ULEZ scrappage scheme extended to provide business support


In response to the potential exodus of businesses and growing concerns, the mayor of London has decided to enhance a scheme aimed at assisting the purchase of new vehicles.

3d map of Ulez charge
Map credit: TfL. Logo credit: BMF.

At the end of July, all SMEs in London with less than 50 employees, and families receiving child benefit, will be eligible for financial support to replace their polluting vehicles.

This extension of London’s scrappage scheme comes ahead of the expansion of the ultra-low emission zone (ULEZ) on August 29, 2023. The ULEZ expansion will introduce a daily charge of £12.50 for non-compliant vehicles across all London boroughs. Individuals driving diesel vans registered before September 2016 or petrol vans registered before January 2006 will be required to pay this charge to travel within the M25 area.

CEO of the Builders Merchants Federation, John Newcomb, expressed concerns to Sadiq Khan in April. He highlighted the impact the additional ULEZ charges would have on local builders and property repair firms.

SMEs are grappling with inflationary price rises, squeezed margins, and contractual pressures.

Due to this, Sadiq Khan has decided to extend the scrappage scheme to address these concerns. He emphasised his understanding of the anxieties faced by individuals who do not possess compliant vehicles and are worried about transitioning to the new regulations.

He stated, “The majority of vehicles in London are already ULEZ compliant and will not have to pay anything. But I completely understand the concerns of people who may not have a compliant vehicle and are worried about how they’ll make the transition.

“We already have the biggest-ever scrappage scheme in place to support Londoners on low incomes, London-based micro-businesses and charities and disabled Londoners. But I’ve listened to families and small businesses in outer London who want more support and I’m pleased to be able to announce today a major expansion to the scheme run by TfL [Transport for London] to ensure we can help them.

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