New £3.50 charge to drive into Greater London considered

Mayor of London Sadiq Khan looks for ways to raise extra £500 million a year amid Transport for London’s financial woes

Congestion charge zone

A new £3.50 daily charge for non-residents driving into Greater London is being considered by the city’s mayor.

Following severe financial difficulties at Transport for London (TfL) - not helped by the loss of tube fares during the Covid-19 pandemic - and an independent financial review, Sadiq Khan has argued that the £500 million annual Vehicle Excise Duty revenue from Londoners’ cars should be paid to TfL rather than the Treasury.

If this doesn’t happen, the Mayor of London instead wants to implement a ‘Greater London Boundary Charge’ that would see non-Londoners have to pay £3.50 a day to drive in to most of the area inside the M25. The charge would be in addition to the Congestion Charge and the ULEZ fee, which cover a far smaller area of the capital - though the latter is set to expand in 2021.

TfL officials are conducting a feasibility study into the charge, which would raise an estimated £500 million a year and would also reduce road traffic in the capital by 10 to 15 per cent, if it were introduced.

All income from the charge would be reinvested in London’s transport network via TfL. As well raising revenue, though, the proposed £3.50 fee could encourage people to use alternative forms of transport other than the car, thereby reducing emissions.

Addressing the proposals, Sadiq Khan said: “Londoners pay £500m worth of Vehicle Excise Duty every year, which is then spent on maintaining roads outside the capital. It is not fair on London that our drivers should subsidise the rest of the country’s roads and get nothing in return. The Government must allow London to retain its share of VED and to support the capital’s transport system properly as in other world cities.”

He added: “If ministers aren’t prepared to play fair, then we will need to consider other options to address this unfairness, such as asking people who live outside London and make journeys into Greater London by car to pay a modest charge, which would be reinvested in London’s transport network. As the independent review shows, we can’t go on expecting public transport fare-payers to subsidise the costs of road maintenance.”

Do you agree with the London Congestion Charge price hike? Let us know your thoughts in the comments section...

Recommended

New car delivery times 2022: how long will you have to wait?
New car waiting times
Features

New car delivery times 2022: how long will you have to wait?

No one likes having to wait for their new car so we called key manufacturers for to get their latest UK lead times
11 Mar 2022
MINI stops production in Oxford until 18 March
MINI
MINI

MINI stops production in Oxford until 18 March

Semiconductor shortage and war in Ukraine cited as reasons for plant closure 
9 Mar 2022
Car dealer for the day: inside car sales and aftersales at a franchised showroom
Car dealer for a day - Cupra
Features

Car dealer for the day: inside car sales and aftersales at a franchised showroom

We play the part of car dealer and find out how dealerships have coped with Covid, the semiconductor shortage and new ways of doing business
28 Feb 2022
London Congestion Charge explained
Congestion Charge
Tips & advice

London Congestion Charge explained

All the facts about the £15 charge for driving into central London including a map, how to pay and how to check if you need to...
16 Dec 2021

Most Popular

“Mid-sized electric cars are way beyond the financial reach of most mums and dads”
Opinion - electric car prices
Opinion

“Mid-sized electric cars are way beyond the financial reach of most mums and dads”

Mike Rutherford thinks the industry needs to face the fact that a lot of people can’t afford a brand new factory-fresh car
16 May 2022
Best electric cars to buy 2022
Best electric cars
Electric cars

Best electric cars to buy 2022

There are more electric cars than ever to choose from, so we've picked some of the best you can buy in the UK now
28 Apr 2022
Tipo 184: on the road in the Mazda MX-5 based kit car
Tipo 184 kit car front
Features

Tipo 184: on the road in the Mazda MX-5 based kit car

Inspired by classic Grand Prix racing cars, Darren Collins has created a model that faithfully recreates the originals, but with a twist - it’s actual…
11 May 2022