Transport for London has revealed that because of the higher than expected surge in drivers switching from non-compliance ULEZ (Ultra Low Emission Zone) cars to Ulez compliant vehicles, the forecast revenue that was expected to generate for the TFL has dropped dramatically. Initial figures were a daily revenue stream of approximately £2m a day. This would have been generated by a mixture of levies and £130 fines for non-compliance or failure to pay charges as enforced.
The prediction was for about 135,000 cars and vans a day paying the £12.50 levy, due to their exhaust emissions exceeding the new rules and requirements to be in keeping with the new greener guidelines. HGV vehicles will have to pay the much higher charge of £100 and the estimates were around 2,000 of these types of vehicles per day.
TFL has now had to recalculate its revenue forecasts and submit new figures to reflect the stronger than expected change over to ULEZ compliance vehicles. Now forecasts show that the income expected over the next three years will be £300m in 2022/23, £200m in 2023/24, and £100m in 2024/25.
To avoid paying the levies, drivers were simply switching to either electric vehicles or upgrading the old cars for a newer car roughly less than 15 years old or diesel vehicles which are roughly less than six years old.
Unfortunately, the lower-than-expected revenue stream will result in around 100 bus routes being axed and 200 more will have a reduced service. Also, the underground tubes cannot be replaced until around 2040. So this will have an impact on a lot of commuters in the London metropolis. To get some idea of the impact this will cause, it would total around a million fewer public transport journeys a day. And the even more significant impact will also result in driving Londoners back into their cars. The knock-on effect continues with proposed cutbacks in the all-new cycle and pedestrian road safety scheme called “Vision Zero.” This scheme was created to try to eliminate road deaths and will now have to be put on hold.
Another severe impact will be TFL diesel buses will now have to remain in service until 2037 and City Hall has indicated this revenue setback could take London back to the underfunded, unreliable transportation system last seen in the Seventies and Eighties.
Emma Gibson, the director of London TravelWatch, who is the passenger watchdog, said “Millions of people rely on London’s buses and Tubes every day, and maintaining a high-frequency service will be an important factor in London’s recovery.”
“Fewer people using public transport also means more people using their cars, which is a problem for congestion; air pollution and climate change.”
It’s a mixture of good news and bad news
The bad news is, there’s a huge drop in revenue forecasts and expected funding for modernisation of London’s network infrastructure, meaning there may need to be a rethink of ways of trying to fund the underground, buses, and new schemes. This isn’t good for commuters who rely on public transport and for some this will have a negative impact on their daily commute.
The flip-side of the coin is, drivers have been given more options in complying with the new Ulez rules and it seems like emissions will be cut in the proposed zones.
The TFL underestimated the ease of drivers being able to upgrade their old cars for either brand new cars or quality used cars that are ULEZ compliant. Used car dealers such as Best Price Car Sales have made it a lot easier for customers to shop around online, view hundreds of used car stocks, and have easy part-exchange options. Plus what has stopped many other drivers from considering upgrading their old cars is being able to do so with car finance still outstanding on their cars. Now used car dealers like Best Price Car Sales based in Southampton, are able to assist by getting settlement figures and incorporating a new car finance deal so the customer is now able to purchase a newer used car and not worry about having to complete the terms of their old agreement.
To find out more about how you can switch your old car to a ULEZ compliant used car and save £12.50 a day or more, contact us on 0238 0225 666 and speak with one of our friendly advisors. Alternatively, you can click here and get instant car finance loan approval today.