London Daily

Focus on the big picture.
Thursday, Jul 16, 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
UK Housing Reform Debate Intensifies Over Tenant Protection Measures
UK Defence Official Challenges Russian Narrative on NATO Readiness and European Security
UK Names Independent Member to Judicial Pension Board to Strengthen Oversight
UK Parliamentary Committee Sets New Framework for Select Committee Leadership Roles
UK Government Pushes Energy Savings Through School Solar Expansion Plan
UK Committee Reviews Future of Gaelic Broadcasting and Language Support
UK Government Expands Industrial Skills Support in Wales as Steel Sector Faces Change
UK Rejects Russian Claims That European Defence Spending Is Aggressive
UK Schools and Gaelic Broadcasting Among Areas Reviewed in New Parliamentary Inquiries
UK Housing Committee Calls for Stronger Tenant Protections Under Rental Reform Plans
UK Government Faces Pressure for Stronger Oversight After South East Water Failings Report
UK Parliament Opens Inquiry Into Safety of Women and Girls on Public Transport
UK Defence Ministry Appoints Interim Chief Defence Medical Officer During Transition Period
UK Government Announces Five Million Pound Skills Programme for Young People in Port Talbot
UK Government Launches Solar Programme to Cut Energy Costs for Schools
Met Office Warns Extreme Weather Is Becoming More Common Across the UK
UK Government Faces Internal Debate Over New Chancellor Appointment Under Andy Burnham
Andy Burnham Set to Become UK Prime Minister After Keir Starmer’s Resignation
UK Economy Grows Slightly in May as Supply Chain Disruptions Continue to Weigh on Industry
British Steel Moves Into UK Public Ownership to Protect Domestic Steel Production and Jobs
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Church of England Rejects Plan to Rewild Thirty Percent of Land by 2030
UK Parliament Examines Future of Gaelic Broadcasting in Scotland
Thames Water Faces Criticism Over Four Million Pounds in Bonus Payments
South East Water Crisis Puts UK Water Regulation Under Renewed Scrutiny
UK Report Highlights Racial Inequality in Homelessness Support Services
UK Government Defends Proposed Social Media Curfew for Teenagers Despite Criticism
Reform UK Gains Recognition as Major Political Party in New Polling
Labour Party Faces Internal Divisions Over Gaza Policy and Asylum Reform
Experts Warn UK Housing and Transport Infrastructure Is Unprepared for Rising Extreme Heat
UK Human Rights Committee Begins Review of Immigration and Asylum Bill
UK Parliament Launches Inquiry Into Declining High Streets Across England
Bank of England Governor Warns of Growing AI Risks to Global Financial Security
UK Public Finance Institutions Mobilize Fifty Billion Pounds to Support Growth and Jobs
UK Parliament Opens Inquiry Into Long-Term Strategy Toward Russia
UK-India Trade Agreement Takes Effect With Zero-Duty Access for Nearly All Indian Exports
Forget Tinder: The Surprising Platform Where People Find Love
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
×