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Transport plans for trains and road tax that could come into force in London after Khan and Starmer meeting

Transport plans for trains and road tax that could come into force in London after Khan and Starmer meeting
Transport plans for trains and road tax that could come into force in London after Khan and Starmer meeting

Sadiq Khan met new Prime Minister Sir Keir Starmer in Downing Street this morning as he seeks new powers over London’s rail lines and taxes. The capital’s mayor has told MyLondon he wants to take control of £500m of road tax levied in the city, which is currently collected by the Treasury.

During London’s mayoral campaign in the spring, Khan also said he wanted Transport for London (TfL) to take control of commuter rail lines when their private contracts expired, creating a “revolutionary metro system.” MyLondon reported on June 6 that Labour’s plan to nationalize the country’s railways could mean the mayor has to modify his pledge.




Speaking exclusively to MyLondon in March, Mr Khan said of tax: “One of the things I want to talk to the government about is transferring the money they raise from car tax to us. Drivers in London pay roughly £500 million in what we call road tax. That road tax money goes into the exchequer, but very little of it comes back to Londoners.

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“One of the conversations I want to have with Treasury is how we can simplify things, so road tax, other things.” Mr Khan added: “Imagine you drive, you pay road tax, you pay charges throughout the day. Technology can make it easier, but working with Treasury, DfT and others, we need to think about how we can make it easier across the country.”


Furthermore, the Evening Standard reports that the mayor has the backing of the Centre for London think tank, which advocates greater control over skills, transport and local taxes such as a ‘tourist tax’. Currently, City Hall has the power to impose a precept on council tax bills and a top-up rate on business taxes.

The mayor told the London Assembly on July 5: “I will continue to advocate for fiscal devolution along with other mayors because, among its many other benefits, it can drive stronger economic growth.”