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London boundary charge feasibility study is underway

Transport for London has commissioned a feasibility study into a London boundary charge, whereby all vehicles entering Greater London will have to pay a daily £3.50 charge.

Logistics UK understands that the primary objective of the charge is not to alleviate congestion, but to raise revenue to plug the gap caused by the collapse in Transport for London’s fares income following the COVID-19 pandemic.

In December, the Mayor of London, Sadiq Khan, called on the government to allow the capital to keep the £500 million raised annually from Vehicle Excise Duty (VED) charged to London-based drivers. He warned that unless London was allowed to keep the VED money, other ways of raising money would be needed to help overcome TfL’s financial challenges and achieve the aims of his Transport Strategy.

Natalie Chapman, Logistics UK’s Head of Urban Policy, said: “Our view is that a boundary charge amounts to an additional tax on the businesses working hard to keep London stocked with the goods and services it needs to operate. Logistics UK understands the troubled financial situation Transport for London (TfL) is in, and we are urging the Mayor and the government to work together to identify a sustainable, long-term solution to its problems.

“However, now that the feasibility study is underway, we have fed in some initial thoughts during stakeholder workshops. We plan to respond in full to any consultation on the boundary charge that may be issued after the London mayoral election on 6 May 2021.”


Published On: 01/04/2021 14:00:37


In brief


The Department for Transport has received the Highways England anniversary report on All Lane Running (ALR) motorways. Since becoming Transport Secretary in July 2019, Grant Shapps MP has shared the concerns of many regarding ALR motorways, also known as smart motorways. One of his first actions in his new role was to commission a stocktake to set out recommendations to raise the bar on safety.

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