Motorists have been warned to expect above-inflation annual hikes in the London congestion charge and the Blackwall and Silvertown tunnel tolls until the end of the decade.
The central London C-charge rose by 20 per cent, from £15 to £18, in January while drivers of electric vehicles lost their 100 per cent exemption.
This means that drivers of electric vans and lorries now pay £9 a day while battery-powered cars, including minicabs, are charged £13.50 a day.
The Blackwall and Silvertown tunnel tolls were introduced by Mayor Sir Sadiq Khan in April 2025 and cost £1.50 off-peak and £4 at peak times, per crossing.
Transport for London’s new finance chief Patrick Doig confirmed on Wednesday that, under TfL’s new three-year business plan, both the C-charge and the tunnel tolls are expected rise each year from 2027 by the RPI rate of inflation plus one percentage point.
Mr Doig said the aim was to ensure that the levies charged to drive a private car in parts of London rose in line with the annual increase in TfL fares for public transport in the capital – the Tube, bus and rail network.
The annual increases are expected to be announced each January before coming into force in the March of that year.
However, he said there would not be similar annual increases in the cost of the Ulez clean air scheme, which currently costs £12.50 a day.
Mr Doig told the TfL board: “On congestion charge, this plan assumes an annual price increase of RPI + 1 from 2027 on the charge, in line with the planning assumptions that we have been making on public transport fares.
“But the decision-making will be subject to impact assessments and ultimately [will be] mayoral decisions.
“It is also assumed that the tunnel user charge on the Blackwall and Silvertown tunnels will increase in the same way.
“But those assumptions do not apply to the ultra-low emission zone [Ulez].”
TfL will pocket about £320m a year from motorists in congestion charge levies and fines, up more than £110m, as a result of the January increases in the headline rate and the removal of the 100 per cent exemption for electric vehicles.
Electric vans now get a 50 per cent discount while electric cars get a 25 per cent discount.
The Silvertown and Blackwall tunnels generate about £10m a month in tolls and fines, but much of the income has to be used to repay the £2.2 billion cost of building the Silvertown tunnel under a PFI contract.
Tube and TfL train fares are due to rise by six per cent in March – costing passengers an extra £168m a year.
Bus fares will be frozen at £1.75 until July.
Mr Doig said TfL’s “planning assumption” was that fares would rise by RPI+ one per cent in subsequent years, in accordance with the Government’s June 2025 capital funding settlement, which provided TfL with £2.2bn of investment.
However, Sir Sadiq has the ability to set specific fares rather than impose a blanket increase. “The actual TfL fares will be a decision for the mayor,” Mr Doig said.
TfL’s passenger income in 2024/25 was £5.3bn – a massive £1.6bn less than assumed before the pandemic hit.
“This £1.6bn shortfall continues to be the most significant underlying issue for our finances,” TfL’s budget documents said.
