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Ulez Generates Ps107 Million In Extra Revenue For London And The Zone Grows In 14 Weeks

According to data, London’s Ultra Low Emission Zone helped City Hall earn an extra PS107 million in the first year it was in place.
The numbers were unearthed by the AA just 14 weeks before the ULEZ grows from the present modest Congestion Pricing Zone in the capital to cover a massive swath of residential London spanning the area within the North and South Circular Roads, spanning an area 18-times as large.
Following the introduction of the ULEZ in April 2019, official records reveal that the Greater London Assembly’s net revenues from congestion charges were PS267 million in the financial year 2019-20, according to data supplied by the Ministry of Housing, Communities & Local Government.
The AA ‘conservatively predicts’ that this move, which takes effect on October 25, may affect around 300,000 inhabitants with cars that are not complying with ULEZ guidelines – although it’s probable that many more will be affected – meaning they will have to pay the daily price of PS12.50 each time their vehicle turns a wheel.
According to government estimates, the city hall profited an extra PS107 million from congestion charges in the first year of the Ultra Low Emission Zone’s existence.
If you also travel within the Congestion Charge zone in central London, you must pay the daily Congestion Charge of PS11.50 and the ULEZ charge, unless your vehicle has an exemption or discount.
Because the Congestion Charge zone will not be expanded, you will be charged PS24 in total.
According to the AA, MHCLG’s reported income numbers demonstrate the ULEZ’s already significant influence on City Hall’s coffers.
While the Congestion Charge is currently payable by individuals driving within the central zone between the hours of 7 a.m. it 10 p.m., every day except Christmas, and costs PS15,
Except for the cleanest autos, it affects everyone.
Any diesel cars that do not reach Euro 6 requirements (usually built before 2016) and petrol cars that do not meet Euro 4 standards (generally made before 2006) are subject to the ULEZ.
It is priced at PS12.50 per day, 24 hours a day, 365 days a year.
The ULEZ levy and expansion are divisive because, while a brand new Bentley Bentayga SUV, Range Rover, or Porsche 911 would not be subject to it, a ten-year-old family car worth a few thousand pounds would.
Congestion fee revenue has steadily decreased, from roughly PS258 million in 2014-15 and 2015-16 to around PS230 million in 2018-19.
Yet, in the first year after the ULEZ was implemented, revenue increased by 74% to more over PS400 million.
According to Transport for London, congestion charges do not generate a profit, and all revenue generated by the congestion charge and ULEZ is used to improve the transportation network, including cycleways, buses, and the Tube.
The AA, on the other hand, is skeptical of these assertions.
‘All of that money they identify used to come from transportation funding funded by taxes or tolls,’ says Luke Bosdet of the driving association.
‘Today it comes from targeting drivers who are going about their daily lives and do not have the financial means to purchase the most up-to-date versions of cars.’
‘The revenue generated by taxes and fines by the Greater London Authority far outweighs the expense of the infrastructure required to enforce the restrictions.’
‘They don’t spend it on facilities that would lower all automobile traffic, regardless of the means of the motorists, such as effective park and ride or park and cycle facilities on London’s outskirts.’
‘Imagine what London could achieve if it followed Cambridge’s lead and converted 3.6 million auto commuting trips into park and ride bus trips each year.
‘Certainly, the ULEZ will have the desired environmental effect – by pricing poorer people off the road, and we can only speculate on the financial implications of the ULEZ being enlarged.’ This is Money reached out to Transport for London for comment but did not receive a response in time for publication.
While its launch looks to be already producing additional income for City Hall, ULEZ is stated to be having the desired impact when it comes to decreasing e-waste.
TfL claims that after the introduction of the ULEZ, the number of vehicles passing the stringent pollution regulations has increased from 39% in February 2017 to more than 80% by August 2020.
It also claimed that throughout that time, it had a transformative impact on air pollution, contributing to a 44% reduction in roadside nitrogen dioxide within its bounds.
However, it remains to be seen what will happen when a large number of car-owning Londoners outside of the central zone and in more regular residential areas are projected to be impacted by the ULEZ expansion beginning on October 25.
According to an investigation by the AA, residents residing within what charging region own an estimated 300,000 non-compliant automobiles.
According to the AA, the figure of 300,000 vehicles is a conservative estimate, and there might be many more – not to mention the tens of thousands of non-compliant automobiles that drive into London every day.
When cars, motorcycles, vans, and minibuses fail to fulfill the ULEZ emissions criteria, they will be charged a daily fee of PS12.50. What is the ULEZ?
The ULEZ, which went into effect in April 2019, aims to minimize the number of older petrol and diesel vehicles in London in order to enhance air quality and reduce hazardous air pollution.
It is now enforced within the Congestion Charge Zone in central London, but it will grow to include an area 18 times the size starting on October 25th, covering the heavily populated boroughs within the A406 North Circular and A205 South Circular roads.
When travelling within the ULEZ expansion zone, cars, motorcycles, vans, and minibuses that do not fulfill the ULEZ emissions criteria will be charged a daily fee of PS12.50.
It implies that anyone who drive a non-compliant car five days a week will be hit with a PS3,250 annual fee.
Even if they just drove their car once a week on weekends, they would pay PS650 per year.
Any diesel automobile that isn’t Euro 6 standard (usually registered after 2016) or any petrol car that isn’t at least Euro 4 standard (typically registered since 2006) will be charged a daily fee.
Historic vehicle tax is free for all vehicles registered with the DVLA as being more than 40 years old.
Yet, this leaves a large number of modern classics unrepresented.
If you’re unsure about your car, motorcycle, or van’s Euro standard, you can use TfL’s tester to see if it complies with ULEZ criteria.
Except on Christmas Day, the ULEZ is open 24 hours a day, seven days a week, every day of the year, which means that if you enter the zone at 23:00 and leave at 02:00, you will be charged twice (PS25).
Hundreds of strategically positioned Automatic Number Plate Recognition (ANPR) cameras will ensure compliance, and those who do not pay within 24 hours of entering will be fined PS160, which will be reduced to PS80 if paid within two weeks.
What does this mean for the people of London?
Hazardous air pollution has been connected to 9,400 early deaths each year in the city, and it continues to be one of the most serious health concerns for locals.
Several observers, however, have criticized the system for putting the lowest-income residents in the capital off the road.
‘Our main concern is for low-income workers and families that rely on their cars,’ adds Bosdet.
‘There will be people who work two or three jobs per week to make ends meet, and many of them will rely on their cars to get around because of their tight schedules as they juggle their start times and drive between companies.’
‘Families that go grocery shopping on a weekly basis find that having a car is crucial, not just for hauling all of the food, but also for transporting the children in a group.
‘Frankly, with a PS12.50 tax for leaving your driveway or parking space, I don’t see any comfort for homeowners who can’t find the PS1,500-PS2,000 needed to acquire a replacement car that meets the emissions regulations,’ says one resident.
‘A large number of persons who have called the AA are old,’ says Bosdet.
‘They bought what they thought would be their last car to get them through retirement and into old age, and now they must either deplete their money or give up a lot of their independence to replace it.’
‘I believe the only option these residents will have for emergencies after the ULEZ expansion is in place will be taxis or contacting an ambulance.’ What if your automobile isn’t ULEZ compliant?
A variety of scrappage initiatives are available to assist London drivers in replacing their older, more polluting vehicles in order to satisfy the statutory emissions level.
Nevertheless, funds are only available to small enterprises, charities, and disabled or low-income Londoners, excluding many Londoners.
Nevertheless, the PS1,000 to PS2,000 offered for the car and motorcycle scheme will barely put the latest greener vehicles within reach of the poorest inhabitants who rely on their cars for commuting, school runs, and everyday chores.
TfL told us in May that the ULEZ car and motorcycle plan had discarded 4,500 vehicles, while the van scrappage scheme had trashed roughly 5,000 vans.
By that time, a total of PS43.8 million had been paid out of the allotted PS52 million for scrappage programs, leaving only PS8.2 million with four months until the ULEZ extension.
Just 4,100 motorists will be able to trash their old automobiles and utilize the PS2,000 charge to purchase a zone-compliant vehicle.
TfL said applications will be welcomed as long as funds are available, but no additional incentives are anticipated to be granted if this pool runs dry.

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