Britain needs to invest in infrastructure before introducing road charging, so users can begin to enjoy the benefits before they are charged, says a leading think-tank.

The Policy Exchange report, Towards better transport, says private finance could fill the gap between construction and charging.

Policy Exchange chief economist, Dr Oliver Hartwich, said: ‘The greatest barrier to pricing is public opinion. Having endured decades of special taxation for the benefit of general spending, motorists do not trust governments to introduce pricing from which they will benefit.’

The report, from former transport minister, Steven Norris, says traffic congestion is now endemic, affecting not just large cities but also the core motorway network and small towns.

It goes on to say congestion is one of the key restraints on the UK economy, costing in the region of £20bn a year, a figure set to rise significantly in coming years. Norris’ research suggests even relatively-small charges on congestion hotspots would soon pay for improvements which would reduce congestion.

‘A six-hour, peak-time weekday charge of 10p/km on a six-lane motorway, priced to run close to capacity, could, in 12 months raise around £1.5M per km – sufficient to pay for widening to eight lanes,’ says the report. A charge of 5p/km for cars and light vans and 10p/km for goods vehicles on all roads would mean that a doubling in the size of the motorway network could be paid for in less than two years.’

Effects of pricing and improved transport infrastructure on the economy will increase overall tax yields which could facilitate cuts in fuel and vehicle taxes, the report concludes.

Download the Policy Exchange report, Towards better transport, here