Sadiq Khan has announced an expansion of the grant scheme for London’s ultra-low emission zone (Ulez) to include households with heavily polluting vehicles, allocating an additional £50m in response to political pressure surrounding the plan. The revised proposals also offer higher scrappage payments for non-compliant vans owned by sole traders and small firms, as well as minibuses and wheelchair-accessible vehicles. Khan’s decision comes in the wake of the Conservatives’ surprise victory in the recent Uxbridge byelection, which many, including Keir Starmer and his shadow team, attributed to Khan’s plan to extend Ulez to outer London boroughs. The Ulez scheme, which charges older, more polluting vehicles £12.50 per day to drive within the zone, began in central London in 2019 and expanded with minimal controversy to most inner boroughs two years later. However, the proposed expansion to all 32 London boroughs has faced strong opposition, particularly from some Conservative councils who argue that outer areas rely more heavily on cars and have less dense public transport. Despite the political backlash, Khan has been firm in his belief that the plan should proceed due to the significant public health implications of vehicle pollution. After failing to win Boris Johnson’s former seat in Uxbridge, Starmer and his team urged the Labour mayor to reconsider. With the new proposals, both sides hope that political pressure, including criticism from Chancellor Rishi Sunak’s government and numerous Tory MPs who argue that the expansion is ill-timed given the cost of living pressures, will be reduced. The enhanced scrappage program, which increases total costs from £110m to £160m, maintains the £2,000 grant for cars or vans but makes anyone in the city with a non-compliant vehicle eligible. Previously, the £2,000 payments were only available to those receiving specific benefits. Khan’s officials argue that £2,000 is a sufficient amount, citing a vehicle sales website that shows nearly 5,000 Ulez-compliant cars for sale within a 200-mile radius of central London. Sole traders and businesses with fewer than 50 employees can now receive up to £7,000 for each van they replace, an increase from £5,000, with a maximum of three vans eligible. The previous grant of up to £7,000 for replacing a minibus is now £9,000, also for a maximum of three. The grant for retrofitting a van or minibus has risen from £5,000 to £6,000. Additionally, there are larger grants available for replacing non-compliant vans or minibuses with electric alternatives. The grant to replace a wheelchair-accessible vehicle has doubled from £5,000 to £10,000. The hope is that the additional funding will alleviate political attacks and lead to a relatively swift decrease in media focus on the expansion. The mayor’s office notes that around 90% of cars used in outer London are already compliant with Ulez regulations.
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