Congestion Charge hike nets TfL an additional £86m

Changes to the London Congestion Charge introduced in June 2020 led to an £86m revenue boost for Transport for London (TfL), last year.

Mayor Sadiq Kahn increased the daily rate from £11.50 to £15 and adjusted the operating hours to includes 6PM-10PM and weekends, temporarily on June 22, as TfL struggled for revenue as a result of declining public transport use during the Coronavirus pandemic.

A leaked email by Heidi Alexander, the deputy mayor for transport, seen by Autocar Magazine shows that TfL is projecting an additional £113m of income “as a consequence of implementing the temporary changes to the Congestion Charge” if they were to be in place until April 2021, including the £86m that was generated during 2020.

Autocar reported that the email also confirmed the boost in revenues “takes account of the cost to TfL of implementing the temporary changes as well as the reduction in traffic volumes and temporary suspension due to the pandemic”.

TfL is now forecasting a total income of £232m this financial year from Congestion Charge payments.

In November, the Government agreed a six-month £1.8 billion funding deal with TfL after asked for a £5.7bn package to prop up services for the next 18 months.

As part of the deal, TfL’s plans to expand the existing Congestion Charge zone were taken off the table. Kahn has since asked for a £500 million share of the funds from vehicle excise duty (VED).