London's electric vehicle owners will face significant changes to congestion charging rules from January 2024, marking the end of an era for zero-emission transport incentives in the capital.
New Charging Structure Revealed
Transport for London has announced that the congestion charge will increase by 20% to £18 per day starting in January. More significantly, electric vehicles will no longer be exempt from the charge for the first time since the incentive was introduced.
While EV drivers will lose their complete exemption, they will benefit from reduced rates. Electric car owners will receive a 25% discount, meaning they'll pay £13.50 daily. Electric vans and heavy goods vehicles will benefit from a more substantial 50% discount, reducing their charge to £9 per day.
Mayor Defends Controversial Decision
London Mayor Sadiq Khan justified the policy shift by highlighting the dramatic increase in electric vehicle numbers on London's roads. Almost 120,000 electric vehicles are now registered to drive in the zone - six times more than in 2019 when the full discount was initially introduced.
"Keeping London moving by reducing congestion is vital for our city and for our economy," Khan stated. "While the congestion charge has been a huge success since its introduction, we must ensure it stays fit for purpose."
The mayor warned that without these changes, an additional 2,200 vehicles would be driving in the zone on an average weekday next year, potentially overwhelming the system.
Criticism and Concerns
Motoring groups and political opponents have strongly criticised the changes. The AA president, Edmund King, described the move as "a backward step which sadly will backfire on air quality in London."
Labour's transport spokesperson on the London assembly, Elly Baker, expressed concerns that the changes would "make it harder for people to go green when they need a vehicle to do their jobs." She particularly highlighted how minicab drivers who had switched to electric vehicles would be penalised.
Critics argue that removing incentives could slow the transition to cleaner vehicles, potentially undermining London's air quality improvements.
Future Changes and Exemptions
From March 2027, the 90% discount for all residents of the congestion charge zone will only apply to electric vehicle owners. Additionally, car clubs operating vehicle sharing schemes will receive a full exemption for their electric vehicles.
The congestion charge applies to central London between 7am and 6pm on weekdays, and between noon and 6pm at weekends and bank holidays.
These London changes come amid broader national speculation about electric vehicle taxation. Chancellor Rachel Reeves is reportedly considering a pay-as-you-drive scheme for EVs in the November budget, addressing the fact that electric vehicles don't contribute through fuel duty.
The original congestion charge was introduced in 2003 to combat traffic congestion in central London, with the electric vehicle exemption scheduled to expire at the end of this year.
