Driving into London is set to soon incure new charges on top of the newly introduced ULEZ and Central London Congestion fees.
In a bid to find £500 million to plug Transport For London’s yearly finances, a new fee will be introduced to make up the shortfall.
The TFL finance committee announced that in order to raise the funds, Londoners would be required to pay through either a devolution of vehicle excise duty or from proceeds of a Greater London Boundary Charge.
The first option – devolving vehicle excise duty cash – would effectively mean the Treasury handing over £600 extra to London a year, something ministers may be reluctant to do.
That means a new boundary charge could well be the solution.
The current plans would see people charged £3.50 a day to drive into the capital from outside the London border.
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 apply on top of existing fees like the Congestion Charge and the £12.50 ULEZ charge, further adding to non-Londoners’ headaches when entering the capital.
It could save Londoners from facing far higher bus and tube fares to plug the funding gap.
But it could also hit businesses in outer London which currently bring in visitors from outside the capital.