Sadiq Khan’s hated ULEZ plans will hit London’s economy by half a billion pounds every year, damning new research claims

PLANS to widen a traffic eco scheme will wipe £500million a year from the capital’s economy, researchers claim.

London mayor Sadiq Khan wants to extend the Ultra Low Emission Zone (ULEZ) to the M25 from August.

It will cost the city’s economy another £369million on top of the £253million caused by the existing scheme, the Centre for Economics and Business Research warns.

Howard Cox, of lobbying group FairFuel — which commissioned the research — said the expansion “not only fleeces drivers, sole traders, and low-income motorists, it also rips at least half a billion out of the capital’s economy per year.”

Only newer vehicles which meet stricter standards on emissions will avoid paying a daily charge of £12.50 — which is expected to hit an extra 1.2 million cars.

The penalty for those who don’t pay will rise from £160 to £180.

It will see City Hall rake in millions of pounds in extra fees.

Tory MP Craig Mackinlay said: “This is all about money for a failed administration wrapped up in greenwash.”

FairFuel claims vans will be 4.5 times harder hit than cars by the move.

A spokesperon for the Mayor said FairFuel’s claims were flawed and ignored the positive impact to business of the £110million scrappage scheme and economic benefits of improving Londoners’ health.

They added: “Policies to help a further five million Londoners breathe cleaner air are essential.”