Transport for London proposes 20 per cent hike to Congestion Charge
Transport for London (TfL) has proposed a fresh hike to the Congestion Charge from January next year, sparking backlash from small business owners.
London’s transport body said it would hike fees from £15 to £18, a 20 per cent increase and the first since 2020, according to an announcement on Tuesday.
Drivers will then be hit with incremental annual increases to the charge as with public passenger transport fares.
Changes to the congestion charge were met with outrage from some business groups, which warned small firms were already “making extremely tough business decisions to remain competitive” and would not be able to absorb the extra costs.
“Businesses will look to charge customers in the charging zone a premium for their business services which will heighten inflationary pressures further,” Michael Lloyd, London infrastructure champion at the Federation of Small Businesses, said.
“The Mayor should immediately reconsider the excessive increase and make it more palatable to struggling small firms.”
However, others focussed on the economic boost of reducing congestion. Polyvios Polyviou, transport programme director at BusinessLDN, said: “Congestion costs the London economy billions a year so tackling traffic by encouraging a shift towards public transport and active travel where possible is essential to keep the city moving.”
The proposals have been launched as part of a consultation kicking off today and running until August 2025.
TfL is also proposing a new cleaner vehicle discount under the changes. The current 100 per cent discount is set to end in January 2026 – from then, new EV drivers will have a 25 per cent discount, while electrric van drivers will have a 50 per cent discount.
The discounts will then fall to 25 per cent and 12.5 per cent respectively, in March 2030.
Lloyd said he was pleased a “partial” discount was being given consideration in the consultation for electric van owners, but he warned this would still mark a significant hike.
Congestion charge a ‘huge success,’ says TfL
Seb Dance, Deputy Mayor for Transport, said: “Keeping London moving by reducing congestion is vital for our city and for our economy.
“The congestion charge has been a huge success since its introduction, but we must ensure it is fit for purpose.
“Sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.
He added: “At the same time we must support Londoners and businesses to use greener and more sustainable travel. That’s why I’m pleased we’re proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles.”
Christina Calderato, TfL’s Director of Strategy, said: “Since it was introduced in 2003, the Congestion Charge has been hugely successful in supporting the move to more walking, cycling and public transport and encouraging the uptake of the cleanest vehicles.
“With these proposed changes we want to make sure it continues to be effective in managing traffic and congestion in central London while providing ongoing support to those who need to drive in the zone to make the switch to an electric vehicle.”