London Congestion Pricing Zone Has No Impact on Local Spending

The city’s cordon pricing scheme did not affect how much people spent at local businesses, new research finds.

1 minute read

January 23, 2025, 9:00 AM PST

By Diana Ionescu @aworkoffiction


Close-up of green "Ultra low emission zone" ULEZ sign in London, UK.

VV Shots / Adobe Stock

London’s congestion pricing zone, known as the Ultra Low Emission Zone (ULEZ), has not economically harmed local businesses, according to new research.

In an analysis of credit card transactions within the zone, “The 2023 trend line does not fall below the 2022 one: there was no above–expected negative spending effect caused by ULEZ’s expansion.”

According to a post in Centre for Cities by Oscar Selby, “So far, card transaction data does not suggest that ULEZ is harming high street spend. This should reassure policy makers in London, who committed to the emission zone a while ago, and strengthen the convictions of policy makers in New York who are now following suit.” 

Meanwhile, the public health and transit benefits are clear, both in London — “London has the worst air quality of any UK city and the capital’s emission zone is helping to change this” — and, more recently, in New York, where the congestion pricing program’s first week yielded faster bus commutes and reduced congestion.

Thursday, January 16, 2025 in Centre for Cities

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