WIREDGOV

The CBI has commented on the command paper Action for Roads published by the Department for Transport.

Rhian Kelly, CBI Director for Business Environment, said:

“This is a small step in the right direction. Six-year investment plans and a more independent Highways Agency will give greater funding certainty – but overall, these measures fall well short of dealing with the fundamental problems facing our major roads. 

“Ministers can’t ignore the current £8 billion funding shortfall – it has to be tackled and only private investment can fill the void. We need a radical overhaul in how the UK pays for and manages the road network, instead of relying on ever-tighter public finances. The Prime Minister set out a long-term vision last year and ministers must be bolder to see his ambition through.

“The CBI has proposed in detail how the UK can build a world-class network over the next few decades. It’s time we had a grown-up public debate about how to build the roads this country needs to stay competitive.”

Background 

1. The RAC Foundation estimates there is a £8 billion shortfall across 96 major road schemes announced by Government.

2. The CBI published its Bold Thinking report in October 2012 on how to secure new sources of funding for the Strategic Road Network: It proposed:

• a redefined Strategic Road Network, managed by regional operators under a Regulated Asset Base model.

• in the medium term, a proportion of Vehicle Excise Duty converted to a user charge, which operators invest directly back into the network giving users a bigger bang for their buck

• in the longer term, to attract additional investment, the network offers additional revenue stream, such as road tolling, beyond the user charge.

• the Highways Agency converted into a forum to ensure all user and business interests are represented.

• an independent, price-setting regulator to oversee investment from private operators for stable, capped returns and ensure standards are maintained for the motorist.