TfL puts £3.50 'boundary tax' proposal for journeys into London to government

Motorists on the A13 between Wennington and Rainham

The M25 - Where London unofficially begins and ends - Credit: Archant

Sadiq Khan’s proposal to charge motorists £3.50 to enter the capital is a step closer this week after the idea was submitted to the government. 

Transport for London has listed the so-called boundary tax, which could also poll higher polluting vehicles £5.50, as one of the money raising options in its spending review. 

The levy, proposed by the mayor of London last December, would be enforced from 6am to 7pm from October 2023. It could bring in up to £500million a year for TfL, which has been badly hit during the pandemic. 

But it has been criticised by Transport Secretary Grant Shapps for penalising non-Londoners to fund services used by residents in the capital. 

The spending review submission states: “This £1-1.5bn range includes all the contributions we can make through our existing operational efficiencies, new plans for capital efficiencies and the delivery of at least £500m of recurring income, either from vehicle excise duty or another source identified by the Mayor, on which separate work is ongoing.

“This long-term approach is common with other transport authorities, such as Network Rail and National Highways, and makes economic sense.”

The Department for Transport said it could not comment directly at this stage. 

However, a government spokesperson said: “We have repeatedly shown our commitment to supporting London's transport network through the pandemic, providing more than £4bn in emergency funding to TfL”