Expanding the Congestion Charge Zone to the North and South Circular would be a huge hit to businesses in Greenwich and Lewisham already struggling due to Covid-19, local London Assembly Member, Len Duvall AM, said. The plans come as part of the Government’s proposed conditions for the Transport for London (TfL) funding deal, alongside fare hikes, council tax increases, and cuts to concessions. Writing to local business groups on the 21st of October, Len Duvall AM said the conditions would be “disastrous” for businesses in the capital.
The Government have offered £1bn in financial support in response to TfL’s request for £2bn to keep services running for the next six months. This week, it emerged that the deal would also come with a number of tough conditions. These include increasing fares beyond the RPI plus 1% hike that the Government set out in May. It includes the introduction of a new council tax precept, which will likely see a rise in Londoners council tax bills by a yet unknown amount. Free travel for 11-18-year olds will be permanently scrapped, and concessions for older people cut.
Plans to expand the £15 Congestion Charge Zone also form part of the Government’s conditions, on top of the increase in cost and operating hours in the existing zone, as demanded by the Government in May. City Hall says expanding the congestion charge to the North and South Circular roads will cover 4 million more Londoners.
Writing to local businesses on the 21st of October, Mr Duvall urged businesses to join him in sending a message to Ministers that Londoners will not accept the plans.
The Government’s expansion of the Congestion Charge zone is separate to the Mayor’s expansion of the Ultra-Low Emission Zone (ULEZ). The ULEZ, which will be extended to the North and South Circular roads next year only applies to the most polluting vehicles, with City Hall saying 4 in 5 vehicles will not be affected. £48million has also been allocated for scrappage schemes which support those on low incomes, disabled Londoners, small businesses and charities to switch to cleaner vehicles. The Government’s expansion of the £15 congestion charge would apply to the vast majority of vehicles, with very limited exemptions, and is estimated to impact on 4 million more Londoners.
Mr Duvall AM said the Government need to understand the “human impact” of their actions and urged local businesses and families to get in touch to set out what these changes mean for them.
TfL sought Government financial support after fares income dropped by 90% at the height of lockdown. Over the last four years, City Hall had turned around TfL finances, reducing the operating deficit by 71% and increasing cash reserves by 13%, despite the Government removing the £700million per year operating grant.
Local London Assembly Member, Len Duvall AM, said:
“The Government’s planned TfL funding deal would be disastrous for people in Greenwich and Lewisham. Let’s not forget, the reason TfL needs support is for one reason, and one reason alone – because Londoners did the right thing in staying at home due to Covid and fares income evaporated overnight. Now the Government are punishing Londoners for doing exactly what was expected of them.
“Business are being left to struggle with a continued loss of footfall and inadequate Government support. Londoners are concerned about losing their livelihoods. Introducing punitive conditions to the TfL funding deal that would hit Londoners’ pockets is about the cruellest thing they could do, and at the worst possible time.
“The Government need to understand the human impact of their actions – it’s not the Mayor they’re punishing, it’s ordinary Londoners. I’m urging families and businesses in the capital to get in touch with me and set out what this means for them so that we can make the strongest possible case to Government.”