Changes to Congestion Charge – PHVs Targeted To Raise Money

The Mayor of London and TfL have announced proposals to change the Congestion Charge (a.k.a. Tax) so as to raise more money. The main change is that PHVs (minicabs) will no longer be exempt from paying this tax. Uber and other drivers will no doubt be up in arms about this and it will mean their clients pay a lot more.

Another change is that the Ultra Low Emission Discount (ULED) which currently applies to vehicles that emit less than 75g/km of CO2 will need to have zero emission capability by 2019 and by 2021 only electric vehicles will qualify. That means that many of the 20,000 vehicles currently registered for the ULED will need to be changed if the owners wish to continue to qualify for the discount.

A Blatant Lie

What’s the justification for these changes? The consultation announcement says that the Congestion Charge “was a huge success”. It claims a reduction in traffic and a 30% reduction in congestion as well as improvements in air quality since it was introduced. These claims are simply spurious. There was a short-term reduction in some vehicles entering the central zone, but the numbers of taxis, PHVs and buses increased. The result was that congestion soon returned to what it was before the tax was introduced and has since got substantially worse. Neither was there any improvement in air pollution which was never expected to happen and did not. See this web page for the facts: http://www.freedomfordrivers.org/congestion.htm

The claims made by TfL are downright lies. But traffic delays have been increasing which is the justification put forward by TfL for the proposed changes.

Why Should Taxis Be Exempt?

One controversial aspect of the original scheme was that registered taxis (black cabs) and PHVs (private hire vehicles) were exempt from the congestion tax. It was never very clear as to why some vehicles should be exempt while others are not. Why should private car occupants pay the charge while people using other vehicles for similar journeys should not? Even more puzzling is why PHVs are now proposed to be taxed while taxis are not. What is the logic of this? Note that the increase in PHVs due to the popularity of services such as Uber has led to many more vehicles entering central London of late and hence have contributed to congestion significantly in the last couple of years. But will the tax now proposed actually reduce their numbers? That is surely unlikely for the same reason that the congestion charge scheme did not reduce congestion. The unsatisfied public demand is such as to soon soak up the capacity released by people unwilling to pay the tax. You cannot solve congestion via taxation!

It’s About Money

The conclusion must be that these proposals are more about raising money for the Budget of Mayor Sadiq Khan. He desperately needs it. See previous blog posts for coverage of that topic.

A Timely Announcement

One might ask why the Mayor chose to announce these changes on a Friday lunchtime when the news channels will be dominated by the Brexit decisions and the England World Cup match for the next 48 hours. This might enable him to escape the opprobrium of PHV drivers for a few hours but not much longer I suggest.

More Information

See this web page for more information and to respond to an on-line consultation: https://consultations.tfl.gov.uk/policy/private-hire-charge-exemption/?cid=ccyourviews

You may also wish to tell us how the ABD should respond to the consultation as we will certainly be doing so.

Twitter: https://twitter.com/Drivers_London

You can “follow” this blog by clicking on the bottom right.

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2 thoughts on “Changes to Congestion Charge – PHVs Targeted To Raise Money

    • That’s not exactly correct. To quote from TfL, the following applies currently: “Taxis and PHVs are exempt from paying the Congestion Charge when actively licensed with London Taxi and Private Hire (TPH). The exemption for PHVs only applies to private hire bookings”. It’s got nothing to do with whether they are accessible to disabled people as PHVs would clearly not qualify at present in most cases. There is another reason for exemption which is: “•Vehicles used by disabled people that are exempt from vehicle tax and have a ‘disabled’ taxation class”, but that clearly does not apply to taxis, or PHVs.

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