Sadiq Khan’s new car tax could ‘negatively’ impact UK economy - ‘Lower the toll!’

The levy would see drivers pay to cross the bridges and follows on from a consultation by Transport for London which ended earlier this week.

But the London Chamber of Commerce and Industry (LCCI) has warned that the proposed tolls must be significantly reduced, or it risks having a huge impact on the logistics industry which relies on the tunnels.

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Now as Transport for London looks to review the feedbackon the consultation which ran over summer, experts have already called for change.

Karim Fatehi, CEO of the organisation, said: “London’s logistics industry plays an essential role in keeping the city’s economy moving.

“Without logistics firms, London’s economy would grind to a halt. The proposed toll rates for large vans and HGVs at peak times in particular represent a significant cost to businesses, which could impact their ability to operate efficiently and negatively impact London’s economy.”

While LCCI stated that it welcomed the consultation, it did flag concerns about the impact of the proposed toll rates on businesses, particularly for larger vehicles such as vans and HGVs.

The new tax measure would see drivers charged £1.50 to use the new Silvertown Tunnel and existing Blackwall Tunnel during standard off-peak hours.

The charges would be in place from 6am until 10pm, seven days a week, with the fare increasing by £1 for motorbikes and an extra £2.50 for cars and small vans during peak hours.

Although TfL did note that it would give a 50 per cent discount for low-income drivers in 12 boroughs in east and south-east London, as well as the City of London.

There would also be a £1 discount on the standard off-peak charge lasting for one year for small businesses, sole traders and charities operating in Tower Hamlets, Newham and Greenwich, but LCCI warned this would not be enough.

The organisation said it wasconcerned that the higher toll rates for larger vehicles may incentivise businesses to increase their use of small vehicles to avoid the fees which would “counteract the very goals that the tolls are designed to address”.

Additionally, the body highlighted how many drivers would simply find alternative travel routes to avoid the Silvertown and Blackwall tunnels.

“Traffic may move to outer London areas where crossing is more cost-effective for businesses, putting additional pressure on the city's outer roads,” it detailed.

Offering TfL some alternative ideas, the group explained that lower toll rates for all vehicles to match the Dartford Crossing could be a stronger move as this would prevent traffic from diverting to outer London areas.

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The body added: “By implementing these recommendations, TfL can balance the need for revenue with the importance of supporting the city's business community.

“LCCI is committed to working with the Mayor of London, TfL, and all stakeholders to find solutions that will support both the city’s world leading economy and its environmental goals.”