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Extra £10 diesel tax hits companies using diesels in London

61_Boris_Johnson_Announces_diesel_tax1
Boris Johnson: proposing extra £10 diesel tax to enter London in order to reduce polution. The Mayor wants to promote cleaner cars - like the Tesla roadster with which Boris is pictured

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29 July 2014

Ford Fiesta diesel in London
Small businesses face extra costs for doing business in London if drivers are in a diesel company car under new £10 diesel tax proposed by the London Mayor

The £10 extra diesel charge in central London could come into force as early as 2020 and would mean diesel drivers would pay a minimum of £20 every time they entered the capital’s ‘ultra-low emission zone’.

Diesel vehicles that meet the Euro 6 emissions standard would be exempt – the engine and exhaust of these cars do not produce the particulates of older diesel engine technology – while petrol cars registered before 2006 would also have to pay.

Johnson is calling on the government to help by raising vehicle excise duty rates and urging the European Commission to create a fund to help cities switch to electric cars.

Costs per week for diesel driver into London

Five days congestion charge                                                       £50

Five days pollution charge                                                            £50

Total charges for diesel driver                                                    £100

Total extra weekly charge versus petrol driver                   £50

Matthew Pencharz, the mayor’s environment adviser, told The Times: “We want to see an unwinding of incentives that have driven people to diesel.

“Euro engine standards on emissions have not delivered the savings expected, meaning we now have a legacy of a generation of dirty diesels.”

He dismissed calls for a total ban on diesel vehicles which are being voiced by some environmental groups.

“It would not be reasonable to say, ‘I’m sorry, you have just bought that car but it’s now banned.’ He said.

“People bought them in good faith and it’s not fair to clobber them.

“We think a five-year notice gives enough warning. People who drive in once a month might not buy a newer car whereas somebody who drives in every day probably would do.”

Cars that currently escape both charges

Porsche Panamera S E-Hybrid    £84,401

Lexus RX450h                                    £44,495

BMW i3 Range Extender               £28,830

VW e-Golf                                           £25,845

Toyota Prius                                       £21,995

Nissan Leaf                                         £16,490*

SMART ed-coupe                             £15,395*

Renault Z0E                                        £13,995*

* Including government EV grant of £5,000

 

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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