London drivers are facing a significant financial hit as Mayor Sadiq Khan confirms major changes to the city's Congestion Charge coming into effect on January 2.
What's Changing in the Congestion Charge?
The daily fee for entering central London's congestion zone will increase from £15 to £18, marking the latest in a series of price hikes since the scheme's introduction in 2003 by then-Mayor Ken Livingstone.
More controversially, the Cleaner Vehicle Discount that currently exempts electric vehicles (EVs) from the charge will be completely scrapped. This means EV owners who previously travelled through the zone for free will now face the full £18 daily fee.
Industry Backlash and Warnings
The AA has led criticism against the removal of the EV exemption, with President Edmund King writing directly to the Mayor to express concerns. Mr King warned that eliminating the discount was "premature" and risks "backfiring on London's drivers, EV uptake, air quality and your admirable ambition to be the first EV-ready global city."
"Electric vehicles are a great choice for some," Mr King stated, "but we're not yet at the point where removing incentives makes sense. The risk is that London's early adopters end up being penalised for doing the right thing."
The motoring organisation argued that serious barriers remain before mass electric adoption can happen, and this change sends the wrong signal at the wrong time.
Official Justification and Alternative Views
Deputy Mayor for Transport Seb Dance defended the changes, stating that maintaining the status quo would see approximately 2,200 more vehicles using the congestion charging zone on an average weekday next year.
"At the same time we must support Londoners and businesses to use greener and more sustainable travel," Mr Dance said. "That's why I'm pleased we're proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles."
However, Keith Prince from City Hall Conservatives condemned the move: "These proposed changes are going to break the backs of Londoners who have to travel via road - either for work, because of disability, or other reasons - by slowly ramping up the cost."
Michael Lloyd from The Federation of Small Businesses added that many businesses operating on tight margins won't be able to absorb these extra costs, potentially leading to higher prices for customers within the charging zone and increased inflationary pressures.
The changes come against a backdrop of ongoing transport policy debates in the capital, following recent controversies around ULEZ expansion, 20mph zones, and Low Traffic Neighbourhoods.