03Implementation in the UK

London is the only UK city that has levels of public transport ridership comparable with its European counterparts. This is the result of a combination of policies that have been introduced over many years including many of the measures discussed above.

Key factors in London’s success persuading people to use public transport include the creation of the Greater London Authority and an overarching transport strategy for the city, establishing Transport for London to manage and integrate the city’s transport network, and improving public transport at the same time as disincentivising driving.

Specific policies implemented in London along with their effects are highlighted below.

Policy – Densification

The economic geography of London makes public transport more appealing than in other parts of the UK. Table 1 shows the density of people living in the city is higher than in other urban areas and an unusually high 47 per cent of its economy is located at the centre.77 This means that up to 1.5 million people travel into central London on a typical workday, a volume of commuters that makes doing so via private transport largely impractical.

Densification is a key part of the London Plan. It recognises that densification supports businesses in clustering, maximising job opportunities and providing critical mass for social infrastructure. The plan also recognises that places best suited to high density property developments are those where “public transport options are available”.78

An example is the Battersea and Nine Elms redevelopment. By using tax incremental financing, the GLA has been able to fund the £1 billion cost of the London Underground Northern line extension to Battersea Power Station and Nine Elms. This has involved borrowing against anticipated business rate receipts in the designated area around the development.79 On completion, 18,000 additional homes will be within 15 minutes reach of central London.

Over the next decade Transport for London, in partnership with Network Rail, plans to build an additional 20,000 homes around stations. A key advantage of London compared to other UK cities is that the local government structure brings transport and planning functions together for the entire city. As the Mayor of London can make both planning and transport decisions and does not require agreement from neighbouring authorities, it makes densification an easier policy to realise.

Policy – Integration

London’s integrated transport system is partly due to the fact that while most of Britain deregulated local bus networks London was able to retain control and ownership of its services.

London’s bus network of approximately 675 routes is franchised, allowing Transport for London to plan routes and set service levels. Underground rail and tram services are wholly managed by TfL while the London Overground, Docklands Light Railway and Elizabeth line are run by private operators with TfL specifying service levels. As a result, even though TfL does not operate all its own services, it is able to plan them strategically. Multiple modes provide opportunities for cross-subsidy; TfL uses revenue from its rail operations to support the bus network, which runs at a loss.80

This not only allows timetable integration between different modes but gives TfL the ability to provide multi-mode tickets with fare caps. This began with the Oyster card in 2003 but was expanded to support contactless payments in 2012. By this point Oyster cards were used for 80 per cent of all journeys made using public transport in London.

Policy – Prioritising public transport

TfL manages five per cent of London’s road network and which accounts for 30 per cent of the city’s traffic. While it wants to reduce delays for all road users the organisation also uses its traffic management remit to enhance its bus network.

The Mayor has recently announced an additional £10 million for the Infrastructure Coordination Service, which oversees roadworks carried out on the TfL road network. It is estimated that, since its launch in 2019, the service has reduced the time taken to complete roadworks by 1,254 days.81 That said, while public transport prioritisation can work (as highlighted in Case Study 5), it is important that these measures are properly maintained and are supported by other policies to reduce congestion.

Policy – Discount ticketing and fare caps

TfL can provide a daily and weekly cap on its services which applies across modes. This is a benefit of TfL having ownership of London’s entire public transport system. The daily cap alleviates worries for users about overspending and reduces confusion regarding the cost of journeys.

No major discounted ticketing scheme has been introduced, but TfL offers a Hopper fare for bus users. This allows users to travel on an unlimited number of buses in one hour at no additional cost. Following the introduction of the Hopper fare it is estimated bus trips increased by 5 per cent with a rise of 8 per cent for follow up-journeys.82

Policy – Road pricing

London has been the first mover in the UK for road pricing. The congestion charge, inspired by Singapore’s Electronic Road Pricing (see Case Study 9), was launched in 2003. It was expanded to West London in 2007 but this was reversed in 2011. The purpose of the scheme is to reduce congestion within central London which it has done by 30 per cent. It has also helped boost bus travel by 33 per cent in the two decades since its introduction.83

Importantly, the charge was rolled out alongside an expansion of the public transport network to make giving up car use more attractive. TfL created 300 extra bus routes to provide affordable alternatives to driving and to help mitigate opposition to the scheme.84

The Ultra Low Emission Zone (ULEZ) was introduced in 2019 and expanded to the North and South Circular roads in 2021 with a further expansion in August 2023. Rather than addressing traffic congestion the primary purpose of the ULEZ is to improve air quality across London. It is estimated that 95 per cent of vehicles across inner and outer London are now compliant with clean air standards, an increase of 56 per cent since 2017.85

Road pricing is not a reliable revenue generator because income declines as compliance improves. However, to encourage support for the congestion charge and counter claims of it being a money-making exercise, it is a legal requirement that any surplus revenue is ringfenced for sustainable transport investment.

Conclusion

London’s success in encouraging people to use public transport has been achieved through a combination of different policies. By being able to exert greater control over its public transport network the city authorities have been able to integrate services successfully and provide multi-modal tickets with daily fare caps. Alongside this it has been able to encourage densification, and shift drivers from their cars to public transport. If the UK’s largest cities are to equal their European counterparts in terms of share of commutes by public transport, a similar combination of policies used in London will be needed.

Footnotes

  • 77 Rodrigues G and Bridgett S (2023), Capital losses: The role of London in the UK’s productivity puzzle, London: Centre for Cities
  • 78 London Plan (2021) p15
  • 79 Mayor of London (2022), Questions to the Mayor: Tax Increment Financing, London: Mayor of London
  • 80 For 2023-24 it is expected that TfL’s bus network, along with street and other operations, will run a deficit of £641 million but can be subsidised from other revenue streams. For further details, see TfL Board (2023), 2023/24 TfL Budget, London: TfL
  • 81 BBC News (2023), London scheme to reduce roadworks impact gets £10m funding boost, London: BBC News
  • 82 Offiaeli K and Yaman F (2023), The effect of an unconventional fare decrease on the demand for bus journeys: A regression discontinuity approach, Journal of Public Transportation, Volume 25
  • 83 TfL (2023), Congestion Charge marks 20 years of keeping London moving sustainably, London: Transport for London
  • 84 Badstuder N (2018), London congestion charge: what worked, what didn’t what next, The Conversation
  • 85 Tfl (2023), New report shows ULEZ expansion is working with 95 per cent of vehicles across inner and outer London now compliant with clean air standards, London: TfL