25 fleets, businesses, and climate action groups have written an open letter to the Mayor of London, asking him to reconsider rolling back the Cleaner Vehicle Discount (CVD), which exempts EVs from the congestion charge.
Rolling back the discount would result in EV drivers and fleet operators having to pay the same £13.50 daily charge as internal combustion (ICE) vehicles, resulting in extra annual costs of up to £3,000 for regular drivers, and removing an incentive to switch to electric.
The letter was launched by Electric London, a coalition that aims to increase EV adoption in the city.
The AA, DPD, Polestar, Openreach, Greenpeace, the Centre for Net Zero, and the GMB Union have all signed the letter.
Matt Galvin, managing director of Polestar UK, said: “The UK has consistently removed incentives to support customers making the move to pure electric and has even increased the tax burden on EV drivers.
“We are fully in favour of cleaning up London’s air quality, but removing the CVD will only slow EV adoption and put our net zero targets at risk.
“We therefore urge a rethink from TfL. Simply put, it is too early to be taking away highly effective incentives such as these.”
30% of private hire vehicles in London are now EVs, a figure which could be put at risk by any policy changes, the letter warns.
Warren Kenny, London regional secretary at the GMB, said: “The GMB stands shoulder to shoulder with those calling on the Mayor to rethink plans to scrap the Cleaner Vehicle Discount.
“This isn’t just about clean air; it’s about protecting jobs and livelihoods for our members who have invested in electric vehicles.
“Imposing new charges now would be a tax on progress and a blow to London’s future as a “green city”.
“Workers have sacrificed substantial funds to make an environmental impact in the capital so why should they be penalised?”
Despite the CVD driving EV adoption in the city, Electric London warns that electric van adoption is lagging, with only 3% of new vans registered in the city being electric.
Clive Selley, CEO at Openreach, said: “As one of the UK’s largest fleet operators, we’re proud to be leading the shift to electric vehicles — with nearly 5,000 EVs already on the road — helping to cut emissions and improve air quality in London and beyond.
“Incentives like the Cleaner Vehicle Discount have played a crucial role in making this progress possible.
“Reducing this support by half risks slowing momentum just as adoption is accelerating. Continued support is vital to overcoming barriers and keeping fleets like ours moving toward a cleaner, more sustainable future.”
