Road user charging

Legislation - what the law allows

The government legislation that allows for the introduction of what it describes as 'road-user charging' is contained in the Transport Act 2000.

These powers allow local authorities to introduce road-user charging and workplace parking levy schemes. They also allow, at the request of the local authority, for the Secretary of State and National Assembly for Wales to introduce charges on trunk roads to complement a local authority charging scheme.

The Secretary of State and NAW will also be able to introduce charges on trunk road bridges and tunnels at least 600 metres in length, to make investment more affordable.

These powers are contained in part III, sections 162 to 200, and schedules 12 and 13 of the Act.

The main provisions:

• Local traffic authorities can introduce road-user charging schemes to tackle congestion problems. These powers mirror those available to the Mayor of London and the London boroughs.
• Local authorities can also introduce a levy on parking spaces at the workplace.
• Local authorities can introduce a charging scheme only if it helps meet the priorities identified in the authorities' Local Transport Plans and considers the specific local circumstances.
• No scheme should proceed unless and until it has been shown to be justified in terms of costs and benefits, with reference to the specific proposals for charge levels and scheme design for that scheme.
• All schemes require consultation within the community, allowing those representing particular interest groups to consider the proposals.
• The charging powers provide for new demand-management tools to control levels of traffic demand.
• Implementation of these tools can generate a source of new, guaranteed funding for local transport improvements.
• For 10 years following implementation of a road user charging scheme, 100% of all monies raised will have to be devoted to improving local transport, including better public transport. This process is known as hypothecation.
• The Scottish Ministers, the Secretary of State or the Minister for the Environment, National Assembly for Wales (NAW) will scrutinise and approve individual schemes, including expenditure plans.