27-05-2025
Sadiq Khan to scrap congestion charge discount for locals without electric cars
Sir Sadiq Khan has proposed a 20pc rise in London's congestion charge and plans to scrap a discount for people who live within the zone unless they drive an electric vehicle (EV).
Transport for London (TfL), which is overseen by the Mayor, plans to raise the daily charge for driving in central London from £15 to £18 from January 2026. It will be the first increase since 2020, when the fee climbed from £11.50.
TfL also plans to close the residents' discount scheme to new entrants unless they drive an EV. Currently, locals can qualify for a 90pc discount, a policy that has been in place since the congestion charge was introduced in 2003 by Ken Livingstone.
But under the new plans, anyone who moves to a property within the zone from March 2027 will have to own an EV to avoid paying the full driving charge.
TfL said the changes would 'encourage the uptake of electric vehicles and promote sustainable travel across the capital'.
However, the plans may prove controversial given the relatively weak uptake of EVs in the UK. One in five cars sold in March were EVs but that was below government targets. At the current pace, it will take years for the market to switch to fully electric vehicles.
TfL is also proposing to increase the congestion charge annually in line with public transport fares, which typically rise each year in line with inflation.
It said there would be more than 2,200 extra cars on the roads unless the charge increased.
Seb Dance, the deputy mayor for transport, said: 'We must support Londoners and businesses to use greener and more sustainable travel. That's why I'm pleased we're proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles.'
However, Susan Hall, leader of the City Hall Conservative Group, said: 'The war on motorists is alive and kicking under the dreadful mayoralty of Sadiq Khan.'
The changes come as TfL faces a budget shortfall of £23m this financial year, with Rachel Reeves's increase in National Insurance contributions putting pressure on the transport authority.
The Department for Transport previously announced that TfL would receive an additional £500m in government funding this year.
TfL's public consultation on the proposed changes will run until Aug 4.
London has the most congested roads in Europe, a title it has held for four years in a row.
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