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London vehicle scrappage scheme extended

2 Jun 23 Faced with the threat of a building trade exodus, the mayor of London is expanding a scheme to help with the purchase of new vehicles.

All small businesses in the capital with fewer than 50 employees and any family in receipt of child benefit will now be eligible for financial support to replace polluting vehicles from the end of July.

This represents an extension of London’s scrappage scheme ahead of the expansion of the ultra-low emission zone (ULEZ) on 29th August 2023, imposing a £12.50 daily charge on non-compliant vehicles across all London boroughs. Anyone using a diesel van registered before September 2016 or a petrol van registered before January 2006 will be charged to travel almost anywhere within the M25. 

Builders Merchants Federation chief executive John Newcomb told the mayor of London, Sadiq Khan, in April that: “For local builders and property repair firms, additional ULEZ charges will have a hugely significant impact. The overwhelming majority are SMEs that already face inflationary price rises, squeezed margins & contractual pressures.” [See our previous report here.]

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Sadiq Khan said that he had listened to feedback and was therefore extending the scrappage scheme.

Sadiq Khan said: “The majority of vehicles in London are already ULEZ compliant and will not have to pay anything. But I completely understand the concerns of people who may not have a compliant vehicle and are worried about how they’ll make the transition.

“We already have the biggest-ever scrappage scheme in place to support Londoners on low incomes, London based micro-businesses and charities and disabled Londoners. But I’ve listened to families and small businesses in outer London who want more support and I’m pleased to be able to announce today a major expansion to the scheme run by TfL [Transport for London] to ensure we can help them.”

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