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Air quality proposals could add substantial costs for London van operators, says FTA

The proposals in the consultation, which the Mayor said would be launched in a “matter of weeks”, include:

  • Extending the Ultra-Low Emission Zone (ULEZ) to the North Circular Road and the South Circular Road and the possibility of bringing forward the introduction earlier than 2020. Under current plans the ULEZ will only operate within the Congestion Charging Zone and it is due to come in from 2020.
  • Implementing an extra charge on the most polluting vehicles entering central London using the Congestion Charge payment and enforcement system from 2017. The Mayor added that this would not mean an increase in the Congestion Charge but just the method for collecting the extra charge from people driving the most polluting vehicles.
  • Requiring vans and lorries to be Euro 6-compliant across inner-London – possibly as early as 2018 with lorries to be Euro 6-compliant across all of Greater London as early as 2020.

In addition, Transport for London (TfL) would be given the green light to start work on the costs and challenges of implementing a diesel scrappage scheme as part of a wider national scheme delivered by the Government.

Mr Khan said: “I want to act before an emergency, which is why we need big, bold and sometimes difficult policies if London is to meet the scale of the challenge.”

In response, the FTA said it believes the measures would add substantial cost to all London businesses, and potentially put some small companies out of work altogether.  

Christopher Snelling – FTA’s head of national and regional policy, stated: “It should be remembered that air quality has already improved substantially in the Capital, and will continue to improve further – even if London does nothing. These disruptive proposals will at best only accelerate the situation that is likely in a few years from now. They will put businesses at risk, and add massive costs to all – especially to those who need the services that vans provide.

“Freight operators and the service industry could find themselves being charged extra for their vehicles before they have had any reasonable chance to upgrade.  Many businesses could lose trade first in central London, then the whole of inner London – and for businesses based in the zones involved, the impacts will be even worse.”

The association said that in addition to the general increase in cost of doing business in the Capital, it was also worried about the impact on small businesses in the haulage sector and all those who use or rely on vans. 

Snelling added: “The tipping point where these regulations become less disruptive to business is around eight years after the Euro standard was introduced when a third to half the fleet is compliant, and the second hand market is fully developed allowing all companies to upgrade if needed. FTA is concerned that these new proposals could see lorries charged extra just three years after their Euro VI standard came in, and vans just months after – as their Euro 6 standard does not start until this autumn.

“If we are to avoid increasing costs for consumers, businesses will need significant financial help to adopt these standards this early. It is imperative that the Mayor looks at carrots as well as sticks.”

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.

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