Food delivery firm Ocado has joined more than 40 businesses to sign an open letter to London mayor Sadiq Khan asking him to jettison plans extending the congestion charge to electric vans.
Drivers of electric vehicles will have to pay the same £15 a day charge as petrol and diesel vehicles in central London from Christmas Day 2025.
The firms, which also include AA and Openreach, say the charge will put people off making the shift to electric vehicles.
They said the current scheme where firms pay £10 a year to be exempt from the charge was “fundamental” to their decision to invest in electric vans and having to pay the congestion charge would cost them £5,500 per vehicle per year.
AA President Edmund King said air quality in the capital had improved, adding: “Cutting the discount for electric vans is a detrimental policy which could backfire on the health of Londoners and the economy of London.
“We still need to encourage zero emission transport rather than deter it.”
Oliver Lord, UK head of Clean Cities, said that Khan’s decision was “at odds with his track record and his commitment on climate”.
“Ultimately, small businesses are those set to suffer the most, with the progress towards a cleaner, electric future choked off in an economic situation already fraught with challenges,” Lord said.
“How is it right that a dirty diesel van pays the same as a cleaner electric vehicle in the most polluted part of the UK?”
A spokesperson for the Mayor said the Cleaner Vehicle Discount was ending because the increase in electric vehicles had reduced the impact of the congestion charge.
“However, the Mayor recognises the issues raised relating to electric vans, including the importance of supporting those businesses who have done the right thing and moved to cleaner vehicles.
“We are working with TfL to see what more could be done to mitigate the effect of this phasing out and further incentivise businesses to make the switch to cleaner vehicles.
“This is alongside other initiatives including freight consolidation and cargo bike deliveries. We continue to work with government on national measures that could make a difference, including the extension of the plug-in van grant.”
