Fleets operating in London have been dealt a double blow after the mayor, Boris Johnson, announced that not only is he planning to raise the congestion charge rising from £8 to £10, but also that the fleet operators’ discount will be scrapped.

Fleet operators with ten or more vehicles can currently apply for a fleet discount, in which they receive a £1 discount on the £8 charge.

This will be scrapped next year under the new proposals, although the removal of discount has been countered after it was confirmed that fleet operators will pay the same per vehicle as motorists using the new automated account system - CC Auto Pay.

Those who use the automatic payment system will benefit from a £1 reduction, paying £9 instead of £10 to enter central London.

The BVRLA said it fears that any benefits provided by the introduction of a new automated payment system will be outweighed by the cost to register.

 

 

“The removal of the £1 discount for fleets is disappointing. Transport for London says there will be a ‘modest’ registration fee for its new CC Auto Pay system, but until we know what the registration cost is, we cannot say if this new automated payment solution will benefit fleets," said its chief executive John Lewis.

“Many companies have not used the current fleet registration scheme because they are unable to assess on a vehicle-by-vehicle basis whether it is cost-effective to pay the £10 fee.

"If it costs £1 to register a car for the new system it will be worth it, but if it is much higher than that, it will carry on being a deterrent.”

 

“We will also be looking for details of whether the CC Auto Pay system can provide notification on a real-time basis rather than weekly, which would be especially useful for rental companies.

 

“Yet again, we have clear evidence that private road users are being charged for the cost overruns created by inefficient public transport planning.

"This time it has created a £1.7bn ‘black hole’ in Transport for London’s budget. With the London congestion charge doubling in less than seven years, is it any wonder that similar schemes are being soundly rejected up and down the country?”

The changes to the congestion charge will be introduced by December 2010 subject to legal processes.

"Drivers registering for CC Auto Pay can rest assured they'll never receive a penalty charge again,” said Johnson.

"The proposed increase in the charge will ensure that the system remains effective in controlling traffic levels in central London, and the revenue will also help us fund the vital improvements to London's transport network that all Londoners want to see."

The new system will calculate the number of journeys a vehicle makes within the zone each week, and debit customers' accounts on a weekly basis.