Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Mike Waters' Blog: 21 March 2008
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Mike Waters' Blog: 21 March 2008

Date: 21 March 2008

Mike Waters is senior insight & consultancy manager at Arval, the leading vehicle leasing and fleet management company.

Despite the West Midlands recently rejecting a £5 congestion charge, Ken Livingstone has branded the London scheme a success, stating that it has cut congestion and created environmental benefits, but is the new £25 charge for the highest polluting vehicles really going to hit the people that it is supposed to target?

Congestion charge: who foots the bill?

Despite the West Midlands recently rejecting a £5 congestion charge, Ken Livingstone has branded the London scheme a success, stating that it has cut congestion and created environmental benefits, but is the new £25 charge for the highest polluting vehicles really going to hit the people that it is supposed to target?

You will be well aware by now that vehicles emitting more than 225 grams of CO2 per kilometre, as well as those registered before March 2001 with engines larger than 3000cc, will be forced to pay £25 to enter central London. Transport for London is predicting up to 22,000 cars no longer entering the zone when the new fee comes in.

Ken Livingstone has not denied that there will be losers, but actually, who will the losers be? Probably not just the uncecessary 'gas guzzlers' that the charge is aimed at.

For example, some people carriers and estate cars will be hit, often the vehicle of choice for larger families. These families in London tend to do lower mileage, use public transport more and keep their vehicles for longer so often producing far less CO2 than a smaller vehicle elsewhere due to lower mileage.

I expect to see a shift in how these groups operate and a move away from sharing larger vehicles. For instance, lets take the laborious school run. Under the new charge it may no longer be economical for parents to take turns at bundling the kids into the back of the people carrier, an efficient method. Instead we will see families downgrading to smaller cars and doing the school run separately, therefore increasing congestion?

And its not just the people who can afford to swap their car that will feel the pinch, many ordinary families in London will be subject to these charges as they will be unable to replace their vehicles by October. You could argue that the mayor has given the green light for richer people to buy smaller cars and enter the zone for free while families who struggle with one big car are left licking their wounds.

So the £25 charge will not just hit the wealthy 'Chelsea Tractor' driver but also groups who are less financially equipped for this increased cost. It could also create a whole shift in vehicle use and type over time as people adapt to the new rules. The bottom line for me is, what is the charge actually for? To reduce congestion, affect vehicle purchasing habits, improve environmental performance or raise revenue. I'll leave you to decide.



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