TfL: ULEZ expansion to bring in £200m - but ‘no contingency plan’ for delay

Transport for London (TfL) has no contingency plan for if the Ultra Low Emission Zone (ULEZ) expansion is delayed, a senior official has confirmed - despite an expected income of around £200m over its first 12 months.

Sadiq Khan’s extension of the clean-air zone is currently penned in for August 29, from which point it will incorporate the whole of Greater London.

A judicial review, launched by four Conservative London councils plus Surrey County Council, is due to be heard in court early next month, potentially derailing the mayor’s plans.

Mr Khan previously confirmed during Mayor’s Question Time in May that he has no back-up plan if the scheme’s expansion is delayed, with Conservative Assembly Member (AM) Susan Hall labelling his response as “extraordinary”.

And this morning, during a meeting of the London Assembly’s budget and performance committee, TfL chief finance officer Patrick Doig confirmed the transport body is not working on a contingency plan - and Mr Khan has not requested that one be prepared.

He added that, while uncertainties remain around factors such as compliance levels, TfL expects the net proceeds from the ULEZ expansion to be “about £200m” over the first 12 months, with the potential for plus or minus £100m around that figure.

Echoing Ms Hall’s comment to the mayor, Mr Fortune described TfL and Mr Khan’s lack of a plan as “extraordinary”.

The committee was meeting to scrutinise the mayor’s £4.4bn capital spending budget for 2023/24, of which TfL is responsible for £2.3bn.

The budget includes £82.5m allocated for the ULEZ expansion. The largest expenditure under TfL is for ongoing renewals, costed at £725m.

The five councils which launched the judicial review into the ULEZ expansion received a boost last month, when further grounds were granted to proceed to court.

Since announcing the extension of the zone last November, Mr Khan has defended it as a difficult but “necessary” move to clean up London’s air.

Following a slew of letters from Labour MPs and council leaders, the mayor unveiled his £110m scrappage scheme will be expanded in July to incorporate all Londoners on child benefit and small businesses with fewer than 50 employees.

Making the announcement, Mr Khan said: “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 to ensure we can help them.”