Transport Innovation Fund

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In the July 2004 White Paper, 'The Future of Transport', the UK Secretary of State announced the creation of the Transport Innovation Fund (TIF). The Fund would support:

the costs of smarter, innovative local transport packages that combine demand management measures, such as road pricing, with measures to encourage modal shift, and better bus services;
local mechanisms which raise new funding for transport schemes; and
regional, inter-regional and local schemes that are beneficial to national productivity.

Money from the Transport Innovation Fund would become available from 2008/09. Over the period covered by the Department for Transport's long-term funding guideline, the Fund was forecast to grow from £290 million in 2008/09 to over £2 billion by 2014/15.

Initial information on TIF was set out in the paper 'Transport Innovation Fund' in July 2005. This document provided guidance on the operation of the Fund and explained how the Government would

(a) seek proposals for packages and schemes aimed at tackling congestion through demand management and better public transport ("congestion schemes"), and
(b) identify schemes which meet productivity objectives.

For both categories (a) and (b), priority would be given to those proposals which are most effective in securing a financial contribution from significant beneficiaries.

The Transport Innovation Fund represented a new approach by the Department for Transport towards the allocation of some of its budget. Through the TIF, it would be able to direct resources towards the achievement of two high-priority objectives—specifically tackling congestion and improving productivity. The principle underlying the TIF is that resources should be allocated on the basis of an assessment of how these objectives could be most effectively and sustainably met.

The TIF would operate as a single pot. There would, however, be significant differences in the way in which the Department assessed proposals which were principally congestion schemes—for which bids were invited from local authorities—and those which were principally productivity schemes—for which the Department would identify potential schemes after seeking the views of the Regional Development Agencies during the early part of 2006.

[edit] London

The current Central London Congestion Charge run by Transport for London (TfL) has been operational since February 2003. In this time it has undergone several variations altering arrangements for payments and arrangements for operations such as fleet schemes. Significantly the charge was increased from £5 to £8 in July 2005.

Variations were planned for the scheme for February 2007 when it was extended westwards and the hours of operation altered to finish earlier.

In the longer term, in around 2010, the current contract with Capita who operate the scheme will need to be re-tendered. This will provide an opportunity for TfL to significantly change the scheme. Options for this are currently being studied and could mean the area and type of charge could be altered along with the technology and payment structure.

TfL are also introducing a Low Emission Zone in London whereby all lorries would have to conform to EU emission standards or be liable to a substantial charge.

In order to implement the London scheme, the government invested powers in Local Authorities, including Transport for London (TfL), to introduce charging schemes.

The Mayor of London, Ken Livingstone, was elected to power with a commitment to road pricing in his manifesto. Similarly he was elected to second term with a commitment to extend the current scheme. The Mayor is generally seen to be pivotal in achieving implementation of the scheme.

The Transport Innovation Fund programme has been a key driver for TfL in developing future plans for RP in London. The range of options and technology trials is seen to be key in leading the way for other local schemes and achieving acceptability and interoperability. TIF also provides the opportunity for TfL to develop road pricing in other areas of London in association with Local Authorities either as part of TIF or indeed where bids for funding have been unsuccessful but there is still a willingness to develop proposals.