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What Does ULEZ Mean For Your Industry?

ULEZ - What is it?

A Ultra Low Emission Zone (ULEZ) will be in operation from 8 April 2019 in central London, with the intention of helping to boost the air quality. Most vehicles like cars and vans will have to follow current, stricter requirements for exhaust pollution (ULEZ requirements) or pay a regular fee to operate inside the ULEZ region. This field is to be expanded further to include the North and South Circular from October 2021.

What does this mean for you?

The ULEZ daily charge will be payable from 8th April 2019. It will be:

£12.50 for most vehicle types, including cars, motorcycles, and vans (under 3.5 tonnes)

£100 for heavier vehicles, including lorries (over 3.5 tonnes) and bus/coaches (over 5 tonnes)

This will be in addition to the weekday congestion charge and the Low Emission Zone (LEZ) charge already in place but will replace the T-Charge.

As with the LEZ (but not the Congestion Charge), the ULEZ will operate 24 hours a day, 365 days a year. Vehicles, which access the zone and do not meet the required standard and fail to pay the daily charge will be issued with a Penalty Charge Notice (PCN) which will be sent to the registered keeper.

London Mayor, Sadiq Khan announced in November 2017:

“So I am pleased to confirm that from 8th April 2019 – 17 months earlier than planned – stricter standards for diesel vehicles will apply 24/7 across central London. This builds on the success of the T-Charge and is part of my comprehensive plan to clean London’s air.”

“I’ve taken the bold action we need to protect our children, but we now urgently need the Government to step up and provide the support to Londoners and businesses required to help them meet these crucial standards.”

It’s hoped that the ULEZ will reduce the number of polluting vehicles entering the center of London and beyond by charging vehicles that do not meet the new emissions standards. However, the implications for businesses are expensive and it is wise to give this consideration ahead of the new ULEZ regulations in April 2019.

How can you determine if your vehicle meets the required standard?

• Euro III – all new registrations after 1 Jan 2001
• Euro IV – all new registrations after 1 Jan 2006
• Euro VI – all new registrations after 1 Sept 2015


Your Euro emissions standard may be listed on your V5C vehicle registration certificate, under section D. Otherwise, you may need to contact your vehicle manufacturer to check.

Euro 6 became mandatory for all new heavy-duty engines for goods vehicles and buses from January 2014, September 2015 for cars and light vans, and September 2016 for larger vans up to 3.5 tonnes.
A vehicle checker facility is available on the Transport for London website www.tfl.gov.uk

The ULEZ charges across London will cover all vehicles that fail to meet certain emissions standards and be policed by London’s network of Automatic Number Plate Recognition (ANPR) cameras.

Other major cities in the UK are also running consultations on their own planned future charges. So far the following Cities are considered the most polluted and will be ‘Clean Air Zones’ by 2020:

• Birmingham • Leeds • Nottingham • Derby • Southampton

It’s not just cars and vans that will be subject to extra charges in London:
Motorcycles, moped, motorised tricycles, quadricycles..

Your options?

• Pay the Charge as per table
• Consider replacing all of your vehicle/s
• Replace a proportion of your fleet, reassigning older vehicle to routes outside of the ULEZ zone
• Consider fitting a retrofit system which will make the vehicle’s exhaust and emission compliant.
• Plan your procurement to gradually replace your existing fleet.

How can we help?

• New, used and reconditioned assets funded
• Terms from 12 to 84 months periods
• VAT Deferral
• Credit-Lines arranged
• Zero Deposit Options
• Residual Values/balloon payments
• Fixed/variable rate agreements
• Refinancing of existing fleet
• Invoice Finance
• Business loans

Creative Funding Solutions have put together the basic facts about the zoning levies currently affecting drivers in London, and the planned forthcoming changes, which may impact on your procurement decisions.

The Freight Transport Association has recommended that its members refresh their fleets before the forthcoming changes take effect.

“Information shown within this fact-sheet has been compiled from numerous sources and may not be a complete or accurate picture – Creative Funding Solutions accepts no responsibility for the accuracy of the information supplied”

Sources: https://tfl.gov.uk

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