Pros Cons Of Congestion Charging
Pros
Reduce congestion - Therefore reduce time wasted and reduce costs for business
Reduce pollution - Fewer cars will lead to less pollution.
Make city centres more attractive for pedestrians and cyclists, which will help increase quality of life.
Raise revenue - The money from congestion charge can be spent on other forms of public transport and increasing alternatives to driving.
Make Drivers pay social cost of driving - Driving in city centres incurs significant external costs on the rest of society.
Reduce Journey Time - This is good for business, but also helpful for emergency services in getting to serious injuries quicker.
Cons
Lost Business for firms in the city center - It is argued that a congestion charge will encourage people to visit out of town shopping centres and lead to a decline in city centres.
Expensive to Administer - The costs of collection a congestion charge is much higher than petrol tax. It requires sophisticated technology and chasing up drivers who don’t pay or try to avoid. For smaller cities the administration costs may be prohibitive.
Evasion - Since the congestion charge has been introduced, there has been a growth in the number of false number plates and schemes to try to avoid paying the tax (such as setting up false mini cab firms)
Inequality - A congestion charge is regressive as it takes a higher % of income in tax from the poor.
Reduce congestion - Therefore reduce time wasted and reduce costs for business
Reduce pollution - Fewer cars will lead to less pollution.
Make city centres more attractive for pedestrians and cyclists, which will help increase quality of life.
Raise revenue - The money from congestion charge can be spent on other forms of public transport and increasing alternatives to driving.
Make Drivers pay social cost of driving - Driving in city centres incurs significant external costs on the rest of society.
Reduce Journey Time - This is good for business, but also helpful for emergency services in getting to serious injuries quicker.
Cons
Lost Business for firms in the city center - It is argued that a congestion charge will encourage people to visit out of town shopping centres and lead to a decline in city centres.
Expensive to Administer - The costs of collection a congestion charge is much higher than petrol tax. It requires sophisticated technology and chasing up drivers who don’t pay or try to avoid. For smaller cities the administration costs may be prohibitive.
Evasion - Since the congestion charge has been introduced, there has been a growth in the number of false number plates and schemes to try to avoid paying the tax (such as setting up false mini cab firms)
Inequality - A congestion charge is regressive as it takes a higher % of income in tax from the poor.