The Department for Transport has announced that the loss of fuel tax revenue resulting from schemes to promote walking and cycling will no longer count against them in appraisals.
Senior county officials believe the DfT has introduced ‘real values’ to capital projects which encourage modal switch in the New approach to transport appraisal, including the health benefits of walking and cycling schemes.
In future, any expected addition or reduction in taxation raised by transport schemes would need to be treated in appraisals as a pro or con for the Government, not for society as a whole.
The DfT stressed, however, that attaching a monetary value to the advantages to society of sustainable transport schemes would outweigh the disadvantages caused by loss of tax revenue – particularly when the health benefits of measures that promote physical fitness are factored in. An appraisal would estimate positive monetary impacts of about 7p for each kilometre of commuter travel which switches from the car to the bicycle, the DfT highlighted, giving a ‘very strong case’ for investing.
The DfT also agreed with a call from the Campaign for Better Transport that the size of time savings for individual trips should be disaggregated. This would make it clear whether it was thousands of people saving only one minute, barely valued by most drivers, according to government research.
But the DfT did not make any decision on calls to give a greater monetary value to the damage caused by carbon emissions by transport projects.
It promised to release new advice in the summer on how to report climate change impacts, and said a new ‘shadow price’ for carbon was being calculated. Research has suggested that the 5-6p per litre negative value given to the CO2 emissions generated by transport projects was too low to counteract the positive value of 55-60p per litre for fuel duty (Surveyor, 21 February 2008).
Brian Smith, president of the CSS, said: ‘These are important changes which the CSS welcomes. The new appraisal could well concentrate minds on more sustainable schemes, which could rise up local authorities’ priority lists.’
But Stephen Joseph, the Campaign for Better Transport’s executive director, while welcoming giving weight to health benefits, said: ‘There is still too much priority given to tiny time savings for motorists, and not enough on reducing carbon emissions and protecting landscapes.’
• NATA Refresh: Appraisal for a sustainable transport system. : www.dft.gov.uk/consultations/archive/2008/consulnatarefresh/natarefresh2009.pdf
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