Fury as congestion charge set to soar by 20% to £18

Small businesses have slammed Transport for 's proposal to hike the Congestion Charge to £18, branding the increase "swingeing" at a time when many are already fighting to stay afloat. The Federation of Small Businesses (FSB) warned the move would heap further pressure on firms already battling tight margins and rising costs. The charge, which currently stands at £15, is set to rise by 20% from January 2026 under the plans unveiled by TfL, led by London Mayor

Michael Lloyd, the FSB's infrastructure champion, told the BBC: "Many businesses, particularly in sectors where margins are so tight, will not be able to absorb these extra costs. Businesses will look to charge customers in the charging zone a premium for their business services, which will heighten inflationary pressures further. The mayor should immediately reconsider the excessive increase and make it more palatable to struggling small firms. We urge the mayor to maintain a zero charge for small van users."

TfL defended the proposal, saying it was necessary to manage congestion in the capital.

A spokesman said: "We're proposing changes to the central London Congestion Charging scheme.

"The Congestion Charging scheme was introduced in February 2003. Since its introduction the primary objective of the scheme has been to manage traffic and congestion in central London by imposing a charge during the busiest times of day.

"Our proposals include a change in the charge level from £15 to £18, a new discount for electric vehicles and a change to the Residents' Discount for new applicants. If introduced, our proposals would begin to come into effect from January 2026."

Seb Dance, Deputy Mayor for Transport, said: "Keeping London moving by reducing congestion is vital for our city and for our economy.

"The congestion charge has been a huge success since its introduction, but we must ensure it is fit for purpose.

"We encourage everyone to have their say and respond to the public consultation."As part of the package, electric vehicle drivers-currently exempt from the charge-would begin paying a discounted rate of £13.50 per day, provided they are registered for Auto Pay. Vans and HGVs would receive a 50% discount, paying £9 per day.

TfL has also proposed abolishing the 90% residents' discount for new petrol and diesel car owners from March 2027. Existing recipients would retain the benefit.

The increase, the first since 2020, is part of a wider plan to update the system, with TfL also proposing that the Congestion Charge be raised annually in line with public transport fare increases, typically pegged to inflation.

City Hall claimed without the changes, 2,200 more vehicles could enter the zone each weekday, worsening congestion in what is already the most traffic-clogged city in Europe.

However, the FSB remains unconvinced and is urging businesses and members of the public to respond to the consultation before the deadline.

TfL said: "Use the following buttons to find out more about what is proposed, ask questions, give feedback, and find out about other ways to get in touch and have your say.

"You have until Monday 4 August 2025 to give us your feedback."