In January we published a note on the likely profits that Transport for London (TfL) would make from the Ultra Low Emission Zone. That was based on our own estimates of the income they would receive (based on TfL data) as TfL had disclosed some information on budgets in response to an FOI Act request but it seemed to be grossly misleading.
We have now received more information which is given in this note: http://www.freedomfordrivers.org/ULEZ-Profits.pdf . This shows that the income they would be receiving after extension to the North/South Circular would be over £125 million per year which is even higher than our own previous estimates.
However, the profits after operating costs would be lower than from the central London Congestion Charge zone alone presumably because the operating costs over the wider area, with many more vehicles affected, would be higher. We do not yet know the implementation cost for the wider area. Can TfL afford the capital cost is one question yet to be answered, bearing in mind that they are heading for a deficit of £1 billion per annum.
But the key point is that the £125 million will be taken out of the London economy every year, plus there is the cost to vehicle owners in upgrading their vehicles to be compliant with the ULEZ which we previously estimated at over £200 million (see our previous note on the cost/benefit ratio of the ULEZ here: http://www.freedomfordrivers.org/Cost-of-the-ULEZ.pdf
We also pointed out in that note that so far as NOX emissions go, which is one of the main concerns, that these are rapidly falling anyway. Is the ULEZ, particularly the extension to within the North/South Circular, really justified? Despite what the Mayor says, there is no major public health crisis in London from air pollution. There are some localised problems which can be fixed by local measures. But extracting hundreds of millions of pounds in what are effectively taxes from Londoners for the ULEZ when it would be better spent on other useful and productive public health measures makes no sense.
The ULEZ will just move money from Londoners pockets to the scheme operators (private organisations) and the bloated bureaucracy that is TfL.
However one looks at it, the economics of this scheme and the justification for it in relation to the benefits to be obtained, when there are surely better solutions to the air pollution problem in London, seem dubious in the extreme. Both the Conservative Party and FairFuelUK have suggested alternative policies to tackle air pollution – you can see the latter’s stance on it here: https://www.fairfueluk.com/Survey-Background.html
Please make sure you oppose these irrational policies.
You can “follow” this blog by clicking on the bottom right.