London businesses weary over pollution toll

LONDON

Days ahead of the controversial expansion of London's road charging scheme for the most polluting vehicles, businesses in the British capital remain wary despite the mayor unveiling further subsidies.

The extension of the Ultra-Low Emission Zone (ULEZ) to all of Greater London tomorrow has sparked a wider public backlash as Britons grapple with a cost-of-living crisis fuelled by decades-high inflation and low economic growth.

A third of London businesses are concerned that the 12.5 pounds ($16) daily toll set to be applied across the city will have a negative impact on their employees, according to the London Chamber of Commerce and Industry (LCCI).

Around 40 percent of those based in the suburbs - where the scheme is being expanded to - believe it will increase their costs, it found.

James Watkins, of the LCCI, said bosses were "relieved" after under-fire Labour mayor Sadiq Khan announced increased financial support for owners of more polluting vehicles affected by his ULEZ extension.

Under the new support measures, owners of older petrol or diesel vans - many thought to be self-employed and small-business operators - can receive 7,000 pounds in scrappage reimbursement, compared with the previous 5,000 pounds.

Meanwhile, every Londoner will now be eligible for grants of up to 2,000 pounds to scrap their non-compliant vehicle.

Largesse comes at a cost: the mayor's budget for the bonus has jumped by 50 million pounds, and now stands at 160 million pounds.

Khan bowed to growing pressure to offer more financial support after his signature policy was accused of hitting those already struggling with their bills the hardest.