Roads privatisation plan?


The government will today announce a plan to privatise at least the management of certain roads.The idea is to transfer control of maintenance and expansion of major roads and motorways to private sector companies.

These companies would be paid by the government, possibly via “shadow tolls”. Shadow tolls would be a fee paid by the government for every vehicle that uses that stretch of road – it would not be paid directly as a toll by the driver.The government thinks the proposed structure would be more efficient. The companies could run the operation better than the Highways Agency and would be able to make long-term plans for maintenance, safe from the annual budgeting and last-minute cancellations that bedevil government roads policy.

The idea was welcomed by the RAC Foundation, which said: “We should cautiously welcome the prospect of private sector involvement. There are just not enough public resources to provide the capacity we need and this offers the chance to make long-term plans for a utility every bit as important as things like water, power, electricity and the railways.”

That reference to Network Rail was a bit unfortunate. A recent government report said its costs are 30% above other European networks and are far higher than before it was privatised.