Businesses to be given longer to get CAZ ready

The CAZ is being introduced to reduce levels of harmful pollution from vehicles in response to a government legal order.

The zone covers most of Newcastle city centre along with routes over the Tyne, Swing, High Level and Redheugh bridges and will affect taxis, vans, buses, coaches and HGVs that don’t meet national emissions standards.

Charges for non-compliant vehicles to enter the zone were due to be introduced from July this year but, given the proposals Newcastle and Gateshead councils submitted in October 2021 weren’t approved until April 2022, it has been agreed to put back this date to give those affected more time to prepare.

The two councils have initiated discussions with government officials to agree a revised timeline for the launch of the CAZ.

Cllr Martin Gannon, Leader of Gateshead Council, said: “It took significantly longer than we expected to receive final government approval for our plans, along with confirmation of how much funding they would provide for vehicle upgrade grants.

“This has had an inevitable impact on the time available for us to promote the grants scheme, and for businesses and drivers to access funding and get compliant.

“As we have previously said, our main concern is to improve air quality and a huge amount of work on behalf of councils and government has been focused on transport changes that promote more active and sustainable ways of getting around.

“It’s also important that we ensure that affected drivers and businesses are given a fair opportunity to prepare and, where possible, take steps that will avoid them having to pay CAZ charges.

“We’re therefore discussing a revised timetable with government to ensure that businesses can access the grant funding government has made available.”

Confirmation that the introduction of the Clean Air Zone will be postponed has been welcomed by business leaders, who said this would come as a relief to sole traders and companies already facing increasing costs.

John McCabe, Chair of the North East Chamber of Commerce, said: “Good businesses in the region will support the need for clean air improvements but the process needs to be fair. Our members need time to prepare for any changes, especially with increasing business costs.”

Reshma Begum, Development Manager – North East England, Federation of Small Businesses, said that small businesses recognise the importance of improving air quality but that the decision to postpone the CAZ launch would be “a huge relief to sole traders and small businesses across Newcastle, Gateshead and the wider region”.

And Stephen Patterson, Chief Executive of NE1, also welcomed the decision to give businesses more time to prepare, saying it was the right thing to do, particularly given the “significant impact” of the pandemic.

All preparations for the Clean Air Zone remain ongoing, including work on the installation of technology and signage and systems testing. All will progress significantly over the summer.

Final arrangements for the application process and distribution of vehicle upgrade grants are being completed and, despite councils having requested more funding for different groups, government has confirmed that the amount of funding available will be:

• Up to £3,700 for Hackney Carriage and private hire vehicles.
• Up to £4,000 for wheelchair accessible taxi and private hire vehicles.
• Up to £4,500 for vans and light goods vehicles.
• Up to £16,000 for buses and coaches.
• Up to £20,000 for heavy goods vehicles.

Businesses and individuals who feel they may be affected by the Clean Air Zone are encouraged to register for more information, including details of how to apply for financial support, at www.breathe-cleanair.com.

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Full quotes from business leaders provided below.

John McCabe, Chair of the North East Chamber of Commerce, said: “Good businesses in the region will support the need for clean air improvements but the process needs to be fair. Our members need time to prepare for any changes, especially with increasing business costs.”

Reshma Begum, Development Manager – North East England, Federation of Small Businesses, said: “The decision to postpone the implementation of the proposed Clean Air Zone in Tyneside will be a huge relief to sole traders and small businesses across Newcastle, Gateshead and the wider region.

“We all recognise the importance of improving air quality and want to contribute to achieving the same – small businesses are no exception to this.

“However, introducing daily charges for non-compliant vehicles would be crippling for businesses already struggling with the exponential increases in the cost of trading.

As businesses continue to battle the elements to survive in a very volatile period of economic recovery, the last thing they need is another unavoidable expense with little to no time to prepare.

“With this postponement providing some much-needed breathing space, Government must utilise this time to support the respective Councils in their efforts to ensure businesses are CAZ ready, well in advance of a new go-live date. Preparedness from small businesses for such a large scale and expensive change will require time, guidance, and resource.”

Stephen Patterson, Chief Executive of NE1, said, “In the short term, the decision to delay the introduction of the Clean Air Zone is the right one considering the significant impact of the pandemic and the need to give businesses adequate time to prepare effectively for these changes and the additional associated costs.

 “Businesses have been unequivocal about the importance of improving air quality and providing the best possible environment for people living, working, and socialising in the city.

 “Implementing the new Clean Air Zone has to be done sensitively and every possible effort needs to be channelled into providing certainty for business and helping them to adapt quickly to the changes, with financial support available to safeguard jobs.

“While we recognise the government haven’t provided the level of funding requested, we are pleased that funding, in the form of vehicle upgrade grants, is to be made available and we look forward to working with the council and city centre businesses to encourage their take up.

“We now eagerly await confirmation of the revised timetable for the introduction of the CAZ which will provide much needed clarity for city centre businesses moving forward.”