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London Chamber of Commerce and IndustryLondon Chamber of Commerce and Industry
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ULEZ Reforms Must Support All Small Businesses To Mitigate Economic Loss

Thursday 16 February 2023

London Chamber of Commerce and Industry (LCCI) has urged London Mayor, Sadiq Khan, to take concrete actions to reform the Ultra-Low Emission Zone (ULEZ) vehicle scrappage scheme.

LCCI Chief Executive, Richard Burge, has written to the Mayor calling for the ULEZ vehicle scrappage scheme to provide support for all small businesses in London. The expansion of ULEZ to the whole of the capital puts extreme pressure on small and medium-sized enterprises who have shown remarkable resilience in a volatile market.

Richard Burge has called on the Mayor to take advantage of the recent decision of the London Assembly to invest further into the vehicle scrappage scheme so that all small businesses can be covered in advance of the ULEZ roll-out on 29 August 2023.

There is no doubt that the ULEZ is a step in the right direction towards reducing air pollution that will save many lives. It is a stepping stone to making London one of the greenest, sustainable and safest cities to live and work.

London Chamber of Commerce and Industry Chief Executive Richard Burge, said:

“The ULEZ scheme, introduced as a public health initiative, should not snowball to become another economic issue that London businesses need to worry about. The proposed start of the wider ULEZ area represents a challenge for businesses. It is imperative that the Greater London Authority (GLA) reviews its stance and makes reforms to provide support for small businesses and not just sole traders and micro businesses. This is not just critical towards protecting the London economy but will also ensure more vehicles are compliant so that air quality is tangibly improved.”

Head of Policy and Public Impact at London Chamber of Commerce and Industry, James Watkins, said:

“The ULEZ scheme has the capability of transforming London into one of the cleanest cities in the world. However, we also need to make sure that its roll-out doesn’t negatively impact businesses due to a short turn-around time and lack of support. Due to extended lead times for new vehicles, the second-hand vehicle market is also seeing significant upward pressure on prices. This could further inhibit the ability of firms to switch to ULEZ compliant vehicles before the proposed start date for the extended zone. “

The LCCI therefore, suggests that the GLA creates a ‘green transition list’ for businesses that can demonstrate they have purchased a ULEZ compliant vehicle to replace their non-compliant vehicle. Those that are waiting for their compliant vehicle to be delivered would then be able to use their non-compliant vehicle in the extended ULEZ area in the interim. This would ensure there is no disruption in the normal working of businesses while the scheme is being implemented.

The LCCI recognises and welcomes the positive steps that have been taken to improve the vehicle scrappage scheme. By taking advantage of the recent decision of the London Assembly, London can have a scrappage scheme that works for all the groups – and leads to real and lasting change in air quality.

You can read the letter in full here.



London Chamber Press Office

T: +44 (0)20 7203 1897

E: press@londonchamber.co.uk

Notes To Editors:

  • Following a campaign by the London Chamber of Commerce and Industry (LCCI) calling on reforms to the scheme, ahead of the ULEZ expansion in August, the London Assembly passed an amendment to the Mayor’s budget, that could help Londoners during this cost of living crisis. Within the Greater London Authority’s £125 million of unallocated reserves, the assembly called for this money to be used to increase the scale and the scope of the vehicle scrappage scheme which, until now, has not been fit for purpose. Read more about LCCI’s campaign here.