Anger grows at plans to level congestion charge on EVs

Plans by London Mayor Sadiq Kahn to remove the congestion charge exemption from electric vans have sparked major anger, with more than 40 businesses signing an open letter urging a rethink. Currently operators of electric vans in the capital pay an initial £10 fee which renders them exempt from the congestion charge and according to many operators was a fundamental factor in encouraging them to switch to electric. But from Christmas Day 2025 Transport for London intends to remove this exemption with electric vans then being liable for the £15 per day fee – potentially adding up to £5,500 a year to the cost of operating such vehicles. The move comes at a time when sales of electric vans are sliding with the current market share of such vehicles running at just half of the 10% that the Government is expecting by the end of 2024 as part of its Zero Emissions Vehicle mandate.

Signatories to the letter, which is being led by environmental lobby group Clean Cities, include the AA, Openreach, food delivery service Ocado and the Federation of Small Businesses. The letter states that many firms took on debt to replace their diesel vans with electric versions “to invest in our children’s future and in the air that we breathe.”

It adds that; “If this plan goes ahead then it will bring an astronomical cost to our businesses at a challenging time. Worse still, you will hamper the efforts of many businesses transitioning to cleaner transport. Countless business owners wish to move away from dirty diesel vans and to electric alternatives, they should be supported and not hindered doing so.”

AA president Edmund King heavily criticised the plans, saying;. “Cutting the discount for electric vans is a detrimental policy which could backfire on the health of Londoners and the economy of London. We still need to encourage zero emission transport rather than deter it.”

According to a spokesman for the London Mayor the cleaner air discount is being phased out from the congestion charge as the increasing switch to such vehicles has resulted in a reduced impact ton congestion which was the primary aim of the charge.

The spokesman added; “However, the Mayor recognises the issues raised relating to electric vans, including the importance of supporting those businesses who have done the right thing and moved to cleaner vehicles – we are working with TfL to see what more could be done to mitigate the effect of this phasing out and further incentivise businesses to make the switch to cleaner vehicles.”