TfL says London’s roads are being subsidised by public transport users. Is it true?

Traffic in London in 2005. Image: Getty.

Are public transport users subsidising London’s roads?

The idea sounds faintly ridiculous, because it goes against all received wisdom. Everyone knows that it’s public transport that gets all the subsidies, right? Poor old drivers are taxed through the nose. Right? Right?

Nonetheless: “passengers subsidise motorists” is now the official line over at Transport for London (TfL). From its latest business plan:

From next year we have to, for the first time, address the critical issues of London’s road network, including congestion, road danger, maintenance and air quality, without any Government operating grant. Furthermore, from 2021, the £500m raised every year from Londoners paying Vehicle Excise Duty will be collected by central Government and only invested in roads outside the Capital.

This means the net operating costs of London’s roads, currently almost £200m each year, and the cost of renewing these roads, between £100m to £150m each year, are effectively being cross subsidised from fare-paying public transport users.

The next paragraph gets a bit “go ahead punk, make my day”. Emphasis mine:

This is neither sustainable nor equitable. As a result, in the short to medium term we will have to significantly reduce our programme of proactive capital renewals on the road network, although we will ensure safety of the network is maintained

There’s a certain amount to unpick here. It’s true that TfL has historically had a grant from central government: that comes from the Department of Transport, and is paid via the Greater London Authority.

And, yes, that grant is indeed tapering off. That’s been happening since April 2013, and will conclude in 2019-20, making 2021 the first year that TfL will operate without a penny of cash from central government. TfL’s responsibilities, what’s more, do include a certain amount of maintenance of London’s road network, and the budget puts their cost at £350m per year.

Since the tax road users pay – Vehicle Excise Duty – is going to central government, and by 2021, central government won’t be giving TfL a penny – and since it’s true that TfL does get most of its money from public transport fares – then, yes, TfL is maintaining London’s roads using cash provided by public transport users rather than drivers.

But there are three things which slightly complicate this argument. One is that TfL isn’t the only body investing in London’s roads: the boroughs and Highways England are also involved. So central government money may still arrive by other means.

Another is that fares aren’t the only source of revenue for TfL. Okay, they’re a big one (see below). But as TfL itself admits, that central government grant has been replaced by Business Rates – a form of property taxes – retained by the GLA. “Businesses subsidising London’s road” doesn’t make for quite as sexy a headline.

TfL’s sources of income, as shown in its 2017-18 budget.

Another complicating factor is that Vehicle Excise Duty is, despite what shouty drivers like to yell at cyclists, not actually a road tax. The money was briefly hypothecated for road maintenance – in the 1920s and 30s. Since 1937, though, it’s just been a form of general taxation: maintenance is also funded from income tax, VAT, and so on.

And so, it’s a bit silly to argue that the money London’s drivers pay to maintain London’s roads is not going to London’s roads because they don’t really pay to maintain London’s roads, and that’s been true for 80 years.

But all this feels like nit-picking. It is true that TfL gets a lot of money from public transport users, and remarkably little – central London congestion charge aside – from drivers. That, given that cars cause pollution and congestion while trains, trams and bikes don’t, feels like the wrong way round.


And, for what it’s worth, the claim that public transport users are subsidising roads is one I first heard from a TfL staffer a couple of weeks back. Even if TfL doesn’t believe it’s true, it’s clearly decided to convince us that it’s true.

Jonn Elledge is the editor of CityMetric. He is on Twitter as @jonnelledge and also has a Facebook page now for some reason. 

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The Liverpool metro just got its first new station in 20 years

The new Maghull North station. Image: Merseyrail.

Always nice when we get to report on a new bit of urban transport infrastructure outside London: the new station in Merseyside is hardly Crossrail, but it's a start.

The first trains reached Maghull North early this morning. The new station lies just north of, well, Maghull, on the Ormskirk branch of Merseyrail's Northern Line. Trains run to the eponymous West Lancashire town in one direction, and Liverpool Central in the other. (Only trains on the Southport branch of the Northern line continue south to Hunts Cross. Don't say we never reach you anything.)

Here's are some pictures of the new station, which looks adorably like it was built out of lego:

Plans for a station at Maghull, where a whole bunch of new housing is planned, have been on the table for more than a decade now. But its business case didn't win funding from the Liverpool City Region Combined authority until October 2016, and planning permission took another three months after that.

This is the first new station to open on the Merseyrail network since 1998, when it got two: Brunswick (just south of the city centre on the Northern line), and Conway Park (across the river, in downtown Birkenhead). Smartarses will try to tell you that other new stations have opened since – but Wavertree Technology Park, which opened in 2000, is only served by Northern Rail, and Liverpool South Parkway (2006) was actually an amalgamation of two existing stations at Allerton and Garston.

The network before Liverpool South Parkway, with its site circled. Click to expand. Image courtesy of Project Mapping.

The really exciting development, of course, would be for two new stations in the city centre to come off. Vauxhall lies to the north of the central business district, near to the site of the proposed new Everton Ground; St James lies to the south, in the Baltic Triangle creative district. Build both of those, and you'd end up with pretty comprehensive coverage of the Liverpool waterfront, as this map from our local correspondent Dave Mail shows:

Click to expand.

At present, both stations are just ideas in the authorities' eyes. But if Merseyrail is in a "building new stations" kind of a mood, then...

Anyway: I really just wanted to write something positive about train in the north of England. It’s been a while.

Jonn Elledge is the editor of CityMetric. He is on Twitter as @jonnelledge and on Facebook as JonnElledgeWrites

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