The contract hire company XLCR Vehicle Management Ltd has warned London business owners that they could soon be worse off if London Mayor Sadiq Khan rolls out a new measure in the capital.
As the number of EVs on the road increases, Transport for London is set to charge these vehicles a £15 daily congestion charge for entering the city centre.
Alex Woodcock, motoring expert at XLCR Vehicle Management Ltd, warned that introducing such a measure would harm businesses who depend on an electric van.
He explained: “If drivers are inevitably going to face extra charges, we urge the Government to create stronger incentives for businesses when purchasing electric vehicles, such as offering better tax benefits.
“Otherwise, we fear this will deter businesses from transitioning to electric, which could have detrimental effects on the environment.”
Whilst the Government are still in support of electric vehicles, with plans to ban the sale of new petrol and diesel models by 2035, many of the incentives to encourage buyers to make the switch are ending. This includes drivers in London having to pay the standard congestion charge.
As a result, a growing number of businesses and organisations, including Ocado and the AA, have signed an open letter to prevent the change being introduced in December 2025.
The companies warned that those who need to enter the zone each day will see a £5,500 increase to their motoring bills.
Alex warned that forcing electric van drivers to pay the charge will put businesses at risk and prevent others from making the switch.
He added: “Currently for taxable benefits, there is no difference to the business purchasing electric vehicles.
“Understandably, fuel saving plays a big part for electric van owners but the sheer cost difference between them and diesel makes businesses see no point, especially if they’re still having to pay £15 a day from January.”
