Introduction of a vehicle emission based charging regime for residents’ parking permits1

Officer delegated decisionDate May 2007

Introduction of a vehicle emission-based charging regime for residents parking permits

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Item XX

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Introduction of a vehicle emission based charging regime for residents’ parking permits1

Report authorised by: Robert Overall, Executive Director - Environment, Culture & Community Safety

Executive Summary

This report sets out details of a proposal to generally increase charges for residents’ permits for parking on the highway (within Controlled Parking Zones) at the same time as introducing a vehicle emission based charging regime. The proposal is consistent with the decision made by Council on 28th February 2007.
The report explains that the proposal will increase the charge for an “average” vehicle so that it is more closely aligned to permit charges in other boroughs with similar parking conditions and practices, whilst at the same time encouraging residents to consider the contribution their vehicle makes to CO2 emissions and climate change.
The report recommends that the Executive Director agrees to the advertising of the necessary Traffic Orders to introduce the new charges and regime, and to the undertaking of appropriate consultation, and subsequently, having given consideration to all responses received to the consultation and if appropriate,to authorise the introduction of amended charges from 1st July 2007.
The report explains that the impact of the proposals, should they be introduced, on vehicle ownership by Lambeth permit holding residents will need to be monitored over time to determine the impact of the proposals against the policy objectives, as part of the annual review of parking charges.
Similarly, the report advises that future reviews of parking charges will need to consider the introduction of an emission based charging regime to other parking permits and to season tickets for public car parks.

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Summary of financial implications

Introduction of a vehicle emission based charging regime for residents’ parking permits1

The financial implications are set out in detail in Section 4 of this report.

In the absence of accurate data relating to the ownership of vehicles by residents currently purchasing parking permits, it is not possible to accurately predict the additional income generated by the proposal.

However, it is estimated that the introduction of the regime described would result in an estimated additional (net) income of £957,000 in a full year.

Accordingly it is estimated that introduction of the proposal would result in additional (net) income of £675,000 in 2007/08 and a further £281,000 in 2008/09.

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Recommendations

Introduction of a vehicle emission based charging regime for residents’ parking permits1

(1)That the Executive Director for Environment, Culture & Community Safety agrees the undertaking of appropriate consultation and to the advertising of Traffic Orders in association with the introduction of the new charges and charging regime for residents parking permits set out in this report.

(2)That the Executive Director for Environment, Culture & Community Safety subsequently considers all representations prior to deciding whether or not to introduce the charges and regime as described in this report on or shortly after 1st July 2007.

Introduction of a vehicle emission based charging regime for residents’ parking permits1

I approve the above recommendations:

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Signature ______Date ______

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Post ______

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Any declarations of interest (or exemptions granted):

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Issue / Interest declared

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Consultation

Name of consultee /

Directorate or Organisation

/ Date sent to consultee / Date response received from consultee / Comments appear in report para:
Internal

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Mike Dickens / Head of Legal Services / 04.05.07 / 10&14.5.07 / Embodied in report
Bev Winter / Divisional Director (Resources, Environment, Culture & Community Safety) / 17.05.07 / 21.05.07 / Section 4
Cllr Lib Peck / Cabinet Member – Environment / 21.05.07
Cllr Nigel Haselden / Deputy Cabinet Member (Highways & Traffic) / 21.05.07

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Entered in Consultation and Events Diary?

Introduction of a vehicle emission based charging regime for residents’ parking permits1

No / If yes, date / N/A

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Report history

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Decision type: / Urgency item?

Introduction of a vehicle emission based charging regime for residents’ parking permits1

EITHER: Key decision
Entered in Forward Plan Feb 2007
/ No

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Authorised by Executive member: / Date report drafted: / Report deadline: / Date report sent:

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Dec 2006
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April 2007
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N/A
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N/A

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Report author and contact for queries:

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Tim Jackson, Assistant Director – Street Management
020 7926 1236

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Background documents

Introduction of a vehicle emission based charging regime for residents’ parking permits1

- Mayor for London’s Transport Strategy 2003

- Lambeth Local (Transport) Implementation Plan 2006

- Government’s Vehicle Excise Duty Regime

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Appendices

Introduction of a vehicle emission based charging regime for residents’ parking permits1

Appendix A – Richmond upon Thames resident parking permit charging structure

Appendix B – Current (April 2007) Lambeth parking permit charges

Appendix C – Summary of residents’ parking permit charges – London boroughs

Appendix D – Lambeth proposed residents’ parking permit charges

Appendix E – Proposed charges for durations less than 2 months

Appendix F – Estimate of distribution of residents’ permit holders vehicle ownership

Introduction of a vehicle emission-based charging regime for residents parking permits

Introduction of a vehicle emission based charging regime for residents’ parking permits1


  1. Context

Introduction of a vehicle emission based charging regime for residents’ parking permits1

1.1Global and national context

1.1.1Carbon dioxide is one of the principle greenhouse gases that are contributing to climate change. The transport sector is currently estimated to contribute around 24% of all UK greenhouse emissions – roughly equivalent to 100 million tonnes of CO2 per annum. One estimate is that personal travel produces 13% of the UK’s total greenhouse gas emissions.

1.1.2The Government is committed to reducing CO2 emissions in the UK. Aside from the Kyoto agreement, it is proposing to set targets of reducing all CO2 emissions by 20% (below 1990 levels) by 2010, and 60% by 2050. These targets are anticipated to be contained within the Climate Change Bill which is currently subject to pre-legislative scrutiny and public consultation.

A key element of the Government’s strategy relates to vehicle emissions. The “Powering Future Vehicles Strategy” (2002) outlined the Government’s aspiration that the UK should lead the global shift to a low carbon transport economy.

One target within this strategy is that, by 2012, 10% of all new car sales should be low carbon (with CO2 emissions of 100g/km or less). This is consistent with the 1998 agreement between the European Commission and the European Automotive Manufacturers Association to reduce CO2 emissions from new cars by 25% to an average of 140g/km by 2008.

There are numerous strands to the Government’s strategy to reduce greenhouse gas emissions and hence combat climate change. In the context of this report, the two relevant strands are (i) policies around road traffic reduction and (ii) the taxation (vehicle Excise Duty) regime first introduced in 2001, which essentially encourages new car buyers to move to “greener” vehicles.

1.2Regional and local comparators

1.2.1In November 2006, the Mayor for London announced a proposal to introduce differential tariffs for the daily charge associated with the central London congestion charge scheme. The basis of the differentiation proposed would be the Vehicle Excise Duty (VED) band that applies to a vehicle. Essentially those drivers of vehicles with the highest CO2 emissions (VED Band G) would face significant increases in the congestion charge, whilst those drivers of vehicles with lowest emissions (Bands A and B) would be exempt from charges. Additionally, the Mayor is proposing to withdraw the 90% residents’ discount for people living within the charging zone owning Band G vehicles.

The proposals reflect the Mayor’s concerns around the major challenge of climate change and “aim to discourage use of the most polluting cars and influence car purchasing behaviour.” It is anticipated that the Mayor would undertake consultation on the proposals during 2007 with the intention of introducing them (subject to the outcome of the consultation) in 2008.

1.2.2On 2 April 2007, the London Borough of Richmond Upon Thames introduced an emission based charging structure for resident and other parking permits and a differential charging structure for second and subsequent permits.

The emission-based regime was introduced following public consultation undertaken in November/December 2006 and subsequent statutory consultation associated with the making of the necessary Traffic Orders.

The Richmond regime applies differential charges for residents’ permits utilising the VED bands for vehicles registered on or after 1 March 2001 and engine size (cylinder capacity) for vehicles registered before that date.

Richmond has a regime whereby permit charges vary across the borough according to the nature of the controlled parking zone. The Richmond regime charging structure is shown in outline at Appendix A. It applies different charges across all the VED bands for post 2001 vehicles and utilises six bands for pre-2001 vehicles.

The maximum yearly permit charge is £300 (for a VED band G or engine size greater than 3000cc vehicle) in the most expensive zone. This represents a 200% increase on the pre-April 2007 charge for that type of vehicle. There is no charge for VED Band A vehicles – representing a 100% reduction on the pre-April 2007 charge for that type of vehicle.

Essentially within the Richmond model there are 23 different charges for a yearly resident’s permit for a first vehicle ranging from £0 to £300 depending on the type of vehicle and the location of the zone.

1.2.3A number of London authorities have resident parking permit regimes that contain elements to encourage ownership of “green” vehicles (for example, making no, or a nominal, charge for electric vehicles) or to discourage ownership of more than one vehicle per household. A number of London authorities (for example Haringey) are considering adopting the Richmond model or extending existing regimes with elements to encourage ownership or use of “greener” vehicles. However, the Richmond regime is currently the only one which is centred around vehicle emissions and designed to encourage ownership of vehicles which make a lower contribution to climate change.

1.3The Lambeth Context

1.3.1The Council is committed to making a positive contribution to combatting climate change. In February 2006 it became a signatory to the Nottingham declaration on climate change. On 8 February 2007, Cabinet approved the Lambeth Sustainability Charter, which commits the Council to “act and address…the causes and impacts of climate change”. The Council’s commitment to those aims was confirmed at the Lambeth Climate Change Conference held on 27 February 2007. Additionally the Climate Change (Scrutiny) Commission has been established with a commitment to the process of identifying opportunities for the Council to contribute to combatting climate change.

1.3.2Although car ownership within Lambeth is significantly lower than the national average and marginally lower than the Inner London average, the level of vehicle emissions present a concern with regard to both air quality and climate change.

Vehicle emissions in Lambeth are estimated to contribute 20,000 tonnes (90%) of the pollutants (NO2, PM10, CO and VOC) that are measured as indicators of poor air quality. The whole borough has been designated as an Air Quality Action Zone and the indications are that the targets for certain pollutants will not be met. It is estimated that in excess of 200,000 tonnes of CO2 were emitted by road traffic in Lambeth in 2003.

1.3.3The Council’s Transport Strategy is set out in the Lambeth Local Implementation Plan (LIP) adopted in 2005 and approved by the Mayor for London in 2006. The LIP demonstrates that the Council’s strategy for improving the environment, promoting economic growth and addressing social exclusion is through a transport policy and associated programmes that support the use of sustainable transport modes and discourage non-essential car use.

1.3.4Parking policy and practice is an important part of transport policy and the Council’s approach to parking is summarised within the Parking Enforcement Plan, which forms part of the LIP.

The Parking Enforcement Plan describes the council’s approach to the setting of charges for parking (including charges for residents’ permits). The Plan states that charges will be reviewed yearly with consideration of the following factors:

(i)the fees and charges set elsewhere, and particularly in adjacent boroughs;

(ii)the cost of providing facilities;

(iii)the turnover needed to match local circumstances and needs;

(iv)the need to discourage long-stay (commuter) parking;

(v)the impact of national and regional strategies.

1.3.5Historically, the Council has generally adopted a system of permit charges that applies borough wide. That is, the same permit charge is made regardless of the controlled parking zone (or the hours of operation of the zone). This applies to all permits (businesses, residents, traders, teachers, health staff and visitors). The only exception to this system is the application of a £10 discount for residents driving within the Congestion Charging Zone, which was introduced in recognition of the additional costs associated with car ownership within the Congestion Charging Zone.

Parking charges have been reviewed on an annual basis. The charges for all permits, with the exception of residents’ permits, have been increased in recent years. Similarly the charges for on street (pay and display and meter) and off street (public car parks) have been revised in the context of the factors described above.

The charges for residents’ permits have not been changed since 1998. The current annual charge is £60 (£50 within the Congestion Charging Zone). Appendix B shows the current charges for residents’ permits for varying durations, together with charges for other types of permit.

1.3.6In recent years, significant improvements have been made to the parking service within Lambeth. A number of these improvements were in direct response to the findings of the Parking (Scrutiny) Commission that reported in 2005. The improvements have included:

-a general increase in parking space and a better balance of provision within CPZs;

-refinement of operating times within CPZs to reflect local circumstances;

-the introduction of new CPZs where residents have indicated parking stresses are significant;

-the publication of a parking charter;

-relaxation of certain enforcement policies

-improved customer service through increased back office resources

-the revision of the parking enforcement contract as part of a continuing strategy to provide a “firm but fair” enforcement strategy.

Improvements such as the introduction of on-line permit renewal, the integration of the Brixton Parking Shop into the new Joint Service Centre and an increase in payment channels for penalty charge notices are programmed for 2007/8.

Further improvements to parking arrangements are anticipated as the Council, along with all other local authorities, responds to the recommendations within the recent House of Commons Transport Select Committee into parking and revised (Department of Transport) guidance on parking operations.

In addition to changes in parking there have been significant improvements in the arrangements and infra-structure associated with transport modes (walking, cycling, public transport) that are recognised as being more sustainable than private car use since 1998. Facilities, physical infrastructure, training and information relating to cycling have improved. Similarly, the quality, accessibility and information of public transport in Lambeth (particularly in relation to buses) have improved. Furthermore the period since 1998 has seen the introduction of city car clubs which provide an opportunity for residents to have access to a car for essential car use which avoiding ownership.

1.3.7Appendix C illustrates the current cost of residents’ permits for London boroughs. Direct comparison with other boroughs is difficult because parking charges reflect the parking pressures within these boroughs (which can vary significantly within boroughs and from borough to borough, the transport policies of the boroughs and the economic well-being of the boroughs).

Appendix C indicates that:

(i)charges in Inner London boroughs range between £30 per annum (Lewisham) to £115 (Kennington to Chelsea).

(ii)Charges in neighbouring boroughs that can be considered broadly “similar” to Lambeth in terms of location, parking stress and economic well-being (Hackney, Camden, Islington, Hammersmith and Fulham) are broadly around £80-£95 per annum.

  1. Proposals
  2. The current charges for residents parking:

(i)are inconsistent with the charges made by boroughs with broadly similar parking conditions and practices;

(ii)do not reflect the increased cost of operating the service and the improvements made since 1998;

(iii)contribute little to persuading residents to contribute to road traffic reduction within the borough in the context of the many improvements that have been made (by the borough and its transport partners) in sustainable transport facilities, infrastructure and services;

(iv)fail to provide sufficient encouragement for residents to own vehicles that cause less environmental damage through CO2 exhaust emissions or to discourage those residents who use less environmentally friendly vehicles.

2.2It is proposed to introduce an emissions based charging regime for residents’ permits that will address the issues set out in 2.1 above. The regime would introduce differential charges according to the CO2 emission rating of the vehicle – using the DVLA banding structure.