Proposals to charge vehicles entering Greater London £3.50 per day have been criticised by industry body Logistics UK.

London mayor Sadiq Khan has asked Transport for London (TfL) officials to investigate the feasibility of a boundary charge scheme, which would only apply to vehicles registered outside the capital.

It is estimated that such a charge, which could involve more polluting vehicles being charged more than cleaner ones, could raise £500 million a year, with money raised to be reinvested in London’s transport network.

However, Logistics UK – formerly the FTA – says it is not the answer.

Head of urban policy Natalie Chapman said: “A boundary charge would be a significant blow to the recovering logistics sector; it amounts to an additional tax on the businesses working hard to keep London stocked with the goods and services it needs to operate. 

“While Logistics UK understands the troubled financial situation TfL is in, a boundary charge simply papers over the cracks – it is not a sustainable solution to its problems. 

“We are calling for cool heads – both the government and TfL need to work together to agree a long-term vision to fund the capital’s transport network.”