London Daily

Focus on the big picture.
Monday, Oct 05, 2026

Sadiq Khan considering £3.50 daily charge for drivers entering London

Sadiq Khan considering £3.50 daily charge for drivers entering London

Capital’s mayor asks TfL to begin feasibility study for plan to raise £500m a year
Drivers could face a £3.50 daily charge to enter Greater London under proposals from the mayor of London to address the capital’s funding crisis.

Sadiq Khan has asked Transport for London to start feasibility studies for the plan to raise £500m a year.

The boundary charge would be levied on vehicles registered outside the capital crossing into the whole of London – an area almost 80 times larger than the central congestion zone.

An independent review into TfL’s finances, which have been badly hit by the loss of tube fares after the pandemic, suggested that road charging would be the best source of new revenue.

The review said cuts to bus services in outer boroughs, scrapping the night tube, and ending the subsidy for the “Boris bike” cycle hire scheme would provide potential savings but could inflict further congestion and economic damage.

The independent panel was commissioned by Khan during fraught negotiations with the government for emergency funding, after passengers were told to avoid public transport to help stop the spread of Covid-19.

Khan urged ministers to “play fair” by London to assure the future funding of the capital’s transport network, and to allow the capital to keep the £500m a year paid in vehicle excise duty by London-based drivers.

He said the money was spent outside London while TfL used fare income to fund maintenance of major roads in the capital.

The boundary charge could also reduce congestion and emissions and encourage greater use of sustainable transport. On an average weekday about 1.3m vehicles travel into London.

Development, consultation and implementation of the scheme would be expected to take at least two years.

Khan said: “Ministers have failed to play fair by Londoners when it comes to financing our world-renowned transport system. It is high time they did so. It is not fair on London that our drivers should subsidise the rest of the country’s roads and get nothing in return.

“We can’t go on expecting public transport fare-payers to subsidise the costs of road maintenance.”

Green groups welcomed the proposal and urged Khan to go further with smarter road charging schemes.

The business group London First said a range of measures were needed but the boundary charge “could certainly be part of such a package”, while urging central government to give London more powers to raise revenue.

Logistics UK said the charge would be “a significant blow” to the road haulage sector and only paper over the cracks of TfL’s problems.
Newsletter

Related Articles

0:00
0:00
Close
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
UK Schools Report Thousands of Child-on-Child Sexual Offences
High Court Overturns Ban Blocking Gaza Families From Reuniting With Relatives in UK
G7 Authorizes Emergency Fuel Release as UK Diesel Prices Hit £2 a Litre
France and Italy Draw 1-1 in Nations League Match
Pope Leo XIV and Prince Albert II of Monaco Meet in Metz
SNCF Expands Low-Cost Ouigo High-Speed Service Between Lyon and Bordeaux
Paris Expands Dedicated Cargo Bike Routes for Urban Deliveries
French Film Industry Pushes for Tighter Streaming Investment Rules
Marseille Court Hands Down Prison Terms in Public Procurement Corruption Case
LVMH and Kering Rely on US Demand as Chinese Luxury Spending Slows
Toulouse Aerospace Sector Launches €80 Million Modernization Fund
Javier Milei Courts French Investment in LNG and Lithium
Mistral AI Launches Sovereign Model for European Public Services
French Competition Authority Fines Retailers €40 Million Over Misleading Promotions
France Records Exceptional Electricity Exports as Nuclear Output Recovers
Dassault Aviation Expands Rafale Assembly Capacity at Mérignac
Sanofi Invests €1 Billion in New Biologics Production Hub Near Lyon
France Protests Germany’s Extension of Border Controls Into 2027
French Public-Sector and Transport Unions Threaten National Strike
France Deploys Riot Police After Violence in Lyon Suburbs
French Anti-Terrorism Prosecutors Investigate Radicalized Flydubai Co-Pilot
France’s Defense Budget Surpasses NATO’s 2% of GDP Target
French Government Faces No-Confidence Threat Over Budget
France and G7 Release 100 Million Barrels From Strategic Oil Reserves
France Convenes Emergency Defense Council Over Threats to Commercial Shipping
France and Germany Coordinate Military Response After Russian Strikes on Kyiv Infrastructure
UK Police Release Six Iranian Nationals on Bail After RAF Fairford Security Alert
UK Business Confidence Falls as Energy Costs and Tax Uncertainty Rise
Cornwall Insight Warns UK Energy Bills Could Rise 16% in January
UK Introduces Zero VAT on Household Electricity Bills
UK 30-Year Gilt Yield Hits 6% as Bond Market Pressures Intensify
UK Introduces Stricter Subcontractor Checks and Expanded Trade Union Access
Green Party Proposes Three-Year Emergency Freeze on Private Rent Increases
UK Treasury Committee Seeks Tax Clarification Over Manchester City Investigation
Royal Marines Deploy to Faroe Islands for Northern European Security Exercise
UK Business Confidence Weakens as High Costs Delay Investment
UK GDP Growth Revised Up to 0.5% in Second Quarter
Bank of England Warns of Financial Stability Risks From Autonomous AI
UK Expands Early Prisoner Release Scheme to Ease Overcrowding
UK Records Worst Bluetongue Outbreak on Record Across Livestock Farms
UK Government Faces Shrinking Fiscal Headroom Ahead of October 28 Budget
UK 30-Year Gilt Yield Reaches 6% as Energy Shock Drives Borrowing Costs Higher
×