Skip to content
Monday 17 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,720.30
-0.28%
DAX
26,338.61
-0.38%
CAC 40
8,579.60
-0.66%
STOXX 50
6,530.45
-0.14%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Thursday 01 June 2023 10:33 am  |  Updated:  Thursday 01 June 2023 11:15 am

ULEZ: Khan expands vehicle scrappage grants to help London businesses cope

By: Guy Taylor

Transport Reporter

Add as a preferred source on Google
Of the 16,207 approved applications to scrap a petrol or diesel van between January 2023 and May 2024, only 372 were replaced with an EV.
Mayor Sadiq Khan launched the ULEZ scrappage scheme in 2023 to help Londoners and businesses prepare financially for the zone's controversial expansion across Greater London.

Sadiq Khan will extend grants to small businesses so they can replace vehicles which don’t meet emissions standards, ahead of August’s expansion of the controversial ULEZ scheme.

The London mayor intends to expand the £110m ‘scrappage scheme’ from the end of July, with “tens of thousands more Londoners” to benefit as the Ultra Low Emissions Zone (ULEZ) is rolled out in August.

The scrappage scheme currently offers grants for certain groups, such as those on low income, to scrap or retrofit vehicles that do not meet ULEZ emissions standards. 

Under the new plans, this would extend to a range of small businesses and all London families receiving child benefit.

This comes after a swathe of criticism from within his own party and from leading London Tories criticising ULUZ for making driving in the capital more expensive.

Sadiq Khan said: “I completely understand the concerns of people who may not have a compliant vehicle and are worried about how they’ll make the transition.”

“We already have the biggest-ever scrappage scheme in place to support Londoners on low incomes, London based micro-businesses and charities and disabled Londoners. But I’ve listened to families and small businesses in outer London who want more support and I’m pleased to be able to announce today a major expansion to the scheme run by TfL to ensure we can help them.”

The announcements comes after a number of Labour MPs raised concerns over Khan’s plans to extend the ULEZ zone to all of London’s boroughs in August and called for a review of the scrappage scheme.

Read more

Miliband refused to meet motor trade body to discuss zero emissions mandate

Ed Miliband speaking at a podium during a press conference, addressing energy policy reforms and climate change initiatives.

Ellie Reeves and Dr Rosena Allin-Khan, Labour MPs for for Lewisham West and Penge and Tooting, as well as Abena Oppong-Asare and Barry Gardiner, MPs for Erith and Thamesmead and Brent North have all written public letters to the mayor.

They were joined by Philip Glanville, the Labour Mayor of Hackney and Grace Williams, the Labour Leader of Waltham Forest Council have also called for a ULEZ rethink.

Those who will benefit under the reformed scrappage scheme include all Londoners receiving child benefit, businesses registered in London with fewer than 50 employees, and charities, who can scrap or retrofit a maximum of three vans or minibuses, as opposed to just one.

It will also allow for the introduction of a ‘grace period’ for sole traders, micro-businesses, small businesses and registered charities who have had deliveries of compliant vehicles delayed past August.

Richard Burge, Chief Executive of the London Chamber of Commerce and Industry, said: “It is a positive step forward that a significant number of small businesses will now be included in the ULEZ vehicle scrappage scheme. “

“The London Chamber of Commerce and Industry support the call for action to improve air quality and save lives. We are looking forward to meeting the Deputy Mayor for Transport Seb Dance to discuss how to ensure SMEs can benefit and the support reaches those who need it.”  

Five Tory-led councils have also launched a legal challenge against the expansion, with the High Court ruling in April that the local authorities could proceed on two grounds.

Tory mayoral hopefuls including Samuel Kasumu have also welcomed the changes to the scrappage scheme, but reiterated overall opposition to the controversial ULEZ policy.

Read more

Britain should back the North Sea if it wants energy security and net zero

Oil prices have risen as Israel and Iran tensions escalated.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Transport & Infrastructure

Related Topics

  • Sadiq Khan
  • ULEZ

Trending Articles

  • Nanochon Receives Regulatory Approval from Panamá’s Ministry of Health to Initiate First-in-Human Clinical Study of Chondrograft™

  • Analysis: What would Todd Boehly and Mark Walter stake sales mean for Chelsea?

  • We take a food and drink Odyssey through the Square Mile

  • Paramount-Warner Bros deal faces ‘sufficient competition’, says CMA

  • Watchdog takes aim at lawyers blaming juniors for AI blunders

More from Morning Wire

  • Miliband refused to meet motor trade body to discuss zero emissions mandate

    Transport & Infrastructure
    Ed Miliband speaking at a podium during a press conference, addressing energy policy reforms and climate change initiatives.
  • Britain should back the North Sea if it wants energy security and net zero

    Opinion
    Oil prices have risen as Israel and Iran tensions escalated.
  • Government to inject millions into electric vehicle firms despite mandate backlash

    Politics
    Car bodies on an assembly line in a UK car plant, showcasing EV manufacturing process
  • Britain knows how to seed a scaleup. But can it back one all the way?

    Partner
    Panelists discuss Scaleup Champions: Capital & Collaboration at SCALEEXPOSUMMIT, with sponsor logos visible.
  • Vehicle production drops in first half of year

    Transport & Infrastructure
    Car bodies on an assembly line in a UK car plant, showcasing EV manufacturing process
  • AI reduces founders’ need for capital, says Revolut Business

    Tech
    Canada skyline featuring iconic skyscrapers and modern architecture against a clear blue sky
  • ReNew Reports 25.6% Reduction in Scope 1 & 2 Emissions and 24.7 Billion Units of Clean Power Generated in FY 2025-26

    Business Wire
  • Reeves: Burnham will face ‘shocks and challenges’ as Prime Minister

    Politics
    Rachel Reeves delivering a speech at a press event, wearing a navy blazer and standing in front of a backdrop with logos.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook