London Mayor Sadiq Khan has indicated potential reservations about Transport for London's (TfL) plans to significantly reduce the Congestion Charge exemption for electric vehicles (EVs) owned by businesses from next year. Currently, the Cleaner Vehicle Discount (CVD) exempts EVs from paying any fees when driving within the Congestion Charge Zone in Central London. However, this full exemption is set to end this December, with proposals on the table to cut the discount to just 25 per cent for electric cars and 50 per cent for heavier electric vehicles.

TfL’s consultation on these changes has met strong opposition from Assembly Members, MPs, industry leaders, and environmental groups who warn that scaling back the exemption could prompt businesses and car clubs to revert to petrol and diesel vehicles, undermining efforts to reduce emissions. There are also concerns that car clubs, which promote shared vehicle use, could become financially unviable for consumers if businesses pass on the increased costs.

Mayor Khan has acknowledged that while the original intention was to end the CVD entirely by December 2025, there are valid concerns regarding businesses that have already invested in EVs and those who use car clubs. He emphasised during a London Assembly session that the issue of rewarding such early adopters has been “received loud and clear” and indicated TfL will consider these points in their final report before he makes a decision as Chair of TfL. He characterised the current proposals as a "big concession" given that the full exemption had been in place for seven years.

TfL estimates that if the CVD is not reduced, around 2,200 additional vehicles would enter the Congestion Charge Zone daily, thereby increasing congestion. They also expect the change to generate around £40 million in additional annual revenue which would support London’s transport needs. The broader objective, according to TfL and Mayor Khan, remains managing traffic levels in one of the busiest parts of the capital, as the congestion charge primarily aims to curb traffic rather than serve solely as an air quality mechanism.

The debate highlights the complex balance between supporting London’s transition to cleaner vehicles and managing urban congestion. Environmental advocates argue that removing the exemption risks slowing EV adoption and deteriorating air quality, while transport policymakers caution that the exemption could dilute congestion reduction efforts if all vehicles become charge-exempt. Critics including transport spokesperson Elly Baker and Labour Assembly Chair Len Duvall have called for continued incentives to encourage the growth of cleaner vehicle usage, warning that the planned changes could disincentivize switching away from polluting vehicles.

Additional voices in the debate include former Top Gear presenter Quentin Willson, who has urged Mayor Khan not to impose the congestion charge on EVs. Willson argues that while the scheme targets congestion, having EVs in traffic queues is less environmentally harmful than petrol or diesel vehicles and that maintaining the exemption serves public health interests in the long term.

TfL maintains that Central London boasts excellent public transport and sustainable travel options, encouraging shifts away from car use where possible. The final decision on the Cleaner Vehicle Discount proposal will follow a detailed assessment of all consultation feedback, taking into account the divergent views from stakeholders, environmental groups, and the business community.

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Source: Noah Wire Services