Letter to editors on Vehicle Excise duty

Dear Editor,

The pandemic continues to cripple Transport for London’s main source of income, which comes from passenger fares.

Despite this, the Government has so far refused to provide TfL with the sustainable and long-term funding deal it needs to keep services running smoothly and to secure the future of key infrastructure projects- which are crucial for job creation and supporting London’s economic recovery.

This has meant that City Hall and TfL have been forced to find other ways of making up the financial deficit they face in future years.

One of the fairest solutions would be for Ministers to allow London to keep hold of the money it collects through Vehicle Excise Duty. This is worth around £500 million per year, and is currently spent to subsidise road maintenance in other parts of the country.

If the Department for Transport will not come to the table to discuss this, the Mayor has signalled that he might need to explore the option of a new boundary charge in future years. This would mean that motorists with vehicles registered at addresses  outside the capital would need to pay a £3.50 charge to drive into Greater London.

The ball is now in the Government’s court.


Andrew Dismore AM

London Assembly Member for Barnet and Camden