Outer London Congestion Charge

Sam Tarry Excerpts

Tuesday 23rd March 2021 Westminster Hall

[Sam Tarry (Ilford South) (Lab)]

It is a pleasure to serve under your chairmanship for the first time, Ms Rees, and I thank the hon. Member for Dartford (Gareth Johnson) for securing this timely debate. I also thank my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury), who exposed the real situation and raised genuine concerns about air cleanliness and air quality, and my neighbour and hon. Friend the Member for Ilford North (Wes Streeting), who laid bare the facts of what is really a Tory transport delusion.

I note that the hon. Member for Hendon (Dr Offord) said that London’s electoral system is rigged in favour of Labour. The two terms served there by our current Prime Minister might point in the opposite direction. Indeed, TfL’s financial woes began under that previous Mayor of London. Perhaps the issue is that the current Tory candidate is about to get crushed in the upcoming election.

I would like to thank the hon. Member for Gravesham (Adam Holloway) who showed his fantastic choice of tie and Windsor knot skills. Unfortunately, he shed very little light on the facts of the debate. The hon. Member for Reigate (Crispin Blunt), as a military man, will surely see this debacle from the Department for Transport and the Government for what it is: a political improvised explosive device designed to blow up the Mayor of London.

What we have heard today is nothing more than a highly politicised attack on the Mayor of London, just weeks before the mayoral election. Far from being wasteful, the Mayor has been held over a barrel by the Government and forced to consider any and every option left available in order to keep afloat one of the world’s greatest transport networks. The fact that it has reached this point is frankly shameful.

I hope we will hear from the Minister whether the Government will finally give a long-term funding commitment to TfL, or keep stringing it along with piecemeal funding that serves only to kick the can down the road until a meaningful agreement is reached. Perhaps that is why so many Conservative MPs are here today. Perhaps they, too, would like to see the Government do the right thing, rather than simply using the Government’s chronic underfunding of TfL in the middle of a pandemic as a stick to beat the London Mayor with.

I will address some of the fundamentally misleading statements that we have heard today. First, the proposal for an outer London congestion charge is far from set in stone. TfL is currently in the process of carrying out an early feasibility study; no decisions have yet been taken to implement the charge. If a decision were taken to pursue the idea, clearly an extensive public consultation and detailed economic and environmental impact assessments would have to be undertaken.

[Gareth Johnson]

If the London Mayor were to implement this outer London congestion charge, would the Labour party support it?

[Sam Tarry]

It is clear at the moment that the key issue we want to focus on is a long-term funding deal for TfL, which would mean such options would not need to be considered. That is perhaps something on which we could all agree. I again point out that there would be no need whatsoever for a Greater London boundary charge if the Government supported the calls from the Mayor of London to allow the capital to keep its share of the vehicle excise duty, which is roughly £500 million a year.

If we gave TfL the level of revenue in capital funding it had for the first 20 years of its existence, that would be a game changer. Let us not forget that it is the current Prime Minister, the previous Mayor of London, who negotiated away the direct operating subsidy in 2015. That ensured that the brutal austerity measures of the then Chancellor George Osborne, inflicted on councils and the rest of the public sector from 2010, were also applied to Transport for London, literally robbing our country’s transport Crown jewels in front of the eyes of Londoners.

Let us focus on vehicle excise duty for a moment. Every year, Londoners pay £500 million in VED, money which is spent almost exclusively on roads outside of London. We, therefore, have the nonsensical situation whereby road maintenance in London is in effect subsidised by people using public transport. To put that another way, tube users pay for car drivers. I would like to know if the Minister agrees that City Hall should be allowed to keep the VED.

[Gareth Bacon]

Will the hon. Gentleman concede that people do not just use one mode of transport? Car drivers also walk, cycle and use public transport, so they pay into the public transport system. The idea that car drivers are being subsidised by public transport users is further undermined by more than a £1 billion of subsidy that Transport for London puts into the bus system and the other concessionary fares. Would he concede that that statement, which is often used and comes directly from City Hall, is misleading and wrong?

[Sam Tarry]

I think of lot of Londoners will disagree. Their money is spent elsewhere in the country. As I have said in the Chamber before, it would be good to see an agenda not of levelling down London, but genuinely levelling up the rest of the country’s transport networks, as needs to happen. As I was saying, I would like to hear whether the Minister agrees that City Hall should be allowed to keep that VED, which is paid by Londoners, so that it can be spent on their transport system. That seems only fair, given that London contributes over £40 billion net to Treasury coffers every single year.

Does the Minister agree that allowing London to keep its share of VED, so that TfL can invest in London’s roads and public transport services, is actually a very reasonable request, not least given the fact that the Conservative party at City Hall has supported that very position in a cross-party letter? Indeed, the hon. Member for Orpington (Gareth Bacon is on the record as having previously supported that position.

[Gareth Bacon]

The letter to which the hon. Gentleman refers was written before this proposal was put in place, and this is not an either/or question. The Mayor of London is throwing up smoke and mirrors by saying that either vehicle excise duty is devolved or there is an outer-London charge. That is not the case at all. As chairman of the cross-party budget committee, I was obliged to sign that letter because the majority of the committee said that they wanted vehicle excise duty to be devolved, but that was before the Mayor of London called for this, so the two things are not related at all.

--- Later in debate ---

[Sam Tarry]

The point still stands that vehicle excise duty could be an answer to TfL’s financial woes; or, indeed, the Government could reach into their pockets and give our country support, bearing in mind what we have said about that £40 billion. When London does well, the entire country does well. If we can boost our economy and come out of this awful pandemic, London succeeding will also help millions of other people across the country to succeed as well.

As I have already made clear, no decisions have been taken on this scheme. In fact, no scheme has even been designed. Let us be clear: no scheme whatsoever has been designed and no decisions have been taken on the charge level, exemptions or hours of operation. As we all know, with the election just weeks away, Conservative Members here today are doing their best to whip up this issue and spread fake news. Londoners—in fact, their own constituents—deserve far better.

Let us talk about the facts. Every weekday, 1.3 million vehicle trips are made from outside London to the capital, burdening local communities with traffic and emissions. Of those 1.3 million vehicle trips, around 1 million are made to outer London. TfL informs me that prior to the pandemic, car journeys made by residents within outer London had been in decline in recent years, whereas car journeys to outer London from outside the boundary—in other words, by non-London residents—had been increasing over the same period.

What this all comes down to is the more fundamental choices about what has to be done. Do we all want a well-funded public transport system, with a diverse range of income streams so that it is not entirely reliant on fares, or do we think that it is acceptable to cut services, because otherwise that is where we are headed? Cutting services at a time when we are trying to incentivise people back to using public transport, as they return to work after having their vaccination and the economy begins to move again, would be completely and utterly counterproductive.

When it is safe to do so, we want people to enjoy everything that our capital has to offer. However, if they think that they will be packed in like sardines and that passengers will be rammed in—perhaps from Newbury Park in the constituency of my hon. Friend the Member for Ilford North, as I have experienced many times—they will not want to get on tubes or buses. They did not like that pre-pandemic and they certainly will not like it now.

I have also heard the argument that if fewer people are travelling because they are working from home, we should put up fares. That is clearly the preference of the Transport Secretary, who forced the Mayor of London to increase fares this year in order to access emergency financial support. The rest of us know, however, that if we price people off the public transport network, we run the risk of forcing them to use cars.

I also find it interesting to hear Tory MPs express outrage today, given what their own Transport Secretary said just last September, in a letter he sent to the Mayor of London:

“Given the significant rise in congestion in inner London, we also propose the extension of the central London congestion charging zone to cover the same area as the Ultra Low Emission Zone…and at the same time, October 2021.”

That would have been an extreme and unacceptable proposal, on the basis of what colleagues have said here today. It would also have meant that every journey within the huge area bounded by the north and south circular roads would have cost £15, in addition to the expanded ULEZ charge coming in from October this year, and all at a time when families and small businesses are still reeling from the covid crisis.

It was clearly totally wrong to suggest hitting Londoners with such an increase in charges, just as we are, hopefully, recovering from a pandemic. That is why the Mayor of London, Sadiq Khan, was right to reject it and right to stand up for Londoners. I stress again that even if a decision were taken to proceed with a Greater London boundary charge for non-London residents, it would take at least two years to implement. It is a last-ditch option, forced on TfL by the Government’s failure to provide long-term funding, which is the key issue.

Let me turn to a point I made earlier on the real reason for TfL’s current predicament. It was a Conservative Government under Chancellor George Osborne and the current Prime Minister, when he was Mayor of London, who agreed to the withdrawal of the direct operating grant. The then Mayor’s decision meant that the network became almost completely reliant on fare revenue, unlike comparable transport authorities in any other global city across the western world. When fares subsequently slumped because the covid lockdown meant no one was travelling, TfL’s income collapsed almost overnight. It is thanks to Conservative decisions in the past that TfL is left between a rock and a hard place, with no easy choices for the Mayor and TfL, having to fix the Tories’ mess and raise the vast amount of money required to make up that shortfall.

To add insult to injury, it is yet again a Conservative Government who are more determined than ever to force through a new era of cuts and the retrenchment of transport in the capital. That is unacceptable. The Mayor, TfL and businesses are united in knowing that would be completely counterproductive. Our capital city, whose economic contribution benefits the rest of the country immensely, is so much more dependent on public transport than elsewhere in the country.

The Government hold all the cards here. On behalf of all Londoners, I urge them to once and for all stop the politicking, put their hands in their pockets, properly fund our capital’s public transport network and allow London to keep its share of VED. If the Government fail to act, my advice to Conservative MPs here today and colleagues across London, including those who have spoken, is to direct their anger to the Transport Secretary and this Government. It is they alone who should carry the can. I have not heard one single word from them about an alternative. Their silence speaks volumes. London deserves better; indeed, Britain deserves an awful lot better.