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Home»Economy & Business»London congestion cost set to rise by 20% underneath TfL plans
Economy & Business

London congestion cost set to rise by 20% underneath TfL plans

By Admin27/05/2025No Comments3 Mins Read
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London congestion charge set to rise by 20% under TfL plans
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Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.

London’s transport authority has proposed a 20 per cent improve within the congestion cost and ending a residents’ low cost for non-electric automobiles, in modifications the physique stated would preserve the charge’s effectiveness.

Underneath the proposals, that are topic to public session, the usual congestion cost would rise from January 2 subsequent yr to £18 per day, from £15 presently.

The plans would additionally get rid of a 90 per cent low cost for drivers who stay within the congestion cost zone, in central London, until they’ve a pure EV.

The announcement comes as Transport for London continues its efforts to revive its funds, which have been battered by the autumn in site visitors through the coronavirus pandemic. An individual near TfL stated the modifications have been anticipated to generate a further £30mn in income throughout 2026.

TfL required a number of short-term bailouts from the earlier Conservative authorities and has demanded that chancellor Rachel Reeves implement a brand new, long-term funding deal for the organisation on the spending overview in June.

The congestion cost, levied on automobiles coming into central London between 7am and 6pm Monday to Friday and between midday and 6pm at weekends, was controversial when it began in 2003 however has since change into largely accepted. The cost was final raised in 2020.

Among the many proposed modifications is a shift within the focus of the cleaner automobile low cost, which exempts all EVs from the cost.

From January 2, the low cost could be restricted to 50 per cent for electrical vans and heavy items automobiles and 25 per cent for electrical automobiles. It might then be additional lowered from March 2030 to 25 per cent for vans and 12.5 per cent for automobiles.

The transfer to cost EVs is a response to a pointy development within the variety of such automobiles coming into central London, which has undermined the cost’s effectiveness in combating congestion.

Seb Dance, deputy mayor for transport, stated TfL’s modelling steered that, with out the introduction of a cost for EVs, an additional 2,200 automobiles would drive within the congestion charging zone subsequent yr on a mean weekday.

“Retaining London shifting by decreasing congestion is important for our metropolis and for our economic system,” Dance stated. “The congestion cost has been an enormous success since its introduction, however we should guarantee it’s match for goal.”

The Conservative opposition within the London Meeting has campaigned in opposition to elements of Labour mayor Sadiq Khan’s roads coverage.

Keith Prince, the Conservatives’ transport spokesperson on the meeting, stated Labour couldn’t cease themselves “hammering” drivers within the metropolis and cited the widespread introduction of 20mph velocity limits, a charging system for probably the most polluting automobiles and the closing of some neighbourhood streets to via site visitors as examples.

“These proposed modifications are going to interrupt the backs of Londoners who has to journey through street — both for work, due to incapacity, or for different causes — by slowly ramping up the fee,” stated Prince.

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