Mayor answers to London

Lost WEZ income

Question number	3583/2010
Meeting date	17/11/2010

Question by Jenny Jones

Can you tell me (a) the gross lost income from cancelling the congestion charge western extension zone, (b) the net lost income when offsetting the money raised by increased daily rates in the central zone and the introduction of Auto Pay, (c) the amount of extra revenue anticipated from residents of the former western extension zone and (d) the amount of extra revenue anticipated from penalty notices having to be paid by residents of the former western extension zone?

Answer by Boris Johnson (1st Term)

In answer to the first two parts of your question, I note that TfL has estimated that net income from the Congestion Charging scheme will be reduced by £55m per year as a result of the removal of the WEZ. This estimate takes into account the impact of other policy changes, such as the increase in the level of the charge and introduction of CC Autopay. In September 2008, TfL estimated the net loss of removing the WEZ alone as £70m per year – this figure excluded the impact of policy changes as well as further contractual savings that the more recent figure includes.

Regarding the second two points, the method TfL used to arrive at this estimate was to adjust pre-WEZ financial figures in light of more recent observed changes in traffic volumes, other policy changes, and contractual changes. This ensures an estimate on the likely overall financial impact, but means that the contribution that former WEZ residents are likely to make to post-WEZ revenue cannot be itemised. However, very broadly, it is estimated that former Western Extension residents will contribute some £4-7m per year to ongoing scheme revenues. Former WEZ residents will be able to register for the CC Auto Pay service, which will ensure they will not receive Penalty Charge Notices.