Draft Clean Air Zones Central Services (Fees) (England) (Amendment) Regulations 2026

Greg Smith Excerpts

Wednesday 10th June 2026 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve with you in the Chair this afternoon, Mr Wishart.

Across the country, drivers, particularly of older, often less expensive vehicles, have been hurt by the fees imposed by low emission zones and so-called clean air zones. Between ultra low emission zones and clean air zones, it is estimated that over £1 billion has been extracted from the public who are just trying to get about and live their lives: travelling to work, taking the kids to school, completing the family shop, getting to medical appointments or visiting relatives. Despite clear guidance that clean air zones are not to be used to raise revenue, in practice they are used for precisely that, generating significant money for the authorities that will be impacted by today’s regulations.

If we consider two of the largest authorities impacted by the changes, Bristol’s clean air zone brought in over £22 million in 2024-25 from daily charges and penalty notices. That brought a transfer to Bristol’s reserves of over £16 million, which contributed to the spending of £14 million on other transport projects.

Meanwhile, a 2026 report by Birmingham city council showed that the authority had spent over £92 million from net surplus revenue since its scheme was put in place. Of that £92 million, over £73 million was spent on active travel and transforming the city centre. While these can be worthy goals, it reflects a complete disregard for the motorist, with only £10 million being spent on issues such as road safety. That is indicative of the fact that authorities have repeatedly used clean air zones as a mechanism for funding other projects. The Minister will no doubt recognise that is not the purpose of the system but a by-product of it, and one that these regulations will impact.

I listened carefully to the Minister’s speech, in which he extolled the virtues of clean air. Getting clean air is a worthy goal, but it is not the stick that works on this occasion; it is the carrot. It is using technology as our friend—even modern diesel cars are cleaner than their predecessors. It is the evolution of technology and leaning on future technologies, from battery electric to synthetic fuels and more, that will deliver clean air, not just punishing people for what they happen to be able to afford today.

The draft regulations will impose a fee on authorities that use the central services function operated by the Government. On the face of it, there should be nothing to be worried about. According to the Government, there will be no impact on motorists. However, it would be naive in the extreme to believe that further costs will not be imposed on drivers—in other words, that these increased charges will not just be passed on to drivers who are already struggling with the cost of fuel, road duty, insurance costs and so much more.

The Minister had the audacity to reference fuel duty, which is one of the weakest of the Government’s U-turns. They tried to pretend that they were keeping it low, but then they U-turned and said, “It won’t be September that we put it up; it will be a few months later.” The Government are still going to put fuel duty up and impose this additional burden on motorists. Are we really to believe that local authorities, which have revelled in using drivers as a cash cow, will allow the multiple millions that will be transferred to the Government on the basis of this increased fee to simply vanish overnight?

Let me be absolutely clear: the Conservatives oppose this instrument. Our opposition to the proposal is because we are concerned that the effect will not merely be about cost recovery for the central services but will encourage further action from local authorities to raise yet more money from drivers. That is a consequence of these changes that I fear the Government have not properly considered.

Furthermore, clean air zones are meant to be transitory, to improve air quality—although I question whether they do—and then find alternative solutions. That is why local authorities were strongly encouraged to find other mechanisms to control air quality, without resorting to clean air zones. Allowing these services to be used until 2031 suggests that there is no clear path for moving away from the existing rules, which cost motorists so dearly.

Driving is not a luxury. For millions, driving a car is necessary for daily life. It is freedom and a right that all of our constituents should be able to enjoy unencumbered by the state, whether national or local. Driving is practical. A weekly shop for a family of five cannot be carried on the back of a bike. The measures that Labour is introducing walk all over the realities of life for millions for whom the car is essential. This is Labour’s war on the motorist, and it is unjust. This instrument fans the flames of that war on the motorist, and we will oppose it.

--- Later in debate ---

[Simon Lightwood]

I have heard that a couple of drops of olive oil is quite good for temporary hearing loss, so let me reiterate once again that this is not a tax on motorists. We do not expect local authorities to raise their charges to motorists on account of it, and we have expressly asked them not to do so.

[Greg Smith]

If local authorities pass on the fee, what will be the Government’s response?

[Simon Lightwood]

We have said, very clearly, that if this results in a shortfall, we will top it up through the new burdens assessment.

This is about good governance. The previous Government said they would review the costs when the data became clear. Good governance means that the Government provide a service that aligns with managing public money to ensure full cost recovery. We are doing this now because the last Government failed to increase the central services fee, which is designed to cover the cost of administering the services since they introduced clean air zones in 2020.

Most motorists entering a clean air zone will pay no charge at all because their vehicle is compliant, and the proportion is likely to continue to increase. The Government’s £2 billion electric car grant has helped 120,000 UK drivers move to zero emission vehicles since July 2025.

Clean air zones are designed to clean up air and should not be used as a revenue raiser for any organisation. I can assure hon. Members that clean air zones are not a revenue raiser for the DFT. By moving the fee to £4, we are still subsidising central services to the tune of 10%. Under the new burdens doctrine, the Department will pay for local authority deficits that arise in their CAZ operations.

The Government have worked closely with local authorities to prepare them for the fee increase and to understand the impacts. Local authorities that currently generate a surplus from their clean air zone will see some reduction in revenue following the fee increase, but no local authority will be left in deficit.

To answer the question from my hon. Friend the Member for Shipley, any move to scrap a clean air zone before there is clear and sustained evidence of improved air quality would be both premature and reckless. Clean air zones were introduced to deliver compliance with legally binding air quality limits. Authorities are required to retain them until compliance has been achieved and maintained.

I hope I have reassured Members that these regulations will ensure that clean air zones continue to operate effectively and fairly. I therefore commend the regulations to the Committee.

Question put.