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Government should sell off UK road network, says RAC

01 September 2009

The government should consider selling off the UK road network to improve the management of the country's highways, according to the RAC Foundation.

In its report, Governance and administration of national and local roads in Great Britain, the RAC Foundation says major roads and motorways run by the Highways Agency (HA) could be sold to a private company, similar to the  way the rail infrastructure has been privatised.

The study, which values Britain's HA-managed roads at £85bn, says methods of payment for road usage under private ownership would include the company being funded by the Treasury through road tax or fuel duty income.

According to the RAC Foundation, this funding model could later be replaced by motorway tolls, or even a road-charging scheme.

Professor Stephen Glaister, director of the RAC Foundation, believes privatisation would lead to greater efficiency in road building and management.

In its report, the foundation says: "With the anticipated severe pressure on public finances over the coming years, the government may see the financial case for selling a stake in the HA as attractive."

Malcolm Bingham, FTA head of road network management policy, believes selling off the UK's motorways would be a "quick fix" and that private funding "seems to be the only  real option left".

He says: "The FTA supports this concept in principle, as long as any subsequent road pricing schemes that are adopted properly factor in the movement of freight and ensure the best solutions for UK businesses."

Jack Semple, RHA policy director, adds: "This is an interesting contribution to the debate about how you fund new roads, as well as the maintenance of existing roads.

"We would support any sensible move that addressed the issues of capacity, as well as congestion on the network."


Roger Brown
Email at roger.brown@rbi.co.uk
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