Carrot not stick approach needed for small firms with ULEZ launch

Local News 25 Oct 2021

More support is needed to help London’s small businesses achieve net-zero

The Ultra-Low Emission Zone (ULEZ) extension will come into force on Monday 25 October 2021 and FSB London is still aware of many small businesses who are concerned about the impact it will have on the cost of doing business in the capital.

Results of a recent survey undertaken by FSB London highlighted that more support is needed to help London’s small businesses achieve net-zero with the data revealing that 79% of London small businesses considering the adoption of a green policy as important.

London’s small businesses have been severely impacted by the pandemic and so support is desperately needed for them to embrace the ULEZ extension.

FSB London is calling on the Mayor to listen to small firms through:

  • Reintroducing a Diesel Scrappage scheme for micro businesses that proved successful in 2019
  • Using the financial penalties of those who fall foul of the ULEZ to be put into a ULEZ bank account (for a two year period) which can be used to purchase a compliant vehicle.
  • Soft implementation in the first month of launch so as to give businesses who incur a first charge to be given a warning and not a financial penalty.

Michael Lloyd, London Infrastructure Policy Lead for FSB, said: “Small businesses want to do the right thing by the environment and help improve the air quality. Yet we must recognise that for many they simply cannot afford to replace their business vehicles - and will have vehicles aged around seven to ten years old which are going to be taken out of the business at a significant loss.

“We hear of others who have sold their work van but have then not been able to source a ‘like for like’ replacement. The cost of doing business in the capital is high and FSB London asks for a month ‘period of grace’ to enable small businesses time to adjust to the ULEZ expansion charging zone plus a series of financial support measures to help take businesses on the net zero journey to 2030”.


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