High streets in outer London boroughs have been financially impacted by the expansion of the Ultra Low Emission Zone (Ulez), new data from Transport for London (TfL) has revealed.
Mayor Sadiq Khan made his zone almost four times larger by covering all of Greater London in August 2023, creating the world’s biggest pollution charging region.
He brought all of the capital’s outer boroughs into the area, which encompasses nine million people, but a new report has now revealed the financial cost to businesses impacted by the change.
Spending on the high street fell by 3.4 per cent in the year after Ulez expanded, compared with a 2.8 per cent fall across inner London.
Barking & Dagenham saw the biggest drop in high street spending, with a decline of 13.25 per cent.
Only eight of London’s 33 local authority areas saw spending increase on the high street after Ulez was introduced to all London boroughs, the report found.
But Sir Sadiq has remained steadfast that the scheme has not impacted retail and has helped to cut pollution levels in the capital.
For petrol cars to meet Ulez standards – based on emissions of nitrogen oxides (NOx) and particulate matter – they must generally have been first registered after 2005.
Most diesel cars registered after September 2015 are also exempt from the charge.
Drivers who enter the zone in a non-compliant vehicle are required to pay a £12.50 daily fee unless they are exempt, such as taxis or transport for disabled people.
Failing to pay the charge by midnight on the third day following a journey risks incurring a fine.
In a statement, Sir Sadiq said: ‘When I was first elected, evidence showed it would take 193 years to bring London’s air pollution within legal limits if the current efforts continued.
‘However, due to our transformative policies we are now close to achieving it this year.
‘Today’s report shows that ULEZ works, driving down levels of pollution, taking old polluting cars off our roads and bringing cleaner air to millions more Londoners.
‘The decision to expand the ULEZ was not something I took lightly, but this report shows it was the right one for the health of all Londoners.
‘It has been crucial to protect the health of Londoners, support children’s lung growth, and reduce the risk of people developing asthma, lung cancer and a host of other health issues related to air pollution.
‘With boroughs in outer London seeing some of the biggest reductions in harmful emissions and London’s deprived communities also seeing greater benefits, this report shows why expanding ULEZ London-wide was so important.’
Critics say the Mayor has largely ignored the financial impact on businesses that have seen a decline in sales and footfall since the scheme was expanded.
Keith Prince, the City Hall Conservatives’ transport spokesman, told The Telegraph: ‘The Mayor is supposedly comparing these results to a London where the Ulez scheme didn’t happen, as though we can accurately measure such a thing.
‘How he can say that Ulez is responsible for London’s air clearing up with a straight face is beyond me – the data relies on maybes, possibilities, assumptions, and straight up fantasy in order to justify a project that is saddling TfL and Londoners with mountains of debt.’
The report follows a report last month that just one in five drivers are paying their ULEZ fines on time, new research suggests, as motorists ignore Penalty Charge Notices (PCNs).
A Freedom of Information by Turo found Londoners are failing to heed strict rules on emissions levels in the capital, with £438million in total fines owed.
More than 100,000 cars have received five or more fines, with a further 76,000 having received ten or more.
It highlights the difficulty many Londoners have affording either a new compliant car or ULEZ fines.
Since the ULEZ expansion in 2023 TFL has issued more than 2.4million penalties – equivalent to one every 15 seconds.
Despite this near constant stream of fines dished out, the FOI has discovered just 20.2 per cent are being paid on time.
A spokesman for the Mayor of London said: ‘Sadiq is proud to be a pro-business Mayor.
‘The overwhelming evidence is that Ulez has not impacted footfall or retail and leisure spending in outer London.’