ULEZ has arrived. Here's what it means for London businesses

What is ULEZ and where does it apply?

The Mayor of London Sadiq Khan described London pollution as “a public health emergency”, adding that “ULEZ is exactly the sort of bold action that is required to deal with it”.

The new levy aims to “help to improve air quality and making central London a safer and more pleasant place to live, work and visit,” according to Transport for London.

The first wave will cover the existing CCZ—but on a 24/7 basis. During CCZ hours, both charges apply.

The daily charge covers midnight to midnight. If you drive in the zone at 11pm and again at 1am the following day, you’ll be charged twice.

A second wave, from October 2021, will cover all of inner London within the North and South Circular roads. So even businesses that rarely, if ever, enter central London should consider bringing their fleets up to standard.

Upgrade your vehicles

The obvious solution is to bring your fleet up to standards, though that could prove costly for businesses where mobility is key, like delivery services. Consider leasing rather than purchasing. That way, you can spread costs and include the vehicles as a tax-deductible operating expense.

If you have a van or bus that would be costly to replace, consider retrofitting with emissions-reducing technology. The Energy Savings Trust website has details of what can be done, including replacing an older engine and fitting a diesel particulate filter (DPF).

Consider a grant

New electric vehicles may qualify for a plug-in grant of up to £3,500 for cars and £8,000 for vans. Find a list of eligible models here.

The Mayor of London, Sadiq Khan, also launched a £23million scrappage scheme to help ‘micro businesses’ (those with 10 or fewer employees) and charities switch older vehicles for ULEZ-compliant ones.

“Vans criss-cross the capital making journeys that are crucial for London’s economy,” said Steve Gooding from motoring association RAC. “Helping smaller businesses, with limited cash flow, trade up to newer cleaner vehicles faster than they could do otherwise makes sense.”

Gerry Keaney, from the British Vehicle Rental & Leasing Association (BVRLA), added that “car clubs will also play a vital role in helping businesses and individuals make the shift to cleaner, ULEZ-compliant motoring from April 2019.” 

ULEZ could put the capital at the forefront when it comes to tackling pollution and shaking up the idea of vehicle ownership. Other major cities will be watching how London implements, and ultimately benefits from, the scheme.  And, if they follow suit, the positive impact on the environment and quality of life could be huge.

The charge clearly presents a challenge for businesses driving in London. But with a bit of adapting and thinking about driving and delivering in a new way, it could also present an opportunity to be at the forefront of the future of mobility.