Transport is crucial to a dynamic economy. Poor transport infrastructure and congestion impose damaging constraints on business, currently calculated at more than £15 billion a year. In a BCC survey of its members (Getting Business Moving), conducted in 2004, 56% of businesses said that the transport infrastructure has a major influence on where they locate and many felt that shortcomings in the transport system limit business growth.

Transport Campaign

The BCC will be running an integrated campaign over the coming year. This campaign will comprise a year of UK wide activity, across the Chamber network, to press for a 30-year national framework, backed up by increased investment and an increased priority in next year’s Comprehensive Spending Review.

• We need a national integrated, sustainable transport system, which delivers real choice across different modes of transport and that meets the needs of business. This must be driven by a 30-year national framework, controlled by a national strategic transport authority and backed up by short-term deliverables along the way. National strategic network of roads, rail, ports and airports should be backed up by strong regional and local decision-making. Improving the ‘last five mile’ links to key ports and airports are a vital part of this.
• The national framework must be backed by a real and sustained commitment to increase Government expenditure in a formula linked to GDP and GDP growth. There should be a commitment to increasing the percentage of GDP spent on transport infrastructure to a level similar to that of comparable successful world economies. Over the past 25 years, the UK has invested around 30 per cent less than its main European competitors. Because of the long lead times, funding allocations should extend beyond Treasury controlled 2-3 year spending cycles.
• There is a need to identify where the most appropriate decision making point is in transport planning. For any individual decision, the key test should relate to competitiveness. We need to redefine how projects of national strategic importance are defined so that key schemes do not fall by the wayside. We need value for money projects and market driven transport decisions, with an emphasis on domestic economic growth.
  

Roads

Background

• A debate on road pricing has been launched by the Government. The details of how the system would operate, not least technologically, have yet to be developed. Initial proposals include reducing fuel tax and vehicle excise duty to offset the additional burden to road users. The Department for Transport, however, has indicated that a national system of road pricing would not be technologically possible before 2014 which represents a significant delay in addressing the issue of congestion.
• In January 2005 the House of Commons Select Committee published its report on Road Pricing: The Next Steps, following its inquiry to which the BCC gave written and oral evidence. The report highlighted the need for any scheme to bring the costs in line with the benefits and be accompanied by complementary measures, not least improving public transport, traffic management and roads. The issue of who sets and regulates the charges needs to be addressed, particularly given the failings of some independent regulators in the transport sector.
• Isolated road pricing schemes are already in existence, for example the M6 Toll and the Central London Congestion Charge. Such schemes can be relatively easily introduced ahead of a national road pricing system and are likely to be expanded.

BCC Position

• There is a need to ensure that all transport funding allocations are judged according to the impact that they will have on competitiveness. The productivity category of the Transport Innovation Fund should be used to make sure that funding allocations are made based on the impact that they will have on economic growth.

• BCC supports the principle of road pricing, but only where the aim of the charge is to reduce congestion. Road pricing should form a coherent part of the local transport infrastructure and revenue raised should not just be absorbed into general tax revenue.

• Fuel duty must be abolished or reformed if a national system of road pricing is to be introduced.
• Where local road pricing schemes are developed, the views of business, vital to the local economy, must be sought. Local Chambers of Commerce are ideally positioned to represent the business view at a local level.
• A national payment portal must be developed to enable businesses to pay for road pricing schemes with ease.
• BCC supports tolled roads for new capacity. This could be through an additional parallel road, such as the M6 Toll or the proposed M6 Expressway, or additional lanes on existing motorways.
• BCC is implacably opposed to the Work Place Parking Levy

Aviation

BCC Position

• BCC remains firmly convinced that air capacity must be substantially increased, both in the South East and across the regions, to respond to current and future demands. Without this development, aviation will not be able to deliver the requirements of a dynamic economy.
• Protection of regional air slots into London should be avoided and the most effective means of doing so is to increase the number of runways at UK airports, as outlined in the Aviation White Paper 2003. Where there is a case for regional slot protection, they should be considered on a case-by-case basis.
• It is vital that transport routes connecting airports to towns and cities are improved at the same time that capacity is increased, to allow passengers and goods to travel quickly between hubs.

Rail

BCC Position

• The UK needs a rail infrastructure that works efficiently and meets the needs of the business community. Adequate funds should be invested to develop the rail network and build on the improvements that have been made on a number of key lines.
• Since the abolition of the Strategic Rail Authority, responsibility for setting the railway strategy and streamlining the structure has moved to the Rail Directorate within the Department for Transport. This change is in line with the BCC’s recommendations. We now need to see a clear strategy for the future of the railways to encourage long-term, sustained investment.
• Delays in upgrading lines, such as the West Coast Mainline, should be avoided as they have a damaging impact on local businesses.
• Funding for projects such as Crossrail in London, the next phase of Manchester Metrolink and the Leeds Supertram, needs to be agreed without delay to prevent prolonged uncertainty and the resultant damage to businesses.

For further information, please contact: -

Gareth Elliott
Policy Adviser
g.elliott@britishchambers.org.uk  
Direct Line: 020 7654 5810
Mobile: 07834 897 607