Sadiq Khan faces mounting pressure to introduce exemptions for independent garages and professional drivers as Transport for London proposes sweeping changes to the Congestion Charge that could see electric vehicle owners paying road fees for the first time since the scheme began.
The Independent Garage Association (IGA) has called on the Mayor to exempt essential vehicle servicing, MOTs, and repairs at independent garages from the charge, warning that the proposed changes could inadvertently penalise businesses that “keep London moving safely” whilst supporting the transition to electric vehicles.
Under the proposals currently being consulted on, the daily Congestion Charge will increase by 20 per cent from £15 to £18 from 2 January 2026, marking the first rise in five years. In a significant policy shift, electric vehicles will lose their longstanding 100 per cent exemption from the charge, with TfL introducing a new Cleaner Vehicle Discount offering only partial reductions.
Jonathan Douglass, Director of the IGA, said: “London has historically led the way on congestion and clean air measures, with its policies often shaping approaches in other cities. Getting this right is crucial; keeping essential servicing exempt ensures any future changes are fair, safety-focused, and supportive of the independent garages that are vital to road safety.”
Impact on Independent Garages
The IGA has raised concerns that the increases could “inadvertently” penalise independent garages and the motorists who rely on them for essential services. The association explained that increasing the charge and bringing EVs into the payment plan “will push up bills for motorists and potentially squeeze already thin margins for independent garages.
Of particular concern is the impact on multi-day repairs, where workers could incur additional daily fees on top of labour and parts costs, potentially making commuting into London unaffordable for skilled technicians. This could create significant challenges for garages operating within or near the Congestion Charge Zone, which covers central areas including Soho, Mayfair, Piccadilly Circus, Covent Garden, Westminster and Waterloo Station.
The association represents the UK’s independent garage sector, which carries out over 70 per cent of all service and repair work nationally. With many garages already facing pressure from unchanged MOT fee caps that have remained static since 2010, the additional burden of increased congestion charges could prove challenging for businesses operating on thin margins.
Electric Vehicle Exemption Ends
The proposed changes mark a dramatic shift in London’s approach to electric vehicles. Since the Congestion Charge was introduced in February 2003, various forms of cleaner vehicle discounts have been offered to encourage the uptake of low-emission vehicles. The current 100 per cent exemption for electric vehicles was due to expire on 25 December 2025, having been in place with a seven-and-a-half-year notice period.
From 2 January 2026, TfL proposes a tiered discount system:
- Electric cars registered for Auto Pay will receive a 25 per cent discount, paying £13.50 instead of £18
- Electric vans, HGVs, and quadricycles registered for Auto Pay will receive a 50 per cent discount, paying £9
- From 4 March 2030, these discounts will be further reduced to 12.5 per cent for cars and 25 per cent for commercial vehicles
TfL estimates that maintaining the current exemption would lead to an additional 2,200 vehicles in the Congestion Charge Zone on an average weekday, undermining the scheme’s primary objective of reducing traffic congestion.
Contradicting EV Policies
The IGA has stated that reducing benefits for EV drivers “directly contradicts” the Government’s wider objectives as part of the Zero Emission Vehicle mandate. The group added: “Consumers who have been encouraged to make the switch to EVs with the promise of lower running costs may feel penalised, while garages that have already invested heavily to support this transition are left disadvantaged.”
This concern has been echoed by other critics, including Labour’s own transport spokesperson on the London Assembly, Elly Baker, who called for traders to be exempt from the changes and argued that “TfL should be backing the transition to electric vehicles, including for car clubs, with a 100% discount on the congestion charge.
The timing is particularly sensitive as the UK automotive industry navigates the transition to electric vehicles, with many businesses and consumers having made significant investments based on the promise of ongoing benefits and lower running costs.
Consultation Process Under Fire
The IGA has also opposed proposed changes to Mayoral Guidance that would cut the minimum consultation period for major variations from 10 weeks to six weeks and allow the Congestion Charge to increase automatically in line with Tube fares. This would enable annual increases at a maximum rate of inflation plus one per cent without requiring public consultation.
The current consultation, which runs until 4 August 2025, has already attracted significant attention from various stakeholder groups. Caroline Russell, a London Assembly Member, has published her response supporting the increases whilst calling for even more radical changes, including extending charging hours to evenings and weekends.
Official Response
Seb Dance, Deputy Mayor for Transport, defended the proposals, stating that keeping London moving by reducing congestion “is vital for our city and for our economy. He highlighted that the Congestion Charge has been a “huge success” since its introduction but emphasised that TfL needs to ensure “it is fit for purpose.”
Mr Dance warned that sticking to the “status quo” would see around 2,200 more vehicles using the Congestion Charging zone on an average weekday next year. At the same time, we must support Londoners and businesses to use greener and more sustainable travel,” he said, noting that the proposals include “substantial incentives” to help Londoners continue switching to cleaner vehicles.
The Deputy Mayor encouraged everyone to participate in the public consultation, which remains open until early August 2025.
Residents’ Discount Changes
Additional changes are proposed for the residents’ discount scheme. From 1 March 2027, new applicants living within the Congestion Charge Zone will only be eligible for the 90 per cent discount if they own an electric vehicle. Existing residents who already receive the discount will retain their status, provided they renew their registration annually.
This represents a significant shift in policy, as the residents’ discount has historically been available regardless of vehicle type, recognising that those living within the zone may have limited alternatives for vehicle storage and use.
Wider Context
The proposals come at a time when congestion costs London billions annually, with vehicle congestion costing the capital £3.85 billion in 2024 alone, averaging £942 per driver. The Congestion Charge scheme, inspired by Singapore’s Electronic Road Pricing system, remains one of the largest congestion charging zones globally despite the removal of the Western Extension in 2011.
Transport for London has emphasised that the charge serves multiple purposes beyond revenue generation, including improving air quality, reducing road danger, and encouraging modal shift to public transport, walking, and cycling. The zone is served by 71 train stations and 700 bus routes, providing what TfL describes as “many sustainable alternatives to driving.”
Industry Concerns
The proposed changes have sparked debate about the future of London’s transport policy and its impact on businesses. Independent garages, already facing challenges from evolving vehicle technology and static MOT fees, now face the prospect of increased operational costs that could affect their competitiveness and ability to serve customers.
Mr Douglass reiterated the importance of getting the policy right: “Such measures risk eroding confidence in EV ownership at a time when uptake needs to be supported and incentivised, not discouraged.”
As the consultation period continues, the Independent Garage Association and other industry groups are urging members and motorists to make their voices heard, emphasising that the decisions made now will shape London’s transport landscape for years to come.
Follow for more updates on Britannia Daily
Image Credit (Shortened):
Sadiq Khan at Pride in London 2016 (photo call) – by Katy Blackwood, licensed under CC BY‑SA 4.0, via Wikimedia Commons.
