London mayor widens car scrappage incentives after clean-air zone outcry

LONDON (Reuters) -London’s mayor will extend a car scrappage scheme to more drivers in a bid to calm opposition to a contentious clean-air zone that has put pressure on the opposition Labour Party before a national election expected next year.

Labour clearly leads Prime Minister Rishi Sunak’s Conservatives in opinion polls against, but a narrow by-election loss last month in outer London has been blamed on Labour mayor Sadiq Khan’s expansion of the Ultra Low Emission Zone (ULEZ), which will cover all of the British capital from Aug. 29.

The ULEZ, which imposes a daily charge of 12.50 pounds ($16) on drivers of older, more polluting vehicles, has spurred concerns of economic damage during a cost-of-living crisis. Khan has defended it as vital to stop deaths linked to air pollution.

The mayor will use an extra 50 million pounds from City Hall reserves to extend to everyone a 2,000-pound ($2,500) grant to scrap a non-compliant vehicle, previously provided only to people with disabilities or low incomes, or to small businesses.

Scrappage payments offered to charities, businesses and others will also be increased.

“I’ve continued to listen to Londoners’ concerns in recent months,” Khan said. “Every single Londoner with a non-ULEZ compliant vehicle will now be eligible for financial support.”

Although all Londoners can apply, the grants will be offered on a first-come, first-served basis and the allocated funding will not stretch to all non-compliant vehicles.

City Hall estimates 90% of cars in outer London are already ULEZ-compliant, leaving about 160,000 cars not in compliance. Opponents say that figure could be much higher.

Following the recent by-election loss, Labour leader Keir Starmer had publicly asked Khan to reflect on the defeat.

“This is too little, too late from Sadiq Khan, who is facing mounting pressure from Londoners and his own party,” said Susan Hall, the Conservative candidate for a mayoral election next year.

“Thousands of families, small businesses and charities face financial ruin,” she said.

($1 = 0.7874 pounds)

(Writing by William Schomberg and Sachin Ravikumar; editing by William James)

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