Smart Transport

The radical alternative revenue streams for transport funding

Urban view with skyscrapers, blurred train and traffic light trails. City of London urban scene in Canary Wharf with busy road, metro train and lights of financial district on background.

What are some of the alternative revenue-raising options in an era of electric cars, usership, autonomous vehicles and MaaS?

Land Value Capture

Improving transport generally increases the value of land, property and businesses in the affected area and charging a Community Infrastructure Levy, can help pay for improvements. 

Around 45% of the funding for Crossrail 2 is expected to be sourced by various forms of value capture.

Manchester has adopted a scheme as part of its wider transport strategy.

The ‘Earn Back’ model uses a formula linked to rateable values to provide a revenue stream that could top £1 billion a year over 30 years predicated on Gross Value Added by transport improvements. 

Road Naming

Encouraging private business to sponsor roads via the Adopt-A-Highway programme in the US has seen household names like Netflix, Disneyland and Dunkin’ Donuts pick up the bill for management and maintenance of sections of the road network to ensure they remain clean, tidy and pothole-free. 

This brings the discipline and accountability of the private sector to roads maintenance, hopefully making inroads into the sort of backlog seen on UK roads.

AA President Edmund King is convinced it could work in the UK after experiencing it first hand in the USA: “If a big corporation has paid for its branding to be associated with a major highway, they are going to make sure the driver experience is positive.”

Voluntary Road Pricing

The history of road pricing is littered with schemes and proposals which were abandoned in the face of public hostility, but making road pricing optional offers a different route to a fairer system of motoring taxation.

Clearways suggests this route to road pricing and a number of local trials are taking place in the US.

The state of Oregon has been trialling the My OreGo system with 1,600 volunteers since 2015. 

Participants get their fuel duty refunded and can instead opt to pay either a flat mileage rate or a variable on- and off-peak rate recorded by an in-car device.

Smaller scale schemes have been trialled in California, Washington, Delaware and Pennsylvania.

An Oregon Department of Transportation spokesperson says: “We’ve proved that the scheme works and we can charge motorists per mile and direct their payments to the state treasury, but there is still some way to go before this sort of scheme can become mainstream.

“The numbers of participants has dwindled recently and it tends to attract early adopters who are curious about the scheme or people with a special interest in transport.

“They are keen to give it a go but when they do the maths, most drivers will actually be slightly worse off using the system as it is currently configured.

So there’s no real incentive to switch to OreGo and, in effect, they are doing it out of the goodness of their hearts."

Read Mark Sutcliffe's full article on the smart transport funding crunch from Smart Transport Journal

Comment as guest

Login  /  Register


No comments have been made yet.

Office Address
  • Smart Transport
    Media House
    Lynch Wood
    PE2 6EA
Join the community
  • Register to receive our digital content / products and service / information about our events.
  • Register now.
  • Conference


Welcome to Smart Transport

Welcome to the Smart Transport website, keeping you up-to-date with the latest news, insight and reports from policymakers and thought leaders.

The Smart Transport brand connects policy to solutions by bringing national government and local authority policymakers together with private sector organisations.

Contact Ernest Olaseinde for more information.

© Bauer Consumer Media Ltd
Media House, Lynch Wood, Peterborough, PE2 6EA - Registered number 01176085 IPSO regulated logo


Smart Transport members

Smart Transport board members


Please note:
By submitting any material to us you are confirming that the material is your own original work or that you have permission from the copyright owner to use the material and to authorise Bauer Consumer Media to use it as described in this paragraph. You also promise that you have permission from anyone featured or
referred to in the submitted material to it being used by Bauer Consumer Media. If Bauer Consumer Media receives a claim from a copyright owner or a person
featured in any material you have sent us, we will inform that person that you have granted us permission to use the relevant material and you will be responsible for paying any amounts due to the copyright owner or featured person and/or for reimbursing Bauer Consumer Media for any losses it has suffered as a result.