Car insurance: Govt plans national road toll pricing

Monday, 07 August 2006

The government is planning the introduction of national road tolls to help combat road congestion, according to a leaked report.

The Sunday Times reports that transport secretary Douglas Alexander is planning a bill that will enable the creation of national road tolls as a way of reducing traffic on UK roads.

The current legislation has enabled areas such as Bath, London and Durham to set-up their own road-charging systems, which have approved by ministers. However, Mr Alexander is calling for powers to be able to set national standards and pricing systems as a way of reducing potential confusion for motorists.

The leaked letter from the transport secretary said: "The main purpose of the bill would be to support our efforts to cut congestion and improve public transport, particularly in the major cities outside London."

One way would be to introduce a pay-as-you-go system using special black box devices installed in every vehicle to help monitor drivers' road usage. It is likely that the system would replace car tax and could reduce car insurance costs for many motorists – especially those who have low annual mileages.

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