ABSTRACT
The chapter shows that the level of privately-financed investment in transport, which is worrying, given the criticisms levelled at this expensive form of finance by the Audit Commission. It suggests that the Government is seeking to avoid its responsibility for ensuring adequate investment. The title of the Transport White Paper A New Deal for Transport: Better Transport for Everyone captures the flavour of a document whose message is that everyone will be better off in the best of all possible transport worlds. The case for road pricing in urban areas rests on the claim that the marginal social cost of congestion is high and considerably exceeds the current level of fuel tax. Most inter-urban roads experience moderately constant traffic flows in daylight hours, but peri-urban motorways may experience pronounced peak flows, and these may benefit from some form of road pricing.
