London Daily

Focus on the big picture.
Friday, Sep 11, 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
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
×