Charging ahead? Manchester's road pricing dilemma

Author: Adam Marshall
Date: 01/09/2008
Publication: Public Servant

It would be no surprise if Lord Peter Smith and Sir Richard Leese - Greater Manchester's most visible elected politicians - are having sleepless nights.

Since the dramatic defeat of long-serving transport authority chair Roger Jones in May's local elections, debate over the city-region's congestion charging plans has dominated local politics. In June, supporters celebrated when the conurbation's £3bn Transport Innovation Fund (TIF) bid, which includes the charge, was given the green light by Government.

Yet Manchester's charging plans are still a long way from becoming a reality. A looming referendum, grass-roots opposition, and the worsening economic picture could sink the charge - and related plans to drastically expand the city's bus, tram, and commuter rail networks.

For Smith, Leese and Transport Secretary Ruth Kelly, the stakes couldn't be higher. If their plans succeed, Manchester will land the biggest transport investment package seen outside London in decades. Should it fail, however, both the city and Transport ministers will see one of their key policy priorities in tatters - and face Greater Manchester's voters soon thereafter.

Electoral maths

Smith, Leese and other pro-charge council leaders are making a major political and electoral gamble. Three of Greater Manchester's ten councils - Stockport, Trafford and Bury - have already withdrawn their support for the congestion charging scheme. No surprise, given that they are now controlled by opposition parties.

The charge could still proceed with the support of seven councils. But there's a catch. If Labour-controlled Bolton follows through on its promise to hold a referendum, a no vote would scotch the entire TIF bid. What's more, Transport Secretary Ruth Kelly - one of the most vulnerable members of Gordon Brown's cabinet - is a local MP. The classic strategy of wheeling out a key minister to drum up local support could, in this case, backfire spectacularly. Adding to the uncertainty, the Conservative frontbench has indicated that a Tory government would keep TIF - but remove the un-stated road pricing requirement.

Given this situation, AGMA's decision to hold a Greater Manchester-wide referendum at the end of the year, following the three-month public consultation, seems sensible. Now, council leaders and c-charge supporters have mere weeks to convince sceptical voters that better buses and trains are worth the pain caused by a peak-time charge on car drivers.

Support and opposition

Despite the media hype surrounding it, London's congestion charge was never really as controversial as this one. Only one in ten central London workers commuted by car before the introduction of the c-charge in 2003 - compared to six out of ten in Manchester. Northern cities have a long-standing love affair with the motor car, thanks to their development patterns and the progressive decline of public transport seen over the past four decades.

Many drivers - who would face an outer charging cordon at the M60, and an inner cordon around Manchester city centre - are vehemently opposed to paying more for their daily commutes. Since many of Manchester's poor residents depend on the private car for transport, social impacts are also a big concern. And although supporters argue that Manchester's peak-time charge is more sophisticated, and that it would follow, rather than precede, massive public transport improvements, many remain unconvinced.

Manchester's major businesses have also split, forming mirror-image pro- and anti-charge pressure groups. Some see TIF as a unique opportunity for transport investment, while many small businesses worry about the immediate impact on their bottom line. At a time when fuel prices and inflation continue to rise, opponents argue that c-charging would be the last straw for struggling local businesses.

Charging and the economy

But would congestion charging really harm Greater Manchester's economy?

If done right, c-charging can have positive effects on city economies - by saving business time, by promoting denser urban development, and by generating additional revenue to support public transport. In a place like Greater Manchester, which has seen substantial economic growth over the past decade, alleviating congestion could result in increased productivity and better performance.

As always, however, timing is the key issue. Manchester's consumers and businesses are starting to feel the pinch of the economic slowdown. And though charging wouldn't be implemented until 2013 at the earliest, voters' views are hardening - and the Government's resolve is weak.

For road user charging to work in Britain's cities, bold political champions, the right financial incentives, and good timing are required. Done right, c-charging could boost the prospects of the local economy and help to link people to jobs. But Manchester's pro-charge leaders face a stiff challenge. If they are unable to convince the electorate of the benefits of the scheme, they could lose a once-in-a-generation opportunity to deliver a Manchester-wide transport overhaul - and keep the city moving over the decades to come.

A version of this article first appeared in Public Servant