Request ID: FOI-1691-2324 Date published: 20 September 2023
You asked
Please provide latest estimates for income from ULEZ for the current financial year and future years for which estimates are available.
How much of the estimated income is estimated to be derived from penalty charges?
How much of the estimated income is forecast to be paid by residents of London boroughs and how much by non-residents?
We answered
Our Ref: FOI-1691-2324
Thank you for your request received on 23 August 2023 asking for information about estimated income from the Ultra Low Emission Zone (ULEZ). Your request has been considered in accordance with the requirements of the Environmental Information Regulations (EIR) and our information access policy. I can confirm that we hold some of the information you require. You asked: • Please provide latest estimates for income from ULEZ for the current financial year and future years for which estimates are available. • How much of the estimated income is estimated to be derived from penalty charges? • How much of the estimated income is forecast to be paid by residents of London boroughs and how much by non-residents? TfL estimates that the London-wide ULEZ could generate up to £200 million a year in net revenue for the first two years following expansion on 29 August but this will decline sharply with no surplus by 2026/27 and net proceeds from the ULEZ projected to be negligible as the number of compliant vehicles increases and usage of non-compliant vehicle decreases. The aim of the ULEZ is to help improve air quality by reducing the number of vehicles in London that do not meet emissions standards. It is a statutory requirement that any net revenue generated by our road charging schemes (the ULEZ, LEZ or the Congestion Charge) is reinvested back into London’s transport network, including investing in improving transport links in outer London. All money received from the ULEZ is reinvested into improving London’s public transport network, such as expanding bus routes in outer London. The estimates are subject to a significant financial range (+/- 50% against the values above). The net operating surplus is composed of the following for each financial year:
FY 2023/24 (Oct-March) (6 months) £m
FY 2024/25 £m
FY 2025/26 £m
A
Income from charge payers
150
175
70
B
Net income from penalty charges
100
125
40
C
Operating costs
(50)
(80)
(30)
D
Net Operating Surplus (A+B+C)
200
220
80
We do not record income split from residents and non-residents of the ULEZ. If this is not the information you are looking for please do not hesitate to contact me. Please see the attached information sheet for details of your right to appeal.
Yours sincerely
Gemma Jacob Senior FOI Case Officer FOI Case Management Team General Counsel Transport for London
