The Builders Merchants Federation (BMF) has described the High Court ruling in support of the expansion of London’s ultra-low emission zone (ULEZ) as bad news for SME builders and those supplying their materials in the outer London boroughs.

The High Court ruled against the challenge brought by the boroughs of Bexley, Bromley, Harrow and Hillingdon, and Surrey County Council. The court found that the process carried out on the proposal by the Mayor of London to expand the ULEZ, including the public consultation, is lawful.

This paves the way for restrictions on the most polluting vehicles to encompass outer London boroughs on 29 August 2023.

John Newcomb, CEO of the Builders Merchants Federation, has been calling for a 12-month delay to the Greater London ULEZ scheme to help businesses in the building materials supply industry reliant on lorries and vans, as well as their SME builder customers, prepare for the change.

The trade body has twice written to the Mayor of London, expressing concern that neighbourhoods in the expanded ULEZ could become no-go areas for the building trade and has called for a targeted commercial vehicle scrappage scheme.

BMF CEO, John Newcomb, said: “We are disappointed by the High Court’s decision, which is bad news for London’s building industry.  We will continue to press for changes to the scheme to protect jobs and the local economy. In particular, we are campaigning for a targeted commercial vehicle scrappage scheme, and a 12-month delay before the expanded scheme goes live.

“BMF members recognise the importance of air quality and as responsible employers our members take a number of steps to ensure fuel efficiency and the health and wellbeing of staff. However, we firmly believe that a 12-month delay to the start of the ULEZ expansion will allow businesses and individuals to prepare – especially in relation to the availability of compliant vehicles.”

The ULEZ was announced for central London by Mayor Boris Johnson in March 2015, to come into force in September 2020. It was eventually implemented by his successor, Sadiq Khan in April 2019, and was first expanded in October 2021 to cover the area within the North Circular and South Circular roads. The latest expansion was announced nine month ago, in November 2022

Under the scheme, a £12.50 daily charge will be levied on non-compliant vehicles across all London boroughs. The change means that anyone using a diesel vehicle registered before September 2016 or a petrol vehicle registered before January 2006 will be charged to travel almost anywhere within the M25. 

The aim of the scheme is to take the most polluting vehicles off the roads and reduce pollution in the capital, where an estimated 4,000 deaths are caused by air pollution each year.

Transport for London launched a scrappage scheme in February 2019 with a £61 million fund to help those most affected with the transition. A further £110 million was added to the scheme in January.. Eligibility criteria were widened in July 2023 to include, among others, all small businesses with up to fifty employees.

Successful applicants can receive £5,000 for scrapping a non-compliant van, and £7,500, if they replace it with an electric van.

TfL analysis showed that 51% of vans in outer London did not meet ULEZ criteria at the end of last year, when the expansion was announced. According to the BMF, this is far more than can be replaced within the current timescale, as it considers the market for second-hand commercial vehicles to not be sufficiently mature to supply the number or type of vehicles required.

More recent figures, however, show that nine out of 10 cars, and around eight out of 10 vans seen driving in the current zone on an average day are already compliant.

Reacting to the High Court decision, the Mayor of London, Sadiq Khan, said: "This landmark decision is good news as it means we can proceed with cleaning up the air in outer London on 29 August.

"The decision to expand the ULEZ was very difficult and not something I took lightly and I continue to do everything possible to address any concerns Londoners may have.

"The ULEZ has already reduced toxic nitrogen dioxide air pollution by nearly half in central London and a fifth in inner London. The coming expansion will see five million more Londoners being able to breathe cleaner air.

"I've been listening to Londoners throughout the ULEZ rollout, which is why from next week I am expanding the scrappage scheme to nearly a million families who receive child benefit and all small businesses with up to fifty employees. I will continue to look at new ideas to support Londoners.

“Nine out of 10 cars seen driving in outer London on an average day are already compliant so won't pay a penny - yet will still see the benefits of cleaner air. Air pollution is an urgent public health crisis - our children are growing up with stunted lungs and it is linked to a host of serious conditions, from heart disease to cancer and dementia.

"This unambiguous decision today in the High Court allows us to press on with the difficult but vital task of cleaning up London's air and tackling the climate crisis."