Eddington Transport Study

To meet the changing needs of the UK economy, Government should focus on improving the performance of existing transport networks, in those places that are important to the UK’s economic success:

• Government action needs to focus on tackling congestion, capacity constraints, and unreliability on existing networks.
• In some limited circumstances, there may be opportunities to extend the network which offer good value for money, for example government may wish to explore the case for extending the reach of existing urban networks in order to deepen labour markets.

Over the next 20 years, the three strategic economic priorities for transport policy should be congested and growing urban areas and their catchments; and the key inter-urban corridors and the key international gateways that are showing signs of increasing congestion and unreliability. These are the most heavily used and economically significant parts of the network:

• Look for signals of congestion, overcrowding and high productivity as high-level indicators that transport improvements may make a significant impact on economic growth and productivity.
• Bring forward and assess a wide range of alternative options to address transport performance in these areas.
• To achieve the greatest benefits from available funds, prioritise the options in these areas that offer the highest value for money, based on a full appraisal of their economic, environmental and social impacts.

Government should adopt a sophisticated policy mix to meet both economic and environmental goals. Policy should get the prices right (especially congestion pricing on the roads and environmental pricing across all modes) and make best use of existing networks:

• In line with the Stern Review, prices across all modes should reflect the true cost to society, including congestion, overcrowding and environmental impacts – through appropriate fiscal, regulatory, pricing or trading instruments.
• Use road pricing as the most appropriate way to tackle congestion: introduce widespread, congestion-targeted road pricing to deliver the potential benefits cost-effectively; setting out the key decisions (identified in Figure 12) needed to unlock the vast potential of road pricing.
• Explore the potential for high value for money better use measures that encourage changes in travel choices or exploit the opportunities provided by new technologies.

...reflecting the high returns available from some transport investment, based on full appraisal of environmental and social costs and benefits, the Government, together with the private sector, should deliver sustained and targeted infrastructure investment in those schemes which demonstrate high returns, including smaller schemes tackling pinch points:

• After considering the potential for pricing and better use, deliver sustained infrastructure investment where it offers strong returns in the three strategic economic priority areas.
• Do not be seduced by ‘grands projets’ with speculative returns.
• Implement proposals for additional runway capacity where the case is robust, having accounted for the environmental costs of emissions.

In order to meet these transport challenges, the policy process needs to start with the strategic economic priorities, define the problems, consider the full range of modal options using appraisal techniques that include full environmental and social costs and benefits, and ensure that spending is focused on the best policies:

• DfT, and local and regional bodies should put in place a process to drive option generation which is both cross-modal and which encompasses both better use and investment options; and should ensure funds are allocated to the policies which most cost-effectively contribute to transport objectives.
• Transport’s contribution to productivity should be reflected in the DfT’s objectives and in DfT’s and HMT’s performance indicators.
• DfT should develop a three-part decision making cycle, a long term outlook of emerging challenges over the next 20-30 years; a medium term strategy for delivering on its objectives over 10-20 years; and published statement of commitments, setting out details of committed schemes and timing of forthcoming decisions over the next 5-10 years.
• DfT should continue to develop and improve the evidence base to support these processes.

Government needs to ensure the delivery system is ready to meet future challenges:

• Consider the case for reform of sub-national decision making, so that sub-national bodies have the right geographical scope, powers and responsibilities.
• Legislate to enable local bodies to introduce bus franchising in urban areas, alongside bus priority measures and subsidy reform, to enable buses to fulfil their potential and become a substantial contributor to the success of urban areas.
• Continue to ensure that the UK remains at the forefront of engagement with the private sector, to maximise the positive impact that appropriate risk transfer can have on transport outcomes.
• Reform the planning process for major infrastructure projects to provide greater clarity and certainty without compromising fairness and thoroughness, in particular by providing greater clarity about government policy through Strategic Statements of transport objectives, and introducing an Independent Planning Commission to take the final decision on specific applications.