Keeping the Midlands Moving

It is rare for the West Midlands to agree about anything. The capital can usually ignore us because rather than hear one voice they hear a cacophony. Yet almost everyone in Birmingham and the West Midlands seems to agree that traffic congestion is endangering the economy. All of our modes of transport are bursting at the seams. Look at the M42, M6 or New Street Station.

There is simply no spare capacity on any of our modes of transport. That is why there is such chaos when there is the slightest disruption to traffic at peak times.

We have been investing in our infrastructure. But after fifteen years of continuous economic growth we have not invested as quickly as the traffic has grown. So despite the M6 toll and other road improvements and huge investment in the West Coast mainline the infrastructure is getting worn out faster than we are replacing it. And as for increasing capacity forget it.

Gerry Blackett CEO of Birmingham Chamber recently indicated how with a relatively modest spend we can eliminate some of the key pinch-points in our transport networks. But the existing networks do not reflect the needs of the present economy. Key major routes say Birmingham to Southampton or Birmingham to Lowestoft do not have sensible rail routes for containers.

It is equally absurd that all road traffic from Manchester to Bristol has so long to look at Bescot Stadium as it leaves the M6 to join the M5 that it has become a prime advertising site. Similarly the main road from Dublin to the Hook of Holland has to go around two small islands as it leaves the M6 to try and gain access to the A14. I am sure we all have our own favourite absurdities in the transport network and this is before we get into trams or airports.

The Seven West Midlands Councils and Centro have sent the Government their wish list with a £4.6 billion price tag. A bit steep when you think we currently get only £90 million a year for the whole region for major transport projects.

For a change it seems we know what we want. But we are kidding ourselves if we think the Government is going to pay for it.

The fact is we need an income stream that reflects the growth in the economy. It must be clear to everyone by now that our politicians are not going to ask the wider electorate to vote for higher taxes to pay for better transport systems. The Centro bill shows they can be very expensive and there is already the £3.5 billion to widen parts of the M6. The electorate have good reason to distrust politicians the temptation to rob long term spending on infrastructure for short term spending on more eye catching things is very difficult to resist.

So the real question is, if not from HMG, where is the money to come from?

The fact that the recently announced improvements to our rail network are mainly to be paid for by passengers is a clear signal. The user is going to have to pay.

We must look again at road pricing. Some argue that vehicles are already paying enough tax for using the roads and that any system would be a tax too far. Or that we should wait for a national system – the cost of such a system will I fear out strip our ability to implement it.

The challenge we have I think is to decide what the issue is we are seeking to tackle. Do we wish to increase the capacity of our networks or do we want to choke off some demand for movement by price?

The fear for many who hear about road pricing is all they hear is the latter. Many people cannot afford to live where they work and to further punish them by increasing their already excessive transport costs does not seem fair. But this is the uncomfortable truth road pricing has to do a bit of both, increase capacity and change behaviour. For a tax to relieve congestion - it has to be high enough to change what people do and there is no doubt if there is no pain there is no gain. It will hurt those less able to pay and also will hurt disproportionately those businesses that have to deliver into the congested areas.

The real choice we have is unplanned rationing by congestion which has a cost but does not generate any revenue. Or to attempt to raise revenue from congestion with road pricing which at least offers a new revenue stream for capacity improvements. And surely we can come up with varying the charges for essential deliveries or for essential workers.

We will never be able to have enough capacity to satisfy the demand if everyone decides to go to the same place at the same time but we can get nearer to matching demand with supply and thereby not choke off the economy.

If we do not do this the gap between the transport systems we need and what we have will get wider and wider and with it the attraction of the region as a place to invest, work, visit or live.