London Businesses Weary As Vehicle Pollution Toll Zone Expands

Days ahead of the controversial expansion of London’s road charging scheme for the most polluting vehicles, businesses in the British capital remain wary despite the mayor unveiling further subsidies.

The extension of the Ultra-Low Emission Zone (ULEZ) to all of Greater London on Tuesday has sparked a wider public backlash as Britons grapple with a cost-of-living crisis fuelled by decades-high inflation and low economic growth.

Alongside that, a third of London businesses are concerned that the £12.50 ($16) daily toll set to be applied across the city will have a negative impact on their employees, according to the London Chamber of Commerce and Industry (LCCI).

Around 40 of those based in the suburbs — where the scheme is being expanded to — believe it will increase their costs, it found.

“We’ve been urging the mayor of London to do a lot more so that businesses, particularly small businesses, are not hammered,” James Watkins, of the LCCI, told AFP.

He said bosses were “relieved” after under-fire Labour mayor Sadiq Khan announced increased financial support for owners of more polluting vehicles affected by his ULEZ extension.

“It’s important because firms were worried for their workers,” Watkins added.

Under the new support measures, owners of older petrol or diesel vans — many thought to be self-employed and small-business operators — can receive £7,000 in scrappage reimbursement, compared with the previous £5,000.

Meanwhile, every Londoner will now be eligible for grants of up to £2,000 to scrap their non-compliant vehicle.