Van scrappage scheme for London

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The Mayor of London, Sadiq Khan, has announced that £23 million is to be used to fund a van scrappage scheme ahead of the capital’s Ultra Low Emission Zone (ULEZ) entering into force.

From 8 April 2019, the ULEZ will introduce charges for vehicles which do not meet strict emission standards. Diesel vans which do not meet the Euro 6 standard will have to pay £12.50 a day to drive in central London.

Initially aimed at micro-businesses (those with fewer than 10 employees), the planned scheme is intended to help them switch to the cleanest vehicles, including electric ones.

Under the scheme, money would be available to scrap vans that do not comply with the new ULEZ standards, but which are regularly driven into the zone.

Mr Khan wants his £23 million to be matched by the Government, either from the £245 million National Clean Air Fund or from underspend on Highways England’s £75 million air quality fund.

Welcoming the announcement, AA President Edmund King said that it would give smaller businesses a route to obtaining cleaner vehicles, an escape from air quality charges and the chance to stay competitive.

For the Federation of Small Businesses (FSB), Sue Terpilowski also praised the move, commenting that it would help struggling small firms who are faced with changing an expensive vehicle stock particularly as many of them are facing damagingly high costs of doing business in the capital.

Further details of the scheme will be made available in 2019.

Last reviewed 7 January 2019

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