Mayor unveils £23m to help businesses scrap dirty vans

Small businesses will receive financial help to scrap their old vans and replace them with “cleaner” vehicles, Sadiq Khan announced today.

The Mayor unveiled plans for a £23 million scrappage scheme to help firms “regularly” working in central London ensure their vehicles meet tougher pollution rules being introduced next year.

It is not yet known how much is on offer but Mr Khan suggested a figure of £3,500 last year. A similar scheme for black taxis is worth up to £5,000.

Today’s announcement was timed ahead of an expected council tax rise this week and to raise awareness of the ultra low emission zone (Ulez), which will operate 24/7, 365 days a year, in the congestion charge zone from April 8.

The £12.50 charge will be levied on petrol vehicles that fail to meet Euro 4 emissions standards (typically those registered up to 2005), and diesels below Euro 6 standards (typically those registered up to September 2015).

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Cyclists exposed to the least air pollution on the morning commute

City Hall hopes the scrappage scheme will help “thousands” of “micro-businesses” with fewer than 10 employees. About 4,000 cars and vans a day already pay the T-charge, which the tougher Ulez will replace.

Under the scrappage scheme, firms will be encouraged to switch to the cleanest vehicles, including electric. Details of how to apply will be announced in the New Year.

Mr Khan called on the Government to match his scheme to enable it to be extended to Londoners on low incomes and charity vehicles.

“To truly get a grip on our lethal air we need to take bold action to rid our city of the most polluting vehicles,” the Mayor added. “My scrappage scheme is my next step in tackling pollution.”

Businesses had expressed concern at the lack of second-hand vans that are Ulez-compliant and the low residual value of those that fall below European emissions standards, making it difficult to fund an upgrade. Sue Terpilowski, of the Federation of Small Businesses, said: “We have been vocal with the Mayor to approach this brave new Ulez world with ‘carrot-based incentives’ to aid struggling small firms faced with changing an expensive vehicle stock.”