Supply chain concerns over ULEZ compliant vehicles ahead of expansion

Logistics UK is calling for fleet operators to be exempt from charges incurred by the expansion of London’s ultra-low emission zone (ULEZ), while they struggle to source compliant vehicles.

The ULEZ will be expanded to operate across all London boroughs up to the existing Low Emission Zone (LEZ) boundary from August 29. 

It means that drivers of older, polluting cars and vans will have to pay £12.50 a day to use their vehicle across Greater London.

Denise Beedell, senior policy manager at Logistics UK, said: “Recent challenges such as the Covid-19 pandemic and the war in Ukraine have impacted the automotive supply chain, including the supply of semi-conductors which are vital components in all vehicles.”

She explained that as more clean air zones have been introduced around the country, the demand for Euro 6 vehicles has only intensified.  

“Businesses that rely on second hand vehicles, such as SMEs, have only limited options for purchasing a Euro-6 vehicle, and delays on the delivery of electric vehicles are also preventing operators from switching their fleets at this point,” she added.

As a result, Logistics UK has previously called on Transport for London (TfL) to introduce mitigations to allow those who can demonstrate that they have ordered – or plan to order – a new or replacement compliant vehicle, to remain exempt from additional charges should they not receive their vehicle delivery in time for the proposed ULEZ expansion start date.  

Beedell continued: “Logistics UK is today reiterating these calls to ensure operators are not disproportionately impacted by vehicle production delays once the expansion is in place.

“Van operators are at the heart of the capital’s economy, delivering all that businesses and homes require but have been impacted by significant rises to inflation and other operating costs.

“Logistics UK members are fully committed to supporting the Mayor of London’s aims to improve air quality in the capital with operators of goods vehicles over 3.5 tonnes meeting tougher emissions standards since the London-wide Low Emission Zone requirements were tightened in March 2021.

“However, with a lack of readily available alternatives, further daily charges will divert funds that could otherwise be invested in reducing emissions and decarbonising operations.” 

A £110m scrappage scheme has been announced alongside to support Londoners on lower incomes, disabled Londoners, charities and small businesses and sole traders.

Successful scrappage applicants will receive a grant to scrap or - for the first time - retrofit their vehicle for certain vans and minibuses.