TfL revives its proposal of a boundary charge in London

13 October 2021

A £3.50 boundary charge for vehicles to enter London, which was first suggested by the Mayor of London in December 2020, was included in Transport for London (TfL)'s list of money-raising options recently submitted to the government’s spending review.

The charge, which could potentially raise an estimated £500 million per annum, was previously rejected by Transport Secretary Grant Schapps.

Earlier this year February 2021, when the charge was first proposed, the British Vehicle Rental and Leasing Association (BVRLA) also expressed its concern with the prospect of a boundary charge.

A press statement issued by the BVRLA said, “Without significant changes to legislation and back-office systems, the scheme would be impossible to implement. Furthermore, it does not consider how vital goods and services get into London, or the fact that many vehicles used by residents in London will be registered with the DVLA outside of London, as company cars, rental or car club vehicles”.

TfL said in its submission to the spending review that it needed £500 million for the rest of 2021 and a further £1.2 billion through 2022/23. 

Andy Byford, TfL’s commissioner, says that without a long-term funding deal, TfL could have to move to a managed decline scenario. He said, “We would have to retreat from running a network that is fit for London, to instead focusing only on the core, legal responsibilities of maintaining a safe and operable skeleton network.

“This would prevent the economic recovery that is needed and lead to an increase in car use, thereby unravelling the air quality and road safety advances we have seen and removing any possibility of achieving the mode shift required to support the Government and mayoral carbon targets.”

We at Marshall Leasing are always keen to keep you up to date with the latest information regarding charges and changes to driving rules and regulations. We trust that you find this information of use.

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