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London to Triple Traffic Charge on Polluting Cars (Update1)

By Brian Lysaght

Feb. 12 (Bloomberg) -- London Mayor Ken Livingstone will triple the city's daily congestion charge to 25 pounds ($49) for the most-polluting cars and sport utility vehicles, his latest plan to cut carbon emissions by boosting driving costs.

Owners of vehicles that emit more than 225 grams (0.5 pounds) of carbon dioxide a kilometer -- the so-called `G band' rating used for calculating U.K. vehicle tax -- will pay the increased fee to enter central London's congestion zone starting Oct. 27. The charge will be waived for owners of the least- polluting vehicles, Livingstone said at a news conference today.

The mayor introduced the charge in 2003 to reduce traffic, improve air quality and raise cash for public transportation. Milan, Stockholm and Singapore have similar systems, and New York is considering one. Livingstone has called drivers of sport utilities, known locally as ``Chelsea tractors,'' irresponsible.

``I have every sympathy with the Scottish hill climber who needs a 4x4 to get around,'' he said at the news conference. ``There's really no justification for owning cars producing this amount of carbon emissions in London.''

Livingstone has put environmental issues at the top of his agenda as he seeks a third four-year term as mayor in a May 1 election. His main opponent, Conservative member of Parliament and newspaper columnist Boris Johnson, said the mayor's plan is a ``stealth tax'' on families that need bigger cars.

``If we want to discourage car use we need fresh thinking from the mayor and not old-style tax-the-motorist policies,'' said Johnson, who rides his bicycle most days to Parliament.

Bicycle Fleet

The mayor, who says London's air quality is the worst in western Europe, imposed a 200-pound daily charge on the most- polluting commercial trucks starting Feb. 4. The city plans to introduce a fleet of 6,000 street-rental bicycles starting in 2010, a project similar to that under way in Paris, and to improve bike routes, Livingstone said yesterday.

Traffic tie-ups are increasing even though the charge has reduced the number of drivers entering the zone. The city's transportation department reported ``a sharp increase in congestion'' inside the zone in a report last year. It said the trend reflects traffic-management changes that allocate more road space for buses and bicycles, as well as roadwork by utility Thames Water, which began a program last year to upgrade Victorian-era pipes.

BMW, Range Rover

The vehicles that will pay the 25-pound charge include: Ford Mondeo cars with V6 gasoline engines; BMW 335i convertibles and 540i and 730i sedans; and Land Rover Discovery and Range Rover sport utilities, according to the U.K. Department for Transport Web site.

The least-polluting vehicles, which emit less than 120 grams of carbon dioxide a kilometer and won't pay the charge, include the Toyota Prius gasoline-electric powered car and Vauxhall Corsa and Peugeot 107 models. Livingstone owns a Prius.

The new charge will raise 30 million to 50 million pounds a year, said Peter Hendy, London transport commissioner. About 150,000 cars enter the zone each day, including about 30,000 Band G and 3,000 lower-polluting Band A or Band B vehicles, the city said. Some 70,000 fewer cars enter central London daily since the charge was introduced.

Since then, Livingstone increased the price to 8 pounds a day from 5 pounds and expanded the area covered to include west London.

The zone takes in the West End entertainment and shopping areas, the City financial district and neighborhoods such as Notting Hill, Kensington & Chelsea and Knightsbridge.

`Delighted'

Tony Juniper, director of Friends of the Earth, said he was ``delighted'' by the changes.

Milan charges drivers between 2 euros and 10 euros ($14) a day. New York Mayor Michael Bloomberg has proposed charging cars $8 and trucks $21 to enter Manhattan south of 86th Street during peak hours.

The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.

To contact the reporter on this story: Brian Lysaght in London at blysaght@bloomberg.net.

Last Updated: February 12, 2008 08:56 EST

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