People living in or commuting to London or its surrounding areas have been dreading the Ultra-Low Emission Zone (ULEZ) following its expansion last month.
The ULEZ carries a £12.50 daily charge for vehicles that enter any London zones and fail to meet the emission standards.
And now there is another proposed charge that people maybe not know, about MyLondon reports.
A new dramatic fee is being considered to help fix Transport For London’s financial struggle following a tough year because of the pandemic.
Read More: London’s Ultra-low Emission Zone becomes 18 times bigger – but does it affect Essex?
It comes as a doomsday scenario from TfL’s finance committee on Wednesday (November 17) said that a £500 million-a-year funding hole would need to be paid “either through the devolution of vehicle excise duty paid by Londoners, or from the net proceeds of a potential Greater London Boundary Charge”.
The first option consists of transferring back to vehicle excise duty cash. This would mean that the Treasury would hand over £600 extra to London annually, which ministers may be reluctant to do and could also result in a new boundary fee.
People driving into the capital from outside the London boundary would be taxed £3.50 per day under current plans.
TfL says it would help further contribute to a “green recovery for London” by reducing the number of vehicles entering the capital, raising around £500m every year.
The boundary charge would be in addition to existing costs such as the Congestion Charge and the £12.50 ULEZ charge, making it even more difficult for non-Londoners to enter the capital.
Although it could significantly impact outer London businesses, which currently bring in visitors from outside the capital, it could save Londoners from facing far higher bus and tube fares to plug the funding gap.
Tory MP Andrew Rosindell told MyLondon a boundary charge would be “devastating” for his East London borough of Havering.
Romford in Havering is currently a town centre for many in neighbouring Essex – but residents could look to Southend instead to avoid a new £3.50 a day fee in the capital.
Sadiq Khan confirmed on Thursday that a boundary charge was “one of the options we’re considering”.
“I’m not running towards this. [But] £500m is a big ask for us,” he said at Mayor’s Question Time.
Mr Khan told the London Assembly: “London’s recovery is contingent on getting the money it needs to provide a world-class transport service.”
Opposing the plans, Croydon and Sutton Assembly Member Neil Garrett said the money raised from the £3.50 charge itself would be very small, with most of the actual cash coming from fines.
And Romford Conservative MP Andrew Rosindell said: “The imposition of a boundary charge would add insult to injury for the people of Romford and Havering who have simply had enough of this Zones 1-3 Mayor.”
On Tuesday (November 23), the London Assembly will scrutinise Sadiq Khan’s budget plans for next year. Expect this one to come up.
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