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13th Febuary 2008

On 12 February 2008, following public and stakeholder consultation, the Mayor of London confirmed the Variation and Transitional Provisions Order 2007. The key changes are:

• A 100 per cent low CO2 discount for cars that: Produce less than 120g/km CO2 and meet the Euro 4 standard for air pollution emissions or produce no more than 120g/km of CO2, and appear on the PowerShift register

• The introduction of a higher charge of £25 (€33.60) for cars and certain pickups with two rows of seats that produce high levels of CO2. Vehicles liable for this charge are: Cars first registered with the Driver and Vehicle Licensing Agency (DVLA) on or after 1 March 2001 that produce above 225g/km of CO2; Cars first registered with the DVLA before 1 March 2001 with engines greater than 3,000cc; Pickups with two rows of seats (extended-cab dual-purpose pickups) with CO2 emissions of greater than 225g/km or with engines greater than 3,000cc in size.

• The removal of the 90 per cent Residents' Discount from the Congestion Charge for residents who continue to drive cars liable for the CO2 charge

• The closure of the 100 per cent Alternative Fuel Discount (AFD) to new registrations, and the phasing out of the AFD by January 2010

• A change to the NHS reimbursement scheme. Patients travelling in those cars that are liable for the higher charge will only be reimbursed a maximum of £8 (€10.76), not the full £25.

• The introduction of the Euro V incentive - a time-limited reduced Congestion Charge of £6 (€8.07) for lorries and heavier vans that meet the Euro V standard for air pollution emissions.

Commenting on the changes, the Society of Motor Manufacturers and Traders (SMMT) pointed out that it was unfair on families with some variants of popular cars like the Ford Mondeo, Renault Espace or Vauxhall Vectra. The SMMT was also concerned that the potential CO2 savings were so low pointing out that Transport for London figures suggest a CO2 saving of up to 8,100 tonnes under the changes. That compares to total ground-based transport emissions in London of 9.7 million tonnes and therefore the saving is only 0.084 per cent.

The RAC Foundation’s Acting Director, Sheila Rainger, commented that: “The congestion charge was originally developed to reduce congestion. Changing this will confuse the public and reduce support and trust for future initiatives. Motorists are not able to change their vehicles overnight and people change their cars less often in London than the rest of the UK. The discount for smaller vehicles may encourage a few families to purchase them as second cars but a small car isn't a realistic choice for everyone.”

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