The Mayor of London has suggested that businesses in London who purchased electric vehicles (EVs) should be “rewarded” for making the transition rather than be forced to pay Congestion Charge fees from next year.
The Cleaner Vehicle Discount (CVD), which has exempted EVs from paying any fees when driving in the Congestion Charge Zone in Central London, will come to an end this December.
Transport for London (TfL) is currently consulting on proposals which would slash the 100 per cent CVD to just 25 per cent for electric cars, and 50 per cent for heavier electric vehicles.
Assembly Members, MPs and industry leaders have warned that the changes will lead to traders and car clubs simply switching back to petrol and diesel vehicles. However the Mayor said the message had been “received loud and clear” that businesses should still get an attractive discount.
On Thursday (September 11) the Mayor defended TfL by saying that a decision to end the CVD entirely had been in place for seven years and that the proposals to reduce it represented a “big concession”.
TfL estimates that, without the CVD change, there will be 2,200 more vehicles driving in the Congestion Charge Zone daily. The changes will also raise an estimated £40million per year for the transport body.
However, as the Chair of TfL, Sir Sadiq will make the final decision once the consultation concludes.
“In 2018 the intention was for the CVD to end completely in December 2025,” he told the London Assembly during Mayor’s Question Time.
“But there have been small businesses who have invested in EVs and the question is whether there can be some way of rewarding them post-December, and similarly for those who chose not to be car owners and instead use car clubs. I’m sure TfL will look into those in the report they will prepare for me. It’s a point well made and received loud and clear.”
In recent weeks TfL’s proposals have come under heavy criticism from stakeholders, who claim the continued Congestion Charge exemption is needed to see more EVs on London’s roads. Shared transport charity Collaborative Mobility UK (CoMoUK) have said car clubs will become “unaffordable” for consumers if businesses need to pass the additional cost on.
Last week the Commons Transport Committee heard that the move could put the industry “on the brink”.
The Labour group on the London Assembly has also been highly critical of the changes, with transport spokesperson Elly Baker telling the Local Democracy Reporting Service (LDRS) that the plans are “counterproductive”.
Len Duvall, Chair of the London Assembly and Leader of the Labour Group, said on Thursday: “We are concerned, on our side, that many people that have either moved or are thinking about moving to electric might be stalled because there is no longer an incentive for them to do so. We want to see the encouragement of cleaner vehicles continue.”
A TfL spokesperson said: “The Congestion Charge has been in place since its introduction in 2003 to manage traffic and congestion in the central one per cent of London during the busiest times of day.
“Under these proposals, we are also proposing a new Cleaner Vehicle Discount for those who do need to drive in the zone so they would still be able to benefit from a discount if they drive an electric vehicle, with a greater reduction for journeys that are harder to switch to walking, cycling and public transport, such as those made by vans.
“Central London is one of the best-connected places in the world with high-quality sustainable transport options. We are now carefully analysing all consultation responses and will be working on a detailed response to issues raised.”
