page_title: London congestion charge
section_title: Income and costs
hierarchical_section_title: London congestion charge / Income and costs
caption_attribution_description: English: Entrance to the London Congestion Charge zone. Shown the CCTV used to control vehicles entering the zone's boundary.
context_page_description: The London congestion charge is a fee charged on most cars and motor vehicles being driven within the Congestion Charge Zone in Central London between 7:00 am to 10:00 pm seven days a week. The charge was first introduced on 17 February 2003. As of 2017, the London charge zone is still one of the largest congestion charge zones in the world, despite the removal of the Western Extension which operated between February 2007 and January 2011. The charge helps to not only reduce high traffic flow in the city streets, but also reduces air and noise pollution in the central London area and raises investment funds for London's transport system.
  The standard charge is £15, every day from 7:00 am to 10:00 pm, for each non-exempt vehicle driven within the zone, with a penalty of between £65 and £195 levied for non-payment. The Congestion Charge does not operate on Christmas Day. In July 2013 the Ultra Low Emission Discount introduced more stringent emission standards that limit the free access to the congestion charge zone to all-electric cars, some plug-in hybrids, and any vehicle that emits 75 g/km or less of CO₂ and meets the Euro 5 standards for air quality.
context_section_description: TfL's annual report for 2017–18 shows that revenues from the congestion charge were £229.8m over the financial year, representing 4.3% of TfL's annual revenues. A quarter of this was spent on the cost of running the toll system, at £57.7 million. Once other charges were deducted, the congestion charge brought in an annual operating net income of £155.9m for TfL. This income compares with TfL's total revenue that year from bus and tube fares of £4.319 billion.
  The initial operating revenues from the congestion charge did not reach the levels that were originally expected. Within six months of the start of the scheme, the reduction in traffic had been such that TfL were predicting a £65 million revenue shortfall.
  By law, all surpluses raised must be reinvested into London's transport infrastructure; at the start of the scheme it was anticipated that this would be around £200 million. According to a report issued in February 2007, the initial costs of setting up the scheme were £161.7 million, with an annual operating cost of about £115m anticipated.
  Total revenues over the first three and a half years had been £677.4 million, with TfL reporting a surplus over operating costs of £189.7 million. The Bow Group, compiled from TfL data estimated that by 2007 the project had only returned a modest £10 million profit.
  Although Parliament has limited the amount that authorities can borrow, for some time it had been speculated that the regular income obtained from the congestion charge and other revenues could be used to securitise a bond issue that finances other transport projects across London. TfL issued their first bond for £200 million in 2005, to be repaid at 5% interest over 30 years. TfL plans to borrow £3.1 billion more to fund a 5-year transport programme across London, including works on London Underground and road safety schemes.
  From the scheme's introduction in 2003 until December 2013, gross revenue reached about £2.6 billion, of which, over £1.2 billion (46%) has been invested in transport, including £960 million on improvements to the bus network; £102 million on roads and bridges; £70 million on road safety; £51 million on local transport/borough plans; and £36 million on sustainable transport and the environment.
caption: CCTV cameras used to monitor vehicles entering the congestion charge zone (CCZ) boundary.
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