www.curacaoproject.eu                      CURACAO - coordination of urban road-user charging organisational issues                   Funded by the EU

Road Pricing Context

OBJECTIVES

SCHEME DESIGN

TECHNOLOGY

BUSINESS SYSTEMS

Prediction

PREDICTION

TRAFFIC EFFECTS

ENVIRONMENT

ECONOMY

EQUITY

Appraisal

APPRAISAL

Decision Making

ACCEPTABILITY

TRANSFERABILITY

Implementation and Evaluation

EVALUATION

IMPLEMENTATION

Case Studies

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Bologna

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Cambridge

Durham

Dutch National Case

Edinburgh

London

Manchester

Milan

Nord-Jaeren

Oslo

Rome

Stockholm

The Hague

Trondheim



Urban Road User Charging Online Knowledge Base

Economy

There are a number of externalities that have had an impact on the UK and thus central London economy, both of which are closely aligned. TfL list these as:

  • The closure of the Central Line, owing to the Chancery Lane derailment, and the beginning of the war in Iraq in 2003;
  • The central London terrorist bombings in 2005;
  • The Bank of England interest rate increases in 2006.

TfL reported in their Central London Congestion Charging – Impacts monitoring Fifth Annual Report that there was “no general evidence of any clear differential impact of the central London congestion charging scheme on business activity.”

It is clear that it is difficult to quantify the economic impact of Congestion Charging in London. However, it is worth noting a number of observations about the ‘health’ of the economy in London since this indicates, even if it does not quantify, that Congestion Charging has not had a positive or indeed negative impact. We can note the following:

  • During 2005 business performance within the charging zone (at that time without the Western Extension) was significantly better than in the rest of London, notably in terms of profitability and productivity.
  • Analysis of comparative trends for various indicators of business performance continues to show no evidence of serious differences between the charging zone and comparative locations outside that might be indicative of a congestion charging effect either positive or negative on overall business performance in central London.
  • Trends in business VAT registrations follow this trend and do not indicate a significant congestion charging impact on central London businesses.
  • Businesses within the charging zone continue to recognize the decongestion benefits in terms of the area having become a more pleasant place to work and less problematic in terms of accessing work locations.

One of the key success factors for implementation of the Congestion Charging scheme in London, identified by TfL in their fifth annual monitoring report, July 2007, has been robust and far-reaching stakeholder and public consultation.

TfL states that consultation has been a ‘consistent element’ of the scheme from the development of the Mayor’s Transport Strategy in 2001 to the introduction of the Western Extension in 2007. A large number of formal and informal public and stakeholder consultation exercises have been held, some examples of which relate to:

  • The Western Extension;
  • The introduction of the Pay Next Day facility;
  • Removing anomalies relating to resident discounts;
  • Providing incentives to apply for discounts; and
  • Changes to the original Central London zone.