Labour MP Warns ULEZ Expansion May Damage Small Businesses

Labour MP Warns ULEZ Expansion May Damage Small Businesses
Labour Party leader Sir Keir Starmer speaking in east London, following the Equality and Human Rights Commission's announcement that it has concluded its monitoring of the Labour Party, on Feb. 15, 2023. (Stefan Rousseau/PA Media)
Joseph Robertson
8/24/2023
Updated:
8/24/2023
0:00

A Labour MP has warned that Sadiq Khan’s proposed expansion of the Ultra Low Emission Zone (ULEZ) in London may damage small businesses, as calls are made to Labour leader, Sir Keir Starmer, to halt the process.

Labour Party MP Siobhain McDonagh has raised concerns about the potential negative impact of the expansion to the entire city of London. McDonagh, who represents Mitcham and Morden, expressed worries that many firms would suffer due to the “regressive tax” when the ULEZ is extended citywide.

She emphasised that a significant portion of her constituents cannot afford to replace their vehicles with more eco-friendly models, potentially causing financial strain on both small businesses and workers.

The warning comes as efforts by No. 10 to halt the expansion appear to have been thwarted, after legal counsel cautioned against the potential move, citing possible court rejection. Cabinet ministers had been contemplating an attempt to legally counter Mr. Khan’s proposals.

The ULEZ scheme, set to be implemented on August 29, will impose a £12.50 daily charge on the most polluting vehicles across Greater London. Despite growing opposition from MPs in the Commons, London Mayor Sadiq Khan remains committed to the expansion.

Mr. Khan has introduced a “scrappage“ scheme offering financial incentives of £2,000 to encourage individuals to upgrade their old cars, but critics argue that this support falls short.

Speaking to The Telegraph, Ms. McDonagh cautioned that the extension of Ulez would affect those who are already economically vulnerable.

She pointed out that the impact of the scheme could be particularly felt by small businesses and workers whose earnings might not cover the additional fee. McDonagh stated that Ulez is disproportionately affecting “people who have the least.”

“I think that small businesses may be destroyed when people simply can’t afford to replace their vehicles,” she said, adding that the “whole ecosystem of outer London is going to be placed under pressure.”

The Labour leader, Sir Keir Starmer, has expressed concerns about the financial implications of the expansion but has not explicitly called for its postponement or cancellation.

Following his party’s defeat in the recent Uxbridge by-election, which was seen as a reflection of public sentiment on the Ulez expansion, Starmer acknowledged the influence of the scheme on the election outcome and urged the Mayor to reflect on it.

Speaking to The Telegraph on August 22, former leader of the Conservative Party, Sir Ian Duncan Smith, said; “The Government should intervene and demand that before this can go ahead, there must be overriding evidence that this would make a major and significant difference to the environment.

“It’s a fundraiser, it’s nothing to do with the environment at all. It’s just a very simple attempt to get more money to be able to pay for the damage he’s inflicted on the capital since he took over.

“I’m up for anything the Government can do to stop this nightmare taking place.”

Mr. Khan, on the other hand, remains steadfast in his commitment to the ULEZ expansion, despite some reservations. While acknowledging that concerns exist, he stressed the urgency of addressing the climate crisis and stated that delaying action is not an option.

Speaking to LBC today, Mr. Khan sparked a backlash on social media after labelling opposers of the ULEZ scheme as “conspiracy theorists.”

He said: “Yeah, listen, I didn’t expect for there to be people linking my policies to clean up the air with conspiracy theories. I did expect people to have genuine concerns and I’ve been listening to those genuine concerns.

“I didn’t expect this to be weaponised by those who… didn’t believe COVID was real, believed in conspiracy theories and so forth.”

He added that he “always” listened to Londoners, saying, “I'll always try and address genuine concerns Londoners have.”

This comes following recent revelations shed light on communication between the deputy mayor and top scientists, in an apparent attempt to ’squash scientific dissent‘.
Joseph Robertson is a UK-based journalist covering a wide range of national stories, with a particular interest in coverage of political affairs, net zero and free speech issues.
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