FTA calls for more ULEZ funding for specialist operators

The Freight Transport Association (FTA) says more must be done to ease the financial burden of upgrading vehicles within London’s Ultra Low Emission Zone (ULEZ).

The ULEZ will come into force on 8 April 2019. Transport for London’s (TfL) updated van scrappage scheme means operators will receive £3,500 for scrappage and purchase/lease of Euro 6 replacement; £6,000 for scrappage and contribution towards running costs (including insurance) of an electric vehicle; and frequent users of the Congestion Charging Zone will receive £3,500 for scrappage.

However, the FTA fears that many operators are unlikely to be eligible for funding due to the low turnover threshold, and may also find the cost of upgrading their vans to Euro 6 is still too high, despite receiving financial support.

The ULEZ will come into force on 8 April 2019. Operators of any diesel vans that do not meet Euro 6 emissions standards will have to pay £12.50 a day to drive in the Zone

Denise Beedell, Policy Manager for Vans and Urban at FTA, the business organisation representing the logistics sector, commented: “While the scheme will help microbusinesses – defined as companies with fewer than 10 employees – cope with the costs of operating within the ULEZ and similar air quality schemes, more specialist operators are likely to lose out.

"These operators are unlikely to be eligible for funding due to the low turnover threshold. They may also find the cost of upgrading their vans to Euro 6 is still too high, despite receiving financial support from the government.

“Nevertheless, FTA is pleased to see the van scrappage package includes a range of options – operators can receive funding to either replace a pre-Euro 6 van with a Euro 6 model or an electric vehicle– to ease the transition to the new emissions standards for operators.”

Beedell continues: “FTA is pleased TfL will be reviewing uptake of the scheme shortly after implementation and has confirmed it will be open to adjusting the requirements where needed. We will be working closely with TfL to ensure the scheme is fit for purpose and reflects the need of microbusinesses operating within London.

“While there are only just over two years of compliant vans in the fleet – Euro 6 for vans was introduced in September 2016 – TfL has been exploring how businesses can access second-hand Euro 6 vans, so ‘compliant’ does not have to mean brand new – an important development to ensure affordability for businesses of all sizes and keep London trading effectively.”