We’re asking FMB members in London to have their say on Transport for London’s (TfL) latest proposals to change the congestion charge. These changes could mean higher costs for your business, so it’s important we speak up. The deadline to respond is Sunday 4 August. 

 
 

This month the FMB London Board met with Transport for London (TfL) to discuss changes to the congestion charge. It was a productive session where we explored how these costs and other charges from TfL make it harder to trade. We particularly focused on costs being passed on to consumers and how it impacts the Government’s retrofit and housing ambitions. 

What’s being proposed? 

  • Increasing the congestion charge from £15 to £18 per day, starting in January 2026. 
  • A new discount for electric vehicles (EVs), replacing the current 100% exemption. From 2026, EVs on Auto Pay would get a 25% discount (£13.50 a day), with electric vans and HGVs getting a 50% discount. 
  • Changes to the residents' discount. From March 2027, new applicants will only get the 90% discount if they own a fully electric vehicle. Existing residents who already receive the discount won’t be affected. 

You can read more on the official proposals on the TfL consultation page

What’s the difference between the CCZ and ULEZ? 

If you work in London, you’re probably dealing with both of these – but they’re not the same. 

  • The Congestion Charge Zone (CCZ) covers central London and applies a daily charge to most vehicles during peak hours. 
  • The Ultra Low Emission Zone (ULEZ) operates 24/7 and applies to a much wider area. You’re charged if your vehicle doesn’t meet emissions standards. 

You can be charged both if you enter the CCZ in a non-compliant vehicle. And that’s on top of upcoming tolls for the Blackwall and Silvertown tunnels, expected to start at £4 in peak times. 

Why it matters to you 

If these changes go ahead, many of us could be paying more to work in the city. Builders already face rising costs from ULEZ, tunnel tolls and fuel. We know that charging trades to drive into London doesn’t just hit us – it risks putting up the cost of building and retrofitting homes too. 

And with more restrictions planned for residents’ discounts, even parking up locally could become harder if you don’t own an EV. 

What we’re doing – and how you can help 

We’re putting together an official FMB response to TfL’s consultation – and we want to include your views. If you’re working in and around central London, let us know how these changes would affect you. It only takes two minutes: 

 

 

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Authors

Tom Peardon

Tom Peardon

London Director, Federation of Master Builders

Tom represents the London membership of the FMB championing their interests to key industry stakeholders in London and providing a support to the membership.

Tom has eighteen years of experience working commercially in construction media including fifteen years on the CIOB publications Construction Management and BIMplus. Tom has also worked on the Architects’ Journal, the Architectural Review and the Association for Project Safety publication the Project Safety Journal.

Tom holds a degree in English and Philosophy from the University of Roehampton.