Over 40 businesses, including well-known companies like Ocado, the AA, and Openreach, have urged Mayor Sadiq Khan to reconsider his plans to extend the congestion charge to electric vans in central London starting on Christmas Day 2025. The businesses argue that this move will hinder the already slow uptake of electric vans, as only 5.9% of new vans sold in 2023 were electric. They emphasize the importance of incentives to encourage the adoption of cleaner vehicles, especially as emissions from vans have risen by 63% since 1990.
These businesses have invested in electric fleets and feel that the current exemption system, which allows them to register vehicles as exempt for a nominal fee, played a crucial role in their decision to switch from diesel. Without this exemption, they face significant additional costs, potentially jeopardizing their investments in cleaner transportation. The AA president Edmund King warned that discouraging zero-emission transport could impact the health of Londoners and the economy of the city.
The lack of enthusiasm for electric vans in London is partly due to their higher cost compared to diesel vans and the challenges of charging them, as some public charging points may not accommodate these larger vehicles. In contrast, the Netherlands has seen higher sales of electric vans, and several Dutch cities are implementing zero-emission zones for delivery vehicles.
The Mayor’s office defended the decision to end the Cleaner Vehicle Discount, citing the increased prevalence of electric vehicles. However, they acknowledged the concerns raised about electric vans and are working with Transport for London to explore ways to support businesses transitioning to cleaner vehicles. Business groups, including the Federation of Small Businesses, emphasized the importance of incentivizing and supporting small firms that have invested in green initiatives.
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