C-charge reward for small cars is stalled

In what critics claim is a major U-turn, City Hall confirmed that Ken Livingstone was rethinking his proposal to excuse lowpolluting vehicles from the £8-a-day fee.

Mr Livingstone said last year he wanted to give free entry to all cars which emit less than 120g of carbon dioxide per kilometre.

His announcement led to a rush of people buying smaller cars. But Green groups warned that the move would undermine the whole purpose of the scheme by leading to a sharp rise in traffic.

Mr Livingstone is said to be concerned that the growing popularity of small cars in road tax bands A and B would mean thousands of extra people driving into the zone.

Car firms seized on the proposals when they were put forward in August, with Citroen declaring that no fewer than 23 of its models would be free of any charge.

The Mayor still plans to penalise gas-guzzling 4x4s by imposing a £25 charge for band G cars which emit more than 225g/km.

Recent polls showed two thirds of Londoners support the higher charge for the most polluting cars.

But with the mayoral election in May, some observers believe that Mr Livingstone will not want to risk upsetting key voters. The 4x4 plan may even be put back until 2010 after technical difficulties.

Average traffic speed in the morning peak in Central London fell to 9.3 mph last year, lower than it was before the charge was introduced in 2003.

A spokesman for the Mayor confirmed he had yet to give the go ahead for the small car exemption.

He said Mr Livingstone will announce the next steps early in the New Year after consultation data has been analysed by Transport for London.

But Tory mayoral candidate Boris Johnson seized on the Mayor's change of tack. He told the Standard: "This was always a mad idea. I'm glad to hear this dictatorial Mayor may be about to perform a U-turn on this issue.

"The congestion charge is not working, which is why he plans to turn it into an environment tax.

"Mixed messages on this left Londoners angry and confused."

Some estimates suggest that exempting smaller cars would lead to a rise of 25,000 more vehicles a day entering the C-charge zone.

The Green Party have already released figures showing sales of smaller cars that will qualify for the 100 per cent discount have jumped by nearly a third in the first nine months of this year.

At present, the only total exemption from the charge is for electric, biofuel and hybrid cars.

Q&A

What is the Mayor proposing?

He announced in November last year that he wanted to introduce a £25 a day C-charge for Chelsea tractors and other high-polluting band G vehicles. There would be no discount for zone residents. Vehicles in bands C, D, E and F would continue to pay the £8 but small, low-polluting cars in the A and B brackets would be exempt.

How do I know which band my car is in?

Band G is for vehicles emitting more than 225g of carbon dioxide per km, which includes many 4x4s but also large cars and some prestige sports cars. Band A is for cars with a rating under 100g/km and Band B between 101g/km and 120g/km. All new cars since 2001 are given a rating, meaning heavy polluters from before 2001 would not have been covered by the £25 charge.

When was this meant to take place?

Mr Livingstone said the new charging regime would start next year but the timetable slipped to 2009 and now "technical problems" could put it back years.

What has emerged today?

The Mayor's office is now considering scrapping the exemption for low emission vehicles in bands A and B. Category B vehicles include the Honda Civic IMA, the Citroën C1 and the Toyota Prius.

Why is he considering this?

He fears the popularity of low emission cars would mean thousands extra entering the congestion zone every day.

Is there another reason?

Money. By exempting low-polluting vehicles, Mr Livingstone would miss out on vital source of revenue.