ULEZ Revenue and Benefits – Not As Expected

ULEZ SignTransport for London (TfL) have released some figures for the first six months of the ULEZ scheme (for April to September 2019). The bad news for the Mayor is that the income from the scheme in fees paid by non-compliant vehicle owners and penalty charges is much less than expected.

There was revenue of £31 million from charges paid (12.50 per day for cars, vans and motorcycles and £100 for HGVs and buses). Plus there was £11 million from penalty charges. One driver managed to collect 81 penalty charges but otherwise it is the typically high figure you see from camera enforced schemes where many people don’t realise they have entered the charging zone or forget to pay.

But the overall income of £41 million, equivalent to £82 million per annum, is much less than originally anticipated. Income in the first year was originally estimated to be £174m and costs £47m, producing a surplus of £127m. So the surplus is likely to be a fraction of that originally anticipated at only £35 million. See https://tinyurl.com/y4w6pwuk for the original estimates.

It would seem likely that more vehicle users than anticipated have switched to newer vehicles with the proportion of non-compliant vehicles falling rapidly to only 25% in September. The overall number of vehicles also appears to be falling. The low numbers of non-compliant vehicles means that the income will also fall substantially in the second half of the year thus reducing even further the anticipated surplus so it could be much less than even £35 million. This will put yet another hole in the Mayor’s financial budget for TfL which is already in a dire state.

The good news (at least for those who believe that NOX air pollution is a major health hazard – the ABD does not), is that NOX emissions from road transport in the central zone are estimated to have fallen by 31%. That is probably consistent with the original estimates that there would be a fall in NOX emissions of 17% by 2021 as only about half of such emissions come from road transport and such emissions are falling rapidly anyway as the vehicle fleet is renewed.

Only a small reduction in CO2 emissions is reported, and no figures on particulates (PM) are yet reported. You can read the full TfL report here: https://tinyurl.com/y2h63dxc

The ABD still believes that this is a very expensive scheme that is imposing enormous costs on many vehicle owners with very marginal benefits in terms of air pollution. It is unclear whether NOX actually has any negative health impacts – see our report here that covers the air pollution issue in depth: https://tinyurl.com/yx9bk9kg . We would also like to see some actual measurements of NOX rather than just estimates.

There has never been any proper cost/benefit justification for this scheme but the Mayor no doubt saw it as a means to plug the holes in his TfL budget with the ULEZ tax. In reality it’s going to raise a lot less than anticipated.

Readers should make sure they oppose the expansion of the ULEZ to the North/South Circular in 2021 which will cover many more people.

Twitter: https://twitter.com/Drivers_London

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