When it comes to transport infrastructure, much of the UK’s policy and spending has been based on a simple but flawed idea: more roads mean more economic opportunity. Yet growing evidence shows that investing in active travel — cycling and walking — delivers far greater returns (1).
In the early years of car use, it was clear to see the economic benefits of more roads. More distance can be covered, opportunities widen, and the economy expands. But is that still the case, and do they lead to a better quality of life?
Today, we examine how active travel outperforms traditional road investment in economic outputs like retail spending, employment, health savings, and productivity and why it’s time to rethink how we measure success. Traditionally, any budget for Active Travel has been measured via non-economic outputs (environment, quality of life), whereas roads have been measured purely by economic output.
Recently, governments’ research studies have started to measure active travel measures via their economic output. The data is compelling, yet budgets are tiny vs road budgets. Why is this? Is it purely because change is difficult? Let’s examine the economic potential of active travel.
Quick Comparison: Active Travel vs Roads
| Measure | Active Travel (Cycling & Walking) | Road Infrastructure |
| ROI | £5–£13 return for every £1 invested (1) | Often under £2 return per £1 invested (6) |
| Retail Spending Impact | +30% higher retail spend in improved areas (2) | No consistent boost; congestion can harm retail |
| Employment | Up to 18 jobs created per £1 million invested (3) | ~7 jobs created per £1 million invested |
| Health Savings | ~£1 billion annually saved (5) | No direct health benefit; pollution and inactivity costs rise |
| Congestion Impact | Reduces local congestion with good design (4) | Induced demand worsens congestion |
| Productivity Gains | Improved workforce health and mental well-being. | Minimal, unless freight bottlenecks are solved |
Road Traffic Growth and Budget Expansion Since the 1960s
Although successive governments have invested heavily in new roads, the evidence shows that building more roads hasn’t solved congestion — and may have worsened it.
The last 60 years reveal a clear pattern: more roads lead to more cars. In the early days of automobile use, you can see why this benefitted the economy, but have we reached the tipping point where we are now seeing diminishing returns from an economic, health, and lifestyle perspective? It certainly seems that way. benefited
Since 1960, the UK has seen an explosion in car ownership and road traffic:
| Year | Cars on Road (millions) | Traffic Volume (billion miles) |
| 1960 | ~5 | ~80 |
| 1970 | ~11 | ~130 |
| 1980 | ~15 | ~150–180 |
| 2000 | ~23 | ~300 |
| 2019 | ~39 | ~350+ |
Yet congestion remains widespread:
| Decade | Congestion and Traffic Conditions |
| 1960s | Rapid growth led to rush-hour jams; Buchanan Report (1963) warned of gridlock (10). |
| 1980s | Motorways like the M25 quickly filled up with traffic. |
| 2000s | Persistent delays despite road expansions. |
| 2020s | Congestion remains chronic on A-roads and motorways. |
Road Spending Has Exploded
| Period | Major Programme | Estimated Budget |
| 1960s | Launch of the national motorway network | ~£1 billion |
| 1989 | “Roads for Prosperity” (500+ schemes) | ~£23 billion (11) |
| 2015 | Road Investment Strategy 1 (RIS1) | ~£15 billion |
| 2020 | Road Investment Strategy 2 (RIS2) | ~£27 billion (12) |
Despite these huge budgets, congestion problems persist.
Induced demand means new road capacity quickly fills up, repeating the same cycle.
Induced Demand and Congestion
Induced demand is a well-documented phenomenon: expanding road capacity encourages more driving until congestion returns to previous (or even worse) levels.
- After the M25 motorway widening between Junctions 12–15, congestion initially eased — but within just 2 years, traffic volumes rose by 23%, and delays returned (13).
- A landmark study from the Transport Research Laboratory (TRL) found that every 10% increase in road capacity typically results in a 6–10% increase in traffic volumes over just a few years (14).
- The DfT’s own research in the Standing Advisory Committee on Trunk Road Assessment (SACTRA Report, 1994) confirmed that new roads can generate new traffic, especially in urban areas (15).
Meanwhile, active travel infrastructure (bike lanes, safe walking routes, low-traffic neighbourhoods):
- Absorbs short car trips, which are often the most congestion-causing journeys.
- Reduces local traffic volumes sustainably without fuelling more driving.
- Provides a lasting congestion benefit, especially in urban centres.
Key takeaway:
Building more roads often temporarily eases congestion, but induced demand soon negates the benefits, at huge financial and environmental cost. Think about it. If a new road speeds up travel to a specific place, then people from further afield will come. The quicker journey stretches the ability for someone slightly further away to seek opportunities in a new area, adding to the already clogged roads.
Investing in walking and cycling, on the other hand, cuts congestion permanently for a fraction of the cost and promotes conscious, localised living. A society where kids can safely travel to school via bike or on foot, or walk to the shops, sports clubs. Where communities are built and people actually spend time in the area where they live.
Economic, social, cultural, health & employment benefits of active travel:
Rather than pouring billions into roads that generate more traffic, investing in walking, cycling, and public transport offers far better returns:
- Reduces congestion sustainably
- Cuts public health costs
- Strengthens local economies
- Supports a more liveable, low-carbon future
In short: more roads = more cars.
More active travel = healthier, less congested communities.
Retail Spending and Town Centre Revival
Contrary to common belief, drivers are not the customers who spend the most, particularly when it comes to local communities.
| Customer Type | Monthly Retail Spend |
| Cyclists and Pedestrians | 40% more than drivers (2) |
| Drivers | Lower total spend, fewer frequent visits |
- Cyclists and pedestrians spend more cumulatively.
- Streets made pedestrian- and cyclist-friendly see retail sales rise by up to 30%.
Active travel infrastructure = healthier high streets and bustling local economies. When talking retail, it’s all about ‘footfall’, which is only possible with pedestrianised streets. It promotes local companies over sterile international chains. It promotes entrepreneurship as people will build businesses if they can see a community growing.
GDP Contribution and Local Growth
Short local trips are dominated by walking and cycling. Strengthening this infrastructure:
- Amplifies local GDP by keeping spending close to home. Areas without a high street or localised living will drive to the nearest soulless retail park.
- Reduces reliance on major road networks that often simply redistribute economic activity rather than creating new growth. Local villages will be hollowed out, whereas large retail chains will be posting record profits. It’s merely a retribution of wealth and all the ‘nice to have things’ we all crave in life (coffee shops, local bookstores, a village shop).
Well-designed walking and cycling environments boost local economies without the huge public expense of major highways.
Employment Benefits
| Investment Type | Jobs Created per £1 Million |
| Cycling & Walking | Up to 18 jobs (3) |
| Road Building | Around 7 jobs |
Active travel supports long-term, sustainable employment in construction, bike maintenance, tourism, and retail sectors.
Health Savings
| Health Impact | Active Travel | Road Infrastructure |
| NHS Cost | Reduced by £1 billion annually (5) | Increases due to inactivity and pollution |
| Long-Term Disease Rates | Lowered significantly | Rise in chronic diseases |
| 20-Year Saving Potential | £2.5 billion with 10% modal shift | No equivalent savings |
Inactivity costs the NHS £900 million per year. Active travel could be a major part of the solution.
Active Travel for Children: Walking and Cycling to Secondary School
Obviously, here at Family Cycling, this is a huge priority for us. Encouraging children, especially secondary school students, to walk or cycle to school can have profound economic and social benefits. Our detailed guide, “Walking and Cycling to Secondary School”, explores this in depth.
Key benefits include:
- Reduced Congestion: School-run traffic significantly contributes to peak congestion.
- Improved Public Health: Daily exercise combats obesity and supports healthy growth.
- Boosted Mental Health and Academic Performance: Active travel improves children’s mood and concentration.
- Long-Term Cost Savings: Active children become healthier adults, easing NHS demand and increasing future productivity.
Case Study: Seville, Spain — A City Transformed by Active Travel
In the early 2000s, Seville was a car-dominated city with minimal cycling infrastructure. However, between 2006 and 2010, the city invested just €32 million to build a 120km separated cycle network. Key results:
- Retail Activity Boosted along newly pedestrianised and cycle-prioritised streets.
- Air Quality Improved, reducing healthcare costs associated with pollution.
- Congestion fell on local roads without major road expansions.
Critically, this modest investment delivered huge returns compared to the far greater sums typically spent on road expansion projects. Local businesses flourished, and the city’s economic vitality improved, all while reducing car dependency and enhancing livability.
More recently, in 2023, Seville was named the European Capital of Smart Tourism (8), recognising its success in sustainable urban mobility. Seville now boasts the longest network of bicycle lanes and a thriving bike-sharing program.
These active travel initiatives have been credited with continuing to drive economic growth, enhance environmental sustainability, and attract tourism, proving that prioritising walking and cycling can yield long-lasting economic and social dividends.
Success Story: Seville’s Transformation
- €32m invested in cycle infrastructure
- Retail spending rose along cycle-prioritised streets
- Congestion dropped despite a growing population
- Awarded European Capital of Smart Tourism 2023
Final Thoughts
The economic evidence is clear: active travel is not just good for health and the environment — it’s one of the smartest financial investments we can make. But why is it so slow to adopt, even though the majority of evidence is overwhelming? I’d say it comes down to our culture and how it’s ingrained into our minds that cars=efficency.
When councils, governments and the public’s mindset are built like this, it’s hard to shift. How do you undo years of habits which have been built? It’s challenging and can only be done bit by bit. The main thing I wish is that more people tried it. Being outside with everything on your doorstep is a gift, and we should be embracing it.
When we invest in walking and cycling, we unlock:
- More vibrant town centres
- Higher local employment
- Healthier, more productive communities
- Lower congestion
- Stronger local economies
- Safer, healthier commutes for our children
If we want a truly prosperous, resilient future, it’s time to shift the balance. Local journeys should be about bikes and boots and not cars. Leave the roads for those who need them and let’s create a more sustainable, balanced society.
Sources
- Department for Transport (DfT) — Value for Money Assessments
- Living Streets — The Pedestrian Pound (2018)
- Sustrans — Jobs, Growth and Active Travel (2017)
- CPRE — The End of the Road? (2017)
- Public Health England — Everybody Active, Every Day (2014)
- National Audit Office — Road Investment Strategy Reports (2019)
- Family Cycling — Walking and Cycling to Secondary School
- Seville — European Capital of Smart Tourism 2023
- Department for Transport (DfT) – Road Traffic Estimates and Car Ownership Growth
- DfT – Traffic in Towns Report (1963)
- Wikipedia – Roads for Prosperity
- Lexology – Road Investment Strategy 2 Overview
- CPRE – The End of the Road Report
- Transport Research Laboratory (TRL) – Predicting and Managing Induced Traffic
- Better Transport – SACTRA Report Summary (1994)
Last Updated on May 1, 2025 by Ryan
Hello. I am Ryan and along with my wife Beth and our two children Matilda and Barney, we love all things cycling and exploring. We spend our weekends exploring fun places to cycle and discover and wanted to help other people do the same too. There’s no better way to travel than via bike and it’s an amazing activity for the whole family to enjoy.