July 18, 2024
Abby Nuttall
With the UK’s aim to reduce air pollution across the nation, many local authorities have implemented low-emission zones (LEZ) in a bid to tackle the use of older, more polluting vehicles. There are 15 low-emission zones across the UK, and four zones under consideration.
With that in mind, at Wessex Fleet, we’ve conducted an extensive investigation into the earnings from clean air zones (CAZ), ultra-low emission zones (ULEZ) and LEZ by submitting freedom of information requests to various councils across the UK.
We’ve uncovered some staggering figures by calculating the average earnings from LEZ charges alongside the total fines.
To date, we can reveal that the UK has raked in an impressive £941 million from low-emission zones. Despite the impact LEZ has on drivers, Wessex Fleet can reveal only 7% of Brits would consider switching to an EV because of ultra-low emission zones.
The financial impact of these zones is substantial. Let’s explore how these earnings break down across different councils and what it means for drivers and residents alike.
The Councils That Have Made the Most and Least Money From Low-Emission Zones (LEZ)
|
Rank | Council | Months of operation | Average income per month (LEZ & PCN) |
1 | London | 61 | £12,547,281 |
2 | Birmingham | 34 | £3,684,430 |
3 | Bristol | 12 | £2,200,000 |
4 | Sheffield | 13 | £395,172 |
5 | Bath | 35 | £349,137 |
6 | Newcastle | 13 | £239,341 |
7 | Glasgow* | 9 | £96,417 |
8 | Oxford | 25 | £92,204 |
9 | Portsmouth | 25 | £39,982 |
Average income is based on the length of time each LEZ has been open. Penalty charge notice (PCN), in this instance, is a fine drivers receive for not paying the daily charge to enter LEZ.
*Glasgow’s revenue from LEZ is solely generated from penalty charge notices as you cannot pay to enter Glasgow’s LEZ.
London Earns £12.5 Million a Month From ULEZ
London stands out as the city that has collected the most substantial sums from ULEZ charges and Penalty Charge Notices (PCNs). Over a span of 61 months, London has amassed an impressive average of £12,547,280 per month. Since April 2019, London has generated a staggering £765 million from LEZ. In April 2019, the scheme started as the congestion charging zone, a 21sq km area from Kings Cross to Vauxhall. In 2021, the zone was expanded up to, but not including, the North and South circular roads. Then in August, ultra-low emission zones (ULEZ) was implemented across all London boroughs.
Interestingly, a member of the general counsel of transport for London, states that 95% of vehicles seen in ULEZ on an average day are ULEZ compliant. They claim the initiative is not about making money, and as more people switch to greener vehicles they will see smaller net revenues. Revenue raised by ULEZ is invested in improving London’s transport network, including the brand-new Superloop bus network.
Birmingham Has Earned the Second Most From CAZ
Birmingham emerges as the city earning the second most from clean air zones (CAZ) and penalty charges through unpaid CAZ fees. Since the implementation of its CAZ in June 2021, Birmingham has amassed a total of £125 million. On a monthly basis, the city earns an average of £3.6 million.
The city council says all money made from CAZ is invested back into projects that promote greener travel and cleaner air.
Examining the councils that have amassed the highest sums from Clean Air Zones and penalty charges, Bristol has generated the third most from CAZ, with a notable average collection of £2,200,000. Following Bristol, Sheffield secures the fourth position, accumulating an average of £395,172.
Bath trails closely behind in fifth place, with an average collection amounting to £349,137, while Newcastle rounds out the top six with an average of £239,341.
These figures underscore the financial implications for councils implementing measures aimed at reducing emissions and improving air quality within urban environments.
In 9 Months of LEZ Being in Action, Glasgow Earns £96,417 a Month
On the other end of the spectrum, the cities that have garnered the least revenue from clean air zones and penalty charges include Glasgow, Oxford and Portsmouth. Surprisingly, Glasgow’s LEZ zone has only been around for 9 months, yet it’s made a whopping £867,755 so far. Averaged across the months, that’s £96,417 per month.
The council that’s made the least is Portsmouth, collecting an average of £39,982. Interestingly, their clean air zone is amongst the longest standing being instilled in 2021. But, without even taking the monthly average into account, Portsmouth has made the second lowest (Glasgow 1st) amount from CAZ. The council has earned a total of £999,552 since CAZ was initiated, the low figure could be because Portsmouth only charges non-compliant HGVs, taxis and private hire cars. Still, Portsmouth is only home to 5% of non-euro 4 petrol, and 17% of non-euro 6 diesel vehicles. Vehicles need to meet this standard to be compliant.
The Councils Earning the Most From PCNs
|
Rank | Council | % of Income from PCNs | PCNs Issued (Monthly Average) | PCN Income (Monthly Average) |
1 | Oxford | 69% | 1,016 | £63,735.60 |
2 | Birmingham | 67% | 55,727 | £2,463,453.76 |
3 | Bath | 62% | 2,983 | £217,458.86 |
4 | Bristol | 59% | 23,804 | £1,300,000.00 |
5 | Newcastle | 54% | 2,349 | £130,269.24 |
6 | Portsmouth | 47% | 327 | £18,695.28 |
7 | London | 32% | 97,706 | £3,963,338.38 |
Glasgow is excluded due to their sole revenue being from PCNs. Sheffield did not provide income from PCNs so this was excluded.
69% of Oxford Council’s CAZ Earnings Come From PCNs
When vehicles do not pay their daily charge for entering a CAZ, they will receive a penalty charge notice (PCN), which is usually a higher fee than the CAZ charge. In Oxford, a significant portion of Clear Air Zone earnings is derived from Penalty Charge Notices (PCNs). Specifically, 69% of the council’s CAZ revenue comes from these penalties. On a monthly basis, Oxford earns an average of £92,204 from its CAZ initiatives, with £63,735 generated from PCNs alone. Surprisingly, Oxford has issued some of the lowest PCNs per month, at 1,015. On average, Oxford earns £62.79 per fine.
Since the CAZ was introduced, Oxford has collected a total of £1,593,390 from PCNs.
Birmingham LEZ Earnings are Made Up of 66% PCNs
Birmingham issues the second most amount of penalty charge notices per month with an average of 55,726. The income this has generated is a staggering £2.4 million a month, which makes up 66% of Birmingham council’s CAZ income.
Following Birmingham, is Bath with 62% of their CAZ revenue generated from penalty charge notices. Interestingly, Bath issues the fourth least amount of PCNs per month with an average of 2,982. Their average PCN income is £217,458. That works out at a hefty £72.90 per fine.
Over 11 Million Cars in the UK Could Be Affected by LEZ
Four other local authorities are considering implementing LEZ, which could mean even more of the over 11 million non-compliant cars in the UK could be affected. That’s due to them being registered before 2015 for diesel, or before 2006 for petrol which often makes them not Euro 6 (diesel) or Euro 4 (petrol).
However, many cities that were considering clean air zones are now scrapping plans. For example, Leeds received almost £7 million in government funding to introduce CAZ, however they found most of the buses, HGVs and taxis, that drive through the city centre were already compliant. Nottingham also had plans for CAZ, but after modelling revealed it wasn’t necessary in order to reduce air pollution they scrapped the scheme. Instead, they’ve retrofitted buses and increased the number of zero-emission taxis.
Concerned about your company fleet being low-emission zone compliant? We have a range of business cars, vans, and even buses to lease that are low-emission zone-compliant. We can even support you with fleet management. Request a callback today to keep your business moving.
Methodology
We at Wessex Fleet submitted freedom of information requests to 13 local authorities with low-emission zones that charge, four local authorities refused the request. The income from daily charges and penalty charge notices was totalled for each council. As each low-emission zone has been around for a different amount of time, we then calculated the average monthly income from both revenue streams for a fairer representation.
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