Call for inquiry into reinstating private hire vehicle congestion charge exemption in London
- Perry Richardson
- 4 minutes ago
- 2 min read
The Licensed Private Hire Car Association (LPHCA) has renewed calls for a full inquiry into the removal of Private Hire Vehicle (PHV) exemptions from the London Congestion Charge, saying the policy has failed to reduce PHV presence in the central zone and is unfairly impacting vulnerable passengers.
The Congestion Charge was introduced in 2003 by then-Mayor Ken Livingstone to tackle traffic volume in Central London. Both London taxis and PHVs were originally exempt, a move seen at the time as recognition of the sector’s role in reducing car ownership and cutting the number of private vehicle journeys.
However, in April 2019, Transport for London (TfL) removed the PHV exemption for most private hire drivers. According to the LPHCA, this change has not had the intended effect and may have had unintended consequences.
The trade body claims that the rise in PHV traffic linked to app-based platforms has not been curbed by the charge. Instead, they argue it has encouraged some drivers to remain in the Congestion Charging Zone (CCZ) longer after paying the daily fee, as there is now no financial reason to leave quickly once the charge is incurred.
A LPHCA spokesperson said: “The Congestion Charge was brought in to reduce congestion by former Mayor Ken Livingstone. Wisely, he allowed both London Taxis and PHVs to be exempt as both modes reduce car ownership and the number of private vehicle journeys in London.
“The arrival of app-based platform operators who, in some cases, refer to themselves as ride-hailers, and whose drivers allegedly often come into central London without work, has caused more PHV activity in the Congestion Charging Zone in our view. This is because those entering without a job, once the fee is applicable, have no reason not to stay longer.”
The association claims that entering the CCZ without a job or a pre-booked fare used to be against regulations for PHVs, but that poor enforcement meant the practice went unchecked. According to the LPHCA, the result is that PHV numbers in Central London have not reduced, and licensed taxi numbers have declined.
“Wrongly, London PHVs’ exemption was removed but, as a consequence, there has been little or no change in the number of PHVs in Central London who, we allege, often now just pay a fee and stay far longer,” said the spokesperson. “Not only has this, in our view, reduced the number of licensed taxis but taking away the exemption has been counterproductive to the primary objective of reducing congestion.”
The LPHCA is also critical of the impact on passengers who rely on PHVs for essential journeys, including those who are elderly, frail, or disabled. The planned increase in the Congestion Charge to £18 per day would, they argue, further burden those without access to private transport.
They are now calling for a formal inquiry into the matter, specifically looking at the removal of the PHV exemption and the potential reinstatement of the original arrangements.
