London congestion charge to rise to £18 – and electric vehicles will have to pay

📊 Business News Analysis: Our editorial team has analyzed recent developments from theguardian.com in the Business sector. This report covers key insights related to and emerging industry trends that professionals should monitor closely.

The Business landscape is evolving, with recent reports indicating notable changes. Sources indicate that london’s congestion charge will rise by 20% in January from £15 to £18 and electric vehicle drivers will be liable to pay to enter the heart of the capital for the first time. EVs will no longer be exempt from the levy, Transport for London stated, but will pay a lower rate. Electric car drivers will get a 25% discount, paying £13.50 a day, while electric vans and HGVs will pay £9 – 50% of the full charge.

Sources indicate that motoring groups criticised the changes as a backward step. The London mayor, Sadiq Khan, stated that without the shake-up, another 2,200 vehicles would be driving in the zone on an average weekday, making it no longer fit for purpose. Evidence suggests that the charge was introduced in 2003 with the aim of reducing traffic on London’s congested streets.

Six times as many electric vehicles – almost 120,000 – are now registered to drive in the zone compared with 2019, when the full discount for EVs was introduced. It was scheduled to expire at the end of the year. Khan stated: “Keeping London moving by reducing congestion is vital for our city and for our economy.

While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose, and sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.”
He said substantial incentives would remain in place for Londoners who switch to cleaner vehicles. The 90% discount for all residents of the zone will only apply to EV owners from March 2027, and car clubs for vehicle sharing will be given a full exemption for EVs. According to reports that the moves were criticised, however, for making EVs less attractive.

Labour’s transport spokesperson on the London assembly, Elly Baker, stated it would “make it harder for people to go green when they need a vehicle to do their jobs”, and that minicab drivers who had “done the right thing by switching to an EV will be penalised by this”. The AA president, Edmund King, urged Khan to reverse the decision. “This is a backward step which sadly will backfire on air quality in London,” he stated. “Many drivers are not quite ready to make the switch to electric vehicles so incentives are still needed to help them over the line.

Sources indicate that the mayor needs to reconsider to continue to help more essential van and car journeys in the capital go electric.”
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The congestion charge applies to central London between 7am and 6pm on weekdays, and between noon and 6pm at weekends and on bank holidays.

There is a separate levy for London’s ultra-low emissions zone (Ulez), which covers all of Greater London. The oldest, most-polluting vehicles have to pay a daily charge to drive in the area – £12.50 for cars and more for older coaches and lorries – although the majority of cars are exempt. According to reports that speculation is growing that EV drivers may face additional charges across the UK. The chancellor, Rachel Reeves, is reportedly considering a pay-per-mile scheme for EVs in her November budget, given that the vehicles are not liable for fuel duty.

As the situation continues to develop, industry participants in Business will likely monitor outcomes closely.

— Based on reporting from theguardian.com

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Market Impact: These developments in the industry may significantly influence market dynamics. Industry experts recommend monitoring these trends closely for strategic planning purposes.

Analysis Note: This comprehensive overview synthesizes current market intelligence from theguardian.com regarding industry developments and related sectors. Stay informed about ongoing developments in this rapidly evolving landscape.