London's ULEZ expansion sparks concerns for small businesses

On Tuesday 29 August 2023 the Ultra Low Emission Zone (ULEZ) zone will expand to cover all London boroughs. From this date onwards, drivers of vehicles who do not meet the emissions standards will face a daily charge of £12.50 upon entering and travelling within the zone.

The driver behind the expansion is the need to improve air quality. According to research, road transport is the single biggest contributor of nitrogen dioxide and particulate matter emissions in London. The solution chosen is to require all vehicles travelling into London to meet stricter emissions standards.

To be compliant with the stricter emissions standards, petrol-powered cars and light commercial vehicles must meet Euro 4 emissions standards (petrol cars that meet Euro 5 and Euro 6 are exempt), whilst diesel-powered cars and light commercial vehicles must meet Euro 6 standards. Whilst most petrol cars and light commercial vehicles registered after January 2006 will meet the ULEZ standards, only diesel cars and light commercial vehicles registered since September 2015 are likely to be compliant.

This means relatively new (7 years and older) diesel vehicles are unlikely to meet the emissions standards.

Whilst the Transport For London website cheerfully announces 9 out of 10 cars seen driving in outer London already meet standards required by ULEZ, the picture is rather less rosy for operators of older commercial vehicles and particularly light commercial vehicles such as diesel vans. 

Data suggests almost half of vans registered outside of London do not meet ULEZ standards, which means many operators will be required to pay £12.50 each day upon entering the ULEZ zone. In addition, residents of the expanded ULEZ will also be required to pay the charge if their vehicle does not meet standards and they drive within the zone.

The Mayor of London has launched scrappage schemes to ease the financial burden on those who wish to purchase a newer car or van, but these are only available to those who live or own a business within London boroughs. Any residents outside (but commute into or travel within the zone for work) are offered no support.

Whilst the Association respects the need to improve air quality in urban areas, they anticipate the measures being introduced will challenge smaller businesses who may not have the resources to upgrade to a vehicle that meets the emissions standards. 

Rather like the withdrawal of rebated fuels such as red diesel from the landscape industry last year (which the Association strongly lobbied against) the expansion of the ULEZ zone represents a blunt instrument that will place an additional financial burden on the industry.     

When questioned, Association members who work within the expanded ULEZ zone and operate vehicles that do not meet ULEZ standards were understandably frustrated by the expansion of the scheme. Operators of older vehicles advised they were well-maintained and generally replaced at around 10 years but did not have the resources necessary to upgrade sooner. Travelling into the expanded ULEZ zone represents an additional burden.

The Association raised these challenges with Transport for London but, other than replacing older vehicles, no solution was suggested.

Association members can check the status of their vehicle using the Transport for London vehicle checker.

Drivers of non-compliant vehicles can ease the administrative burden of paying for each visit into the ULEZ zone by setting up Autopay. There is no fee for this service.

Drivers of ULEZ-compliant vehicles do not need to take any action.