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Thursday 03 July 2025 12:00 am  |  Updated:  Thursday 03 July 2025 10:27 am

Uber, AA and Royal Mail urge Khan to scrap EV congestion charge plans

By: Guy Taylor

Transport Reporter

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TfL is consulting on a 20 per cent hike to to the congestion charge that will also end the 100 per cent discount for EV drivers.
TfL is consulting on a 20 per cent hike to to the congestion charge that will also end the 100 per cent discount for EV drivers.

A host of businesses including Uber, the AA and Royal Mail have urged Sadiq Khan to re-think rolling back the exemption for electric vehicles in London’s congestion charge.

Some 28 business and green groups published an open letter to the Mayor arguing that changing the discount would threaten London’s clean air ambitions, while prompting a “backslide to petrol and diesel vehicles.”

Currently, the Cleaner Vehicle Discount (CVD) allows EV drivers to travel through the UK capital’s congestion zone for free.

However, Transport for London (TfL) in May announced plans to consult on a 20 per cent hike to the charge that would also bring down the EV discount to 25 per cent. Electric van drivers will get 50 per cent off under the proposed changes.

The planned rollback of the EV discount has the potential to “reverse” London’s progress in the EV transition “just as we need to accelerate to meet the city’s laudable 2030 goals,” the letter reads.

The increased cost to households and businesses of up to £13.50 per day would also put at risk investment in vital EV charging infrastructure, it added.

Signatories of the letter include lobby group BusinessLDN, DHL, Openreach, Volvo and its sister EV company Polestar, the GMB Union and Greenpeace. Royal Mail currently operates the largest electric delivery fleet in the UK.

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London risks losing global lead, says Uber

Clive Selley, chief executive of Openreach, said incentives like the Cleaner Vehicle Discount had played a “crucial role” in the company’s shift to an EV fleet.

“Reducing this support by half risks slowing momentum just as adoption is accelerating. Continued support is vital to overcoming barriers and keeping fleets like ours moving toward a cleaner, more sustainable future.”

Andrew Brem, Uber’s UK boss, said the congestion charge exemption for EVs had been “instrumental” to London becoming a top player in electrification. “We want to work with TfL and others on a solution that maintains London’s position as a global leader.”

Matt Galvin, managing director at Polestar UK, said: “The UK has consistently removed incentives to support customers making the move to pure electric and has even increased the tax burden on EV drivers.

“We are fully in favour of cleaning up London’s air quality, but removing the CVD will only slow EV adoption and put our net zero targets at risk.

The Mayor’s office has been approached for comment.

Read more

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