London’s CO2-based congestion charge could raise £172m extra a year
21 August 2007

The swingeing £25 London Congestion Charge for cars in tax band G could raise a staggering £250m a year, according to an estimate by Autocar.London mayor Ken Livingstone is currently “consulting” on the proposal to hit drivers of cars over 225g/km with the £25 charge, while allowing cars below 120g/km to enter the zone for free. Autocar’s estimate is based on figures supplied by Transport for London, which estimates 15 per cent of cars in the zone today are in VED tax band G, the equivalent of about 40,000 cars a day. When each one pays £25, that will raise £253m in a year, of course providing the charge doesn’t deter them.Overall the extra revenue flowing into TfL’s coffers could be as high as £172m, the difference between today’s £8 charge and the proposed £25. Alone that would be enough to pay for the scheme’s running costs, last year £156m. And the true potential for revenue raising from the proposed change could be much higher, according to figures from the car-makers body, the SMMT. These show that 173,237 band G cars are currently registered in Greater London — the area inside the M25. Older models with engines over 3.0-litres number 68,442.

TfL: “no comment”

TFL won’t comment on Autocar’s estimates: “It’s very hard to comment on these figures because we don’t know how the charge will change driver’s habits,” they told us.Any increase from band G cars will have to compensate for revenue lost to zero-rated band A and B cars. TFL estimates about one per cent of vehicles in the zone would currently qualify for the exemption; at that rate, the change will cost TfL around £5.5mil a year. However, with an increasing number of models being offered now that emit less than 120g/km of CO2, that figure can only rise.

Julian Rendell

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Lexus LC500
    Car review
    20 October 2017
    Futuristic Lexus LC coupé mixes the latest technology with an old-school atmospheric V8
  • Maserati Levante S GranSport
    First Drive
    20 October 2017
    Get ready to trade in your diesels: Maserati’s luxury SUV finally gets the engine it’s always needed
  • Jaguar XF Sportbrake TDV6
    First Drive
    19 October 2017
    The handsome Jaguar XF Sportbrake exhibits all the hallmarks that makes the saloon great, and with the silky smooth diesel V6 makes it a compelling choice
  • Volkswagen T-Roc TDI
    First Drive
    19 October 2017
    Volkswagen's new compact crossover has the looks, the engineering and the build quality to be a resounding success, but not with this diesel engine
  • BMW M550i
    First Drive
    19 October 2017
    The all-paw M550i is a fast, effortless mile-muncher, but there's a reason why it won't be sold in the UK