London Mayor, Ken Livingstone, and Transport for London have announced a consultation process looking into a possible raise in the congestion charge. The proposal is to increase the charge from the current all-encompassing £8 fee to £25 for vehicles emitting more than 225g/km. The increase would also automatically be introduced to drivers of cars of over 3,000cc registered before March 2001. Resident discounts would also be nullified if vehicles fall into the high emissions category.
The proposals would see some concessions for low emitting vehicles - those meeting Euro 4 standards and having a CO
2 figure of less than 120g/km receiving a 100% discount. The proposed changes are as follows -
Low-CO2 emitting cars - 100 per cent discount (£0). Includes cars in Vehicle Excise Duty (VED) Bands A and B (less than 120g CO
2 per km) which also meet Euro 4 air quality standard.
The majority of cars - VED Bands C, D, E and those in F with emissions up to 225g CO
2 per km - will continue to pay exactly the same daily charge as at present - £8.
The highest CO2 emitting cars - VED Band G and equivalent vehicles (above 225g CO
2 per km), as well as those registered pre March 2001 with engines larger than 3,000 cc, will pay £25 a day.
Despite assertions that the Mayor will keep an open mind on the proposals until he has considered the responses to the consultation many consider it a case of when rather than if. The SMMT (Society of Motor Manufacturers and Traders) has been quick to respond to the proposals: "Londoners will be sceptical about the motives for this significant change to congestion charging and many will fear this is already a done deal," said SMMT's chief executive Christopher Macgowan. "However, we will push for a re-think on these totally disproportionate proposals. A family whose car emits one g/km more than their neighbour's could end up paying thousands of pounds more a year. That can't be right."
Interestingly, the Mayor's release admits that - excluding aviation - only 22% of London's CO
2 emissions are from transport and that cars account for under half of that. Somewhat ironically, the proposals will hit early adopters of some hybrid vehicles with the £8 daily charge. Should the proposals be implemented the costs of owning a vehicle with 225g/km and above emissions will rocket. Residual values of such vehicles would also be likely to be heavily hit. The consultation starts on Aug 10 and ends Oct 19.
Kyle Fortune - 9 Aug 2007