The ULEZ expansion comes into force tomorrow, tradespeople are set to be among those worst hit by the new regulation. Research from the Federation of Master Builders has shown that increases to transportation costs, such as rising parking fees over the last 18 months has forced 80% of tradespeople in the Capital to increase their prices. Now, in new national research revealed by Fix Radio – the UK’s only national radio station for builders and tradespeople – it has been shown that the ULEZ expansion will have a direct and detrimental impact on close to a quarter of all construction businesses in Greater London, with another 21% saying that increased transportation costs has made travelling into cities with their van an impossibility, increasing to 23% in London.
The business landscape for sole traders and small businesses in the construction sector is one that is facing increasing turbulence after the lockdown boom just a few years ago. Fix Radio found that one in four businesses were on the cusp of collapse in 2022, with new research from the station now finding that almost a quarter of tradespeople have had to increase their prices as a result of inflation but are ultimately losing work as a result.
Key stats:
21% of tradespeople say it is too expensive to use their van or vehicle for work due to the cost of driving into a major city, rising to 23% in London
23% of tradespeople say they have lost work from increasing their prices in the last year due to the cost-of-living crisis and increasing transport costs, rising to 25% in London
17% of tradespeople say the ULEZ expansion and the introduction of the ‘Transit Tax’ has had a detrimental impact on their business, rising to 23% in London
Adding to these business woes, from late August, new plans to increase ULEZ in Greater London has heightened fears about the impact this will have on tradespeople who face a £12.50 daily fee for vehicles not meeting minimum requirements – this could be equivalent to more than £3,100 a year. Already suffering the results of this, Fix Radio unveiled 23% of tradespeople in Greater London said the introduction of ULEZ and the ‘Transit Tax’ where taxpayers are facing higher rates on vans for private use – has already had a detrimental impact on their business.
To combat increasing costs for tradespeople as a result of the ULEZ expansion, a £110m scrappage scheme has been launched to help fund the purchase of new vehicles that are ULEZ-compliant. Under the new scrappage fund, sole traders and tradespeople working for a micro-business (those with 10 employees and under) have been granted extra provisions of between £5,000-£9,000 to help transition to a low-polluting or EV alternative. However, for tradespeople, this allocation covers a mere fraction of what would be required to swap their vehicle. With the EV equivalent of Britain’s best-selling van, the Ford Transit, starting at £48,000 for its most basic model, the provisions clearly do not go far enough. Even for those who could afford the significant outlay to purchase a new van, a report commissioned by Transport for London estimated that 30,000 non-compliant vans currently use the ULEZ expansion area every day, despite the fact there are only 23,803 vans that meet the new requirements for sale in the UK.
This concerning outlook comes on top of the fact that the cost of steep parking fee rises, and ‘green’ motoring charges forces builders, plumbers and electricians in London to spend £70 on average before they have even walked through the door, and a total of £140 a day including operating costs, according to Fix Radio research. With the average day rate of a tradesperson equalling £150 – according to Pier Consulting – the addition of the new ULEZ charges is now leaving tradespeople in London facing a loss of 21 workdays. For some tradespeople who have reported on Fix Radio that their daily costs have been as expensive as £300 to work in the Capital, the situation is much bleaker.
Whilst the situation for tradespeople travelling to jobs is grim across the UK, the picture in London is particularly severe. The impact of the ULEZ expansion stands to undermine the Mayor of London’s plea for tradespeople to work in the Capital to help improve the city’s housing stock. With the Mayor facing difficulties in matching his proposed targets for housebuilding, Sadiq Khan said in January of 2022, “Put simply, materials and labour are needed to build homes”. However, policies such as the expansion, coupled with minimal provisions to cover future overheads, seek to undermine the supposed importance of tradespeople, deterring them from traveling into London to work on essential housing projects.
