Pay-As-You-Drive Shock: London Mayor Plans Mileage Tax, Extends Fees to Non-Residents!

In London, Mayor Sadiq Khan has proposed a new road pricing scheme, which could charge drivers up to £2 daily for most vehicles, in a bid to reduce the city’s car traffic and combat climate change. This initiative is aimed at encouraging residents to opt for more sustainable modes of transport such as public transport, cycling, walking, or switching to electric vehicles. The daily fee would apply to all but the cleanest cars, reflecting an urgent push towards meeting the city’s ambitious environmental targets.

The proposal also includes a longer-term plan to implement a pay-per-mile system and extends charges to non-residents driving into Greater London, expanding the current charging zones. This comes in response to a report commissioned by City Hall which indicates a need for a 27% reduction in car traffic by 2030 to meet net-zero ambitions. This urgency is underlined by recent severe climate events in London, including flash floods and extreme heatwaves, which have had significant impacts on the city’s infrastructure and residents.

However, the plan has faced criticism. The RAC has described the timing of the proposal as “poor,” arguing that cleaner, compliant vehicles remain prohibitively expensive for the majority of people. Despite the pushback, Mayor Khan remains resolute, stating his unwillingness to delay action on climate change, emphasizing the need for proactive measures rather than reactive ones.

In pursuit of transparency and public involvement, Transport for London (TfL) and the mayor’s office will conduct a public consultation on these proposals, with plans to possibly implement the chosen measures by May 2024. If successful, this road user charging could eventually replace existing fees such as the congestion charge and the Ultra Low Emission Zone (ULEZ), streamlining the system into what the report suggests will be a “simple and fair scheme.”