The move will likely see electric car clubs become “unaffordable” for consumers in central London, reports Kumail Jaffer, Local Democracy Reporter
credit Car Clubs EV
A proposal by Transport for London (TfL) to slash the cleaner vehicle discount for electric cars will only lead to more polluting cars on the capital’s roads, the authority has been warned.
Under plans being consulted on, the 100% discount for electric vehicles (EVs) will be cut to 25% from the start of 2026, while the fee for driving in the Congestion Charge Zone (CCZ) will rise from £15 to £18.
The moves will likely see car clubs, which offer short-term car rentals to members, become “unaffordable” for consumers, according to shared transport charity Collaborative Mobility UK. The charity, which warned that the change could cost car club operators more than £1million a year, have now called for EVs in the schemes to be treated differently from private electric cars.
Richard Dilks, chief executive of Collaborative Mobility, told the Local Democracy Reporting Service (LDRS): “Around 37% of the car club fleet in London are EVs, compared to just 5% of all cars in London. Operators have been leading the way in the transition to clean car travel, but now face being penalised by the changes announced by TfL.
“The current 100% discount for EVs entering the Congestion Charge Zone must continue for car club vehicles, which should clearly be treated differently to private cars. This would recognise the ability of car clubs to cut traffic congestion, carbon emissions, and user costs.
“It would also allow Londoners to keep accessing alternatives to fossil fuel vehicles at a fraction of the cost of ownership. Each car club vehicle replaces 31 private cars in the capital, freeing up space, cutting congestion and improving air quality.
“It would therefore be utterly baffling if car clubs were treated as private cars under these changes. We hope that TfL listens before it is too late. There are no logical grounds for continuing to discriminate against cars that are shared between many people, including those on lower incomes, in favour of privately-owned cars used by far fewer people.
“If these changes go ahead, car clubs will face significant extra costs which will be difficult not to pass onto customers.”
Labour’s own transport spokesperson on the London Assembly, Elly Baker, is calling for traders to be exempt from TfL’s changes. She told the LDRS: “TfL should be backing the transition to electric vehicles, including for car clubs, with a 100% discount on the congestion charge.
“Car clubs help cut overall car journeys and ease congestion by giving Londoners access to a car when they truly need one, without having to own it. TfL should be making it as easy as possible to promote the growth of car clubs and incentivise their vehicles to be electric.”
Several key stakeholders have also weighed in on the proposed changes to EVs in car clubs. James Taylor, general manager at Zipcar, said: “Car clubs are a proven congestion-reducing measure, they provide a vehicle when Londoners need one, reducing the need for private car ownership.
“Because of this, car clubs also help to remove older, more polluting private vehicles from London’s roads. This is why we believe that car clubs should be treated differently to private vehicles in the congestion charge proposals.”
A TfL spokesperson said: “The congestion charge has been in place since its introduction in 2003 to manage traffic and congestion in the central 1% of London during the busiest times of day.
“Without the changes proposed in our consultation, the charge would become less effective, with an estimated additional 2,200 vehicles in the zone on an average weekday.
“Under these proposals, we are also proposing a new cleaner vehicle discount for those who do need to drive in the zone so they would still be able to benefit from a discount if they drive an electric vehicle, with a greater reduction for journeys that are harder to switch to walking, cycling and public transport, such as those made by vans for vehicles used for commercial purposes.
“Central London is one of the best-connected places in the world with high quality sustainable transport options.”
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