MAY/JUNE 2012
MAY/JUNE 2012
Analysis
with private finance – but with a toll charged motorists for their use. Given that the existing motorway network accounts for just 3 per cent of all UK roads by length, but a third of all traffic, there is obvious scope to improve driving conditions and speed for those on business and perhaps willing to pay extra. But any firm developments are years – if not a decade or so – away.
Foster + Partners’ illustration of the Thames Hub estuary airport project 30
parties on a range of policy questions. Results were due to be published at the end of March this year along with a draft policy framework for implementation in the spring of 2013. But George Osborne provided a surprise in the Budget by announcing that this draft would not now be published “until the summer”, with more consultation to come. David Cameron has dropped public hints that while a new runway at Heathrow may still be off the agenda, expansion elsewhere in the south- east – possibly at Gatwick which is being talked up as a “business- friendly” airport – is potentially back on. Consideration in this summer’s draft policy document may also be given to proposals for a new airport being built in the Thames estuary. While this apparent softening of the coalition’s stance on airport expansion may only be pragmatic politics, there has actually been a more significant shift in attitude towards the so-called “mixed-mode” utilisation of Heathrow’s existing runways. This allows aircraft to take off and land on the same runway – although sounding rather scary to nervous flyers, this increases the number of flights that can be handled. Although the coalition initially excluded mixed-mode operation, it accepted the findings of the South East Airports Taskforce last summer to carry out trials on allowing mixed-mode at times when Heathrow capacity was stretched to the limit. An initial four-month trial was completed in February this year, with another planned for the summer when Heathrow will certainly be fully stretched during the Olympics. Whether it becomes permanent will depend on analysis of the trials, especially the impact on local residents.
TRACK RECORD
The government has a better track record over the past two years on
implementation in the spring of 2013. But George Osborne provided a surprise in the Budget by announcing that this draft would not now be published “until the summer”, with more consultation to come. David Cameron has dropped public hints that while a new runway at Heathrow may still be off the agenda, expansion elsewhere in the south- east – possibly at Gatwick which is being talked up as a “business- friendly” airport – is potentially back on. Consideration in this summer’s draft policy document may also be given to proposals for a new airport being built in the Thames estuary. While this apparent softening of the coalition’s stance on airport expansion may only be pragmatic politics, there has actually been a more significant shift in attitude towards the so-called “mixed-mode” utilisation of Heathrow’s existing runways. This allows aircraft to take off and land on the same runway – although sounding rather scary to nervous flyers, this increases the number of flights that can be handled. Although the coalition initially excluded mixed-mode operation, it accepted the findings of the South East Airports Taskforce last summer to carry out trials on allowing mixed-mode at times when Heathrow capacity was stretched to the limit. An initial four-month trial was completed in February this year, with another planned for the summer when Heathrow will certainly be fully stretched during the Olympics. Whether it becomes permanent will depend on analysis of the trials, especially the impact on local residents.
TRACK RECORD
The government has a better track record over the past two years on rail. The new £16 billion pan-London Crossrail line now seems too far along to be cancelled before the first stage of operation starts in 2018. Although, in another example of the lack of joined-up thinking, Crossrail does not connect directly with T5 at Heathrow, nor the Eurostar at St Pancras.
rail. The new £16 billion pan-London Crossrail line – with the boring of its huge underground tunnels currently disrupting much of central London’s traffic above ground – now seems too far along to be cancelled before the first stage of operation starts in 2018. Although, in another example of the lack of joined-up thinking, Crossrail does not connect directly with T5 at Heathrow, nor the Eurostar at St Pancras.
The government’s track record over the past two years suggests it is in no mood to be generous towards the business travel community
The go-ahead for the proposed High Speed 2 link between London and Birmingham has also been one of the coalition’s main transport achievements so far, although given that the first stage will not become operational until at least 2026, there is plenty of scope for some future administration to derail it.
Justine Greening, however, is due to outline proposals in the
autumn for the line’s extension from Birmingham to cities further north, such as Leeds or Manchester, along with a potential direct Heathrow link (missing from the first stage).
ON THE ROAD
While much of the focus during the coalition’s first two years has been on air and rail, the roads have been largely ignored. In an unexpected move, however, the Prime Minister has asked the Treasury and DfT to explore “new ownership and financing models for the national roads system and to report progress to me in the autumn”.
The move could see new motorways and other roads built
PICKING UP THE TAB Yet the potential expansion of toll-roads in Britain highlights the fact that improving the ability of those travelling on business to do their job does not come without a cost – with companies left to pick up the extra tab.
Admittedly, the coalition has been faced with having to deal with the deficit amid economic uncertainty, especially in the eurozone. But the government’s track record over the past two years suggests it is in no mood to be generous towards the business travel community.
Apart from higher APD – which penalises business travellers flying in premium cabins hardest and is set to continue to rise at least until 2016 – travel buyers have been hit by higher air fares caused by increased airport fees charged to the airlines, as well as the EU’s Emissions Trading Scheme levy on airlines. IATA says this will cost the airline industry an extra £1 billion this year, an increase which will be passed on to passengers.
Other hikes in the pipeline
include an extra 3p a litre duty on petrol in August despite rising fuel prices caused by the oil price spike. Rail travellers also faced a 5.9 per cent average increase in fares last January (more for first class travel), with another inflation-plus 1 per cent due at the start of next year. And the cost of parking a car at some rail stations increased by 30 per cent at the start of this year, although the average was about 5 per cent.
Perhaps one of the most puzzling aspects of the coalition’s seemingly laissez-faire attitude towards
business travellers is that in spite of its strategy for recovery being driven by increased economic growth, not more is being done for those whose job it is to go out and win business and generate that growth. So, in this respect, the mid-term report for the coalition is probably: shows promise, but must try harder. ■
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