‘Costs will likely creep up’: Fleet drivers could lose £57million a year with new car tax

Sadiq Khan talks on the expansion of the ULEZ

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London’s Ultra Low Emission Zone (ULEZ) expanded on October 25 to include all areas within the North (A406) and South (A205) Circular Roads. Most vehicles need to meet the ULEZ emissions standards or drivers will need to pay a £12.50 daily charge to drive inside the zone.

The zone now covers most of London, with it being 18 times larger than the original size, as well as it being double the size of the clean air zone in Paris.

The zone has been expanded in the hopes that the daily charge will incentivise drivers to upgrade to a more environmentally-friendly vehicle.

Masternaut studied its customers’ behaviour from August 23 to September 22 in order to predict the impact of ULEZ on fleet vehicles.

The results show that the expansion could cost fleets £54 million.

Using existing data, Masternaut estimates 64,100 non-compliant light commercial vehicles (LCVs) to enter the expanded zone on a yearly basis.

This is compared to the 16,500 non-compliant LCVs in the former, smaller ULEZ zone.

This means it would affect nearly four times more LCVs, unless behaviours change and fleets upgrade their vehicles now.

Andy Pass, VP Marketing, Product & Strategy at Masternaut outlines the effect on fleet drivers with the car tax changes.

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He said: “The expansion of ULEZ is an important step for cleaner cities and a greener future.

“However, while we are in full support of initiatives to reduce the environmental impact of road traffic, there will of course be a knock on impact and financial cost to businesses operating vehicle fleets in the Greater London area.

“Our figures show that this expansion is going to cost fleets with vans entering the clean air zone £54million over the next year in additional charges. 

“Local and national governments are taking a push and pull approach to incentivising the switch to cleaner vehicles.

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