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ULEZ Expansion: Nearly a quarter of businesses unprepared for changes

Many businesses in the UK are still not prepared for London’s extended Ultra Low Emission Zone, which goes live next Monday 25 October.

From 25 October, the existing Ultra Low Emission Zone (ULEZ) in London will expand to take up the area within the North and South Circular roads, part of an effort to protect Londoners’ health from illegal air pollution

From this date, the ULEZ will cover a single zone up to but not including the North and South Circular, as part of an effort to protect Londoners’ health from illegal air pollution. The new scheme will be 18 times the size of the current central area and will operate 24/7 (except Christmas Day).

Most vehicles, including cars and vans, need to meet the ULEZ emissions standards – it’s estimated to affect 100,000 cars, 35,000 vans and 3,000 lorries. Drivers of non-compliant vehicles must pay a daily charge to drive within the zone: £12.50 for most vehicle types or £100 for heavier vehicles, including lorries over 3.5 tonnes. Automatic number plate recognition cameras is already set up to enforce the wider zone and a vehicle checker tool is available online at the Transport for London (TfL) site.

But according to new research from Europcar Mobility Group UK, 23% of fleet professionals said they had no plan or strategy in place to deal with the changing rules.

For those businesses that operate in London’s Ultra Low Emission Zone, over two-thirds do not fully understand the size of the extended zone, what times the zone is in operation, the costs involved, and the type of vehicles the rules apply to.

Less than a third (29%) of respondents could correctly identify how big the ULEZ extended area will be and only just over a quarter (27%) could identify the additional London Boroughs it will encompass.

More than one in five businesses thought it only operates Monday to Friday from 6am to 7pm, and 23% thought a daily charge of £5 applies to vehicles that do not meet the ULEZ emissions standards. None of these ‘facts’ are correct.

There also seems to be a lack of knowledge of the Clean Air Zones (CAZ) currently in play or coming into force across the country in the next few months.

That’s despite the fact that most (87%) fleet professionals surveyed by Europcar Mobility Group UK are in no doubt that the ULEZ changes and new Clean Air Zones will have an impact on their business.

“While the extended ULEZ and new Clean Air Zones are, of course, crucial to improve health and the city environment in general, they present new challenges for fleet managers, who need to ensure business mobility and continuity without unexpected costs,” said Clive Forsythe, commercial director, Europcar Mobility Group UK.

“But the lack of knowledge about the rules surrounding the extended ULEZ could have a big impact on day-to-day business operations and finances, with unexpected fines quickly mounting up.”

A lifeline for Londoners or just a stopgap until road pricing?

The expansion of the scheme also continues to polarise views as to how successful it will be.

Environmental law charity ClientEarth, which has won three court cases against the UK Government over its failure to address the country’s chronic air pollution problem, has said the LEZ expansion is a “lifeline for Londoners”.

Katie Nield, lawyer at the charity, explained: “Toxic air harms the health of too many Londoners every year and the reality is that it won’t disappear on its own. Evidence shows that measures like the ULEZ are the most effective way to reduce lethal and illegal air pollution quickly. That’s why the expansion is a lifeline for Londoners.

“Alongside the ULEZ, local and national governments need to provide the right help and support to make sure that people on lower incomes and small businesses are able to transition to cleaner forms of transport.”

She added: “The next step for the Mayor now is to ensure the ULEZ works for the whole of Greater London so it protects people’s health in all corners of the capital, while securing funds to support those who need it. Children from Croydon to Brent should be able to breathe the same cleaner air regardless of where they live. This is an environmental justice issue.”

The Clean Cities Campaign UK has also welcomed the expansion as it publishes new research showing that Londoners have ditched diesel cars six times faster than the rest of the UK, since the ULEZ expansion was announced.

Oliver Lord, head of Clean Cities Campaign UK, said: “The expansion of the Ultra Low Emission Zone is monumental and has turbo-charged the end of diesel cars in London. We can’t stop now – if the Mayor is serious in his commitment for London to be carbon neutral by 2030, there is only one way to go: petrol and diesel cars out. Active, shared and electric mobility in.”

But thinktank Centre for London has warned that while all eyes will be on London to watch how successful the ULEZ will be at cleaning up the capital’s air, the scheme has its limitations.

Chief executive Nick Bowes said: “It’s an analogue scheme in a digital age, relying on technology from 2003. Many petrol and diesel vehicles are still exempt from the scheme and extending the reach of a flat charge may incentivise Londoners to drive more to get value from their daily payments. And less well-off Londoners who rely on their cars for work and lack the means to switch to a cleaner vehicle will be particularly penalised.”

Instead, Bowes has called for the pay-per-mile pricing to be rolled out.

“The Mayor of London should use COP26 as an opportunity to be bold and kickstart plans to replace the growing patchwork of road charges with a simpler, smarter and fairer road user charging scheme which ensures road users pay for the true cost of a journey,” he said.

“A pay-per-mile road user charging scheme would improve air quality, reduce congestion, encourage Londoners to walk, cycle and use public transport, and help to plug the yawning hole in Transport for London’s budget. Any additional revenue could also top up the Mayor’s scrappage scheme and help Londoners exchange their polluting vehicle for a cleaner one.

“The likelihood is that at some point in the near future the Government will have to introduce a nationwide road user charging scheme to replace lost fuel duties. The Mayor should grab the opportunity to go further now so that London has a system that works for the city.”

To find out if your vehicle meets emissions and safety standards required to drive in London, or if you need to pay a daily charge, use the TfL checker here.

To find out more about the ULEZ, visit the TfL info page.

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.