A low emission zone (LEZ) in Edinburgh will come into force on 1 June 2024. Introduced in Glasgow last year, the scheme will be rolled-out to other major Scottish cities including Dundee and Aberdeen. The implications for small and medium sized builders working in and around Edinburgh can be concerning. So, we’re taking a look at what you can do to future-proof your business by accessing funding to upgrade your vans and business fleet.
What vehicles does the Edinburgh LEZ charge apply to?
Where both the Edinburgh and Glasgow schemes differ from other schemes in the UK is that penalty charge notices (fines) will be issued right away to any non-compliant vehicles entering the zone. There is no option to pay a charge to enter. When you drive into the low emission zone, cameras set up at the point of entry will use numberplate recognition to find your vehicle in the DVLA’s database and identify whether it meets the acceptable criteria.
You can enter your registration number into an online vehicle checker to see if it’s compliant. The emission standards used for Edinburgh’s LEZ follow the Euro emission engine classification standards used across other schemes both in the UK and internationally. The following vehicles generally meet the standards (although exceptions apply):
- Zero emission vehicles including electric vehicles
- Petrol vans and cars registered from 2006
- Diesel cars and vans registered from September 2015
- Petrol and diesel taxis and private hire vehicles (separate taxi emission standards apply)
- Busses, coaches and HGVs registered from January 2013
How much is the penalty charge?
All low emission zones in Scotland will use the same penalty charge framework, which is set out to discourage repeat offenders.
- If you drive into the zone in a non-compliant vehicle, the fine is £60.
- Your fine is reduced by 50% if you pay within 14 days.
- If you re-enter within 90 days of the initial fine, you will still have to pay the first fine and you will receive a second fine which is double the amount of the first. The fine continues to double each time you re-enter until a maximum of £480 for cars and light goods vehicles, and £960 for buses and HGVs. However, a vehicle can’t be issued with more than one penalty charge within the period between midnight and 23:59pm.
What financial support is available?
1. Retrofit for non-compliant vehicles
Commercial and business vehicles may be eligible for the Clean Vehicle Retrofit Accreditation Scheme (CVRAS), which is managed by the Energy Saving Trust. It provides grants to help cover the cost to retrofit your vehicle to meet emission standards, and applies to:
- Light commercial vehicles
- Heavy goods vehicles
- Refuse collection vehicles
- Certain vans
- Taxis
How much can I claim?
You can apply for a grant to cover up to 80% of the retrofit cost, up to a maximum value of:
- £5,000 – Light commercial vehicles / wheelchair-accessible taxi (exhaust retrofit)
- £16,000 – Wheelchair accessible taxi (repowering technology)
- £16,000 – Heavy goods vehicle or refuse collection vehicle
2. Scrappage grants
You can apply for a grant to scrap your vehicle if you are an eligible micro-business with 9 or fewer employees or a sole trader living within 20km of the Edinburgh LEZ.
Check the eligibility criteria on the Energy Saving Trust website.
How much can I claim?
The scrappage grant is £2,000. If your application is successful, you may also receive an extra £1,000 towards buying a cargo bike or electric cargo bike if it will support your business needs.
Bear in mind that scrappage funding is limited and there is likely to be a rush to apply.
View a map of the low emission zone on The City of Edinburgh Council website.
3. ECO Stars
Businesses in Edinburgh can sign up to ECO Stars free of charge, to receive support with running their vehicles in a fuel-efficient way. The businesses then receive a star rating based on assessment.
How much can I save?
ECO Stars claim that savings can be as much as £2,450 per vehicle. However, this is a longer-term saving rather than funding.
What is the FMB doing to support builders?
With a large number of UK cities already under Low Emission Zone or Clean Air Zone (CAZ) schemes, the number of low emission areas is set to increase – from the ULEZ scheme expansion in London last year to towns such as Caerphilly and St Albans, which are considering CAZ as an option right now.
The benefits to air quality and public health are very real. However, listening to our members, we know this will impact small and medium-sized construction companies that operate in and around these regions. Replacing vans that were relatively cheap to purchase and run with new electric vehicles is simply unachievable for many. That’s why we’re calling for a national scrappage scheme as part of our FMB Manifesto, to help alleviate the financial burden and provide security for small builders.
