FOI - How the ULEZ revenue is used [Aug 2023]

Your request 

Where is the money going? I want to know and I am sure the 700,000 non compliant vehicle owners would like to know.

Our response

Please see below the information the GLA holds within scope of your request.

Transport for London (TfL) estimates that the London-wide ULEZ could generate up to £200m a year in net revenue for the first two years following expansion on 29 August 2023 but this will decline sharply with no surplus by 2026-27 as compliance increases. By 2027-28 net proceeds from the ULEZ are projected to be negligible.

It is a statutory requirement that any net revenue generated by our road charging schemes (the ULEZ, LEZ or the Congestion Charge) is reinvested back into London’s transport network, including investing in improving transport links in outer London.

Some of the programmes that the London-wide ULEZ net revenue will be spent on are detailed in the TfL Four-Year General Programme.

Only drivers of vehicles that do not meet the ULEZ standards need to pay the £12.50 daily 
charge. 90 per cent of cars seen driving in outer London on average day meet the ULEZ 
standards meaning their drivers will not need to pay. Additionally around half of London 
households do not own a car.

For those with non-compliant cars, the Mayor is supporting Londoners with a £160m scrappage scheme, extending existing grace periods, introducing new grace periods for disabled people who may find it more difficult to adapt to the scheme and improving the bus network in outer London to provide more alternatives to vehicle use.

Since 21 August 2023, all Londoners with an eligible non-compliant car or motorcycle have been eligible to apply for a grant of £2,000 (or £1,000 for a motorcycle) to scrap their vehicle. 

Regarding trees, there was no pledge to plant two million trees in the Mayor’s published 
manifesto. However, as you may be aware, the Mayor is committed to increasing tree canopy cover in London and has set a target in his London Environment Strategy of increasing the area of London covered by trees by ten per cent of current levels by 2050. To support this goal, the Mayor has funded the planting of over 476,000 trees since 2016. 

If you have any further questions relating to this matter, please contact us, quoting 
reference MGLA290823-5297.