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EV congestion charge will penalise operators, says Logistics UK


Transport for London (TfL) announced on 27 May that it is seeking views on a number of changes to the Congestion Charge to help keep London moving, encourage the uptake of electric vehicles and promote sustainable travel across the capital.

Transport for London’s (TfL) consultation on the Congestion Charge recognises the importance of commercial vehicles to the economy by creating a clear distinction between commercial vehicles and domestic road users.

However, Logistics UK's Senior Policy Manager - Road Freight Regulation, Chris Yarsley says, the new proposals will still present a significant increase in costs for electric vehicle operators, which currently operate in the capital without facing a charge: “It is vital TfL incentivise operators to decarbonise fleets and we continue to press for the continued exemption from the charge for electric vans and HGVs.  

“Any increase in charges is a disincentive for operators to serve the capital and congestion charges should be used to encourage road users to use alternative modes of transport – an option that is not available to logistics operators.  

“Operators have made significant investments moving to electric vehicles and they simply cannot afford to soak up additional costs so it is likely that any increase in charges will have to be passed on which will ultimately lead to increased prices for the end user.  

“London depends on logistics businesses to keep the capital stocked with everything its businesses and consumers rely on every day, and the transition to alternatively fuelled vehicles should be incentivised, not penalised in this way.” 

Discounts and exemptions for the Congestion Charge can be found here.

 

Published On: 29/05/2025 15:14:36

 

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News In Brief

Portsmouth's first micro logistics hub launches

Solent Transport has announced the launch of the Portsmouth Micro Logistics Hub on Wednesday 21 May 2025. Located on the Hilsea Industrial Estate, the hub is the first of its kind in Portsmouth and will discover if these types of facilities can help to reduce the number of delivery vans clogging up Portsmouth’s streets.

The hub consolidates its share of deliveries for the city at a single location before redistributing parcels and packages by cargo cycles to reduce congestion and improve air quality.

Financed by the Solent Future Transport Zone programme and in partnership with Portsmouth City Council as the site owner, Delivery Mates as the operator and Decarbon Logistics Solutions a Volofleet Portfolio Company as the site manager; the micro logistics hub provides an opportunity to uncover the benefits and any potential challenges of consolidating deliveries.

The site will operate for an initial trial period of 12 months, with its activity regularly evaluated by the partners, who are aiming to discover whether micro-hubs provide an alternative delivery option that delivers value for money, contributes to Portsmouth’s clean air objectives and offers sufficient activity to be commercially sustainable.

Delivery Mates will be operating the micro logistics hub by receiving and sorting up to 1,000 parcels a day from national couriers and local businesses. The parcels will initially be delivered to the hub by vans and lorries, where they will then be transferred onto electric cargo cycles and taken to their final destination.

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