National congestion charge 'worth £16bn'

A national road congestion charging scheme in England could raise £16bn a year, according to a think-tank report published yesterday.

A national road congestion charging scheme in England could raise £16bn a year, according to a think-tank report published yesterday.

Money raised should be used to scrap road tax (vehicle excise duty) and pay for public transport improvements, the report from the Institute of Public Policy Research said.

But although rural drivers would pay less in the scheme put forward by the institute, suburban and business drivers would pay more. A high-use business driver in London could pay up to £141 more a month.

The institute said it would be a bad idea to use the money raised to cut fuel duty because this would lead to a 5 per cent increase in road traffic and an increase in carbon emissions.

All drivers would benefit from less congestion, the institute added.

This week the Government will publish an independent report on road pricing.