor David Newbery, who specialises in transport economics, said: "Rail and bus fares have been going up faster than the rate of inflation, so there is now a separate rate of inflation for transport.

"This can be anything from around six per cent upwards.

"Unless they bind themselves in part of the deal with the voters to raise it no more than the (general) rate of inflation, they can pretty much do what they like.

"Even then, they can choose which rate of inflation to go with.

"It would be entirely up to them - look at Ken Livingstone, he can do what he wants, and has done.

"The price of congestion charging there has almost doubled in the last few years."

In November 2007, the Advertiser employed the Freedom of Information Act to ask the GMPTE for their projected figures on congestion pricing which they submitted to the Government as part of the TiF bid. The GMPTE refused to supply the information, saying that it was ‘not in the public interest’.

The case is currently being investigated by the Information Commissioner.

Irlam councillor and chair of the GMPTA Roger Jones could not confirm or deny our figures or promise the charge would track the general inflation rate.

He said: "The charges will be tied to a set of indices and we don’t know what they will be.

"Of course, someone will say that there are many different inflation rates and we can choose which one, but I think that would be highly unlikely.

"I don’t think that Labour councillors would accept a huge hike in these prices.

"We have to go to a four month consultation, and that’s only if the TIF bid is accepted by Government. We would not mislead the public and will make sure we stick to one set of indices when we work it out."

He also refuted that congestion charging would be subject to the inflation rates for transport, even though the money raised is linked to transport improvements.

He said: "Congestion charging isn’t related to public transport - a lot of these stories are just scaremongering."

Motorists using two of Salford’s busiest roads could be hit with the charge - Regent Road A57 and the East Lancs Road A580 - at peak times.

The Government is currently considering a TiF bid for £3bn to improve public transport across Greater Manchester.

But due to laws governing local elections, if the Government do not make the announcement by the end of March, they will have to wait until after people go to the polls.

The bid will then go for public consultation.

  • Even if the GMPTA decide to raise the charge by the general rate of inflation, which is around three per cent, commuters will still be charged a maximum of around £6 a day by 2013.


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    Most recent 2 of 3 user comments

       It is very obvious the powers that be have not yet been able to do joined-up thinking. How can GMPTE refuse to supply essential information, saying it is not in the public interest, when we are the very people who will be affected should a congestion charge be imposed. How is a congestion charge going to solve the problem of congestion. If successful and people get out of their cars, then we do not have the punters to repay the conditional £2BILLION loan back over the next thirty years, so councillors do not actually want congestion to go away, they just want us to pay more and more and come up with ridiculous traffic calming measures that only produce even more bottlenecks. With on-going research and development into producing bio-fuels the clean air brigade cannot argue about Climate Change as we will likely all be driving hybrid vehicles in the not too distant future (certainly well before thirty years) and these will be charge exempt, so where will the funding come from to repay the loan. The tax paying citizens will still be strapped up to £2BILLION debt and if money cannot be raised through charges then no doubt it will be added to Council Tax Bills. Once again I say this is another stealth tax. Investment in Public Transport should be on-going from fares and taxes already paid by passengers and motorists. What has Central and Local government done with our money. Other areas in the country have applied and been accepted for investment in public transport without being tied to a congestion charge. Tell MPs they cannot claim for second mortgages or go shopping at the expense of the electorate. The money saved there will go a long way to improving investment in public transport. Also let the people decide via a referendum. We were intelligent enough to vote you in, we are therefore intelligent enough to vote you out.
    M Taylor
    21/03/2008 at 00:41
       Dont worry Roger and his followers will be out on may 1st.
    had enough, Worsley
    20/03/2008 at 15:36
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