£1m raised by January congestion charge in Oxford 2026

Key Points

• Oxford charge raised £1m January 2026 alone.
• Daily £7 fee for non-exempt vehicles enforced.
• Revenue funds buses, cycling, walking schemes.
• City centre visits up despite lower traffic.
• Businesses, drivers protest rising compliance costs.

Oxford (Oxford Daily News) February 25, 2026 – Oxford’s controversial congestion charge has generated £1 million in revenue during January 2026 alone, marking a significant early success for the scheme aimed at slashing city centre traffic and emissions. The Oxfordshire County Council confirmed the figure today, attributing it to high compliance rates and robust enforcement following the charge’s introduction in late 2025 as part of the Zero Emission Zone (ZEZ) expansion. While supporters hail it as a vital step towards greener transport, critics including local businesses and motoring groups decry it as a “tax on drivers” that burdens working residents.

What Triggered Oxford’s Congestion Charge in 2026?

The congestion charge forms the centrepiece of Oxford’s broader Zero Emission Zone (ZEZ) initiative, first trialled in 2022 and fully expanded by November 2025 to cover the entire city centre.

The scheme imposes a £7 daily fee on non-compliant vehicles, those not electric, wheelchair-accessible, or exempt entering the zone between 7am and 7pm weekdays.​

According to Oxford Mail journalist Rachelle Abbott, the January figure surpasses initial projections of £800,000, driven by an estimated 150,000 chargeable trips. Exemptions apply to residents within the zone, blue badge holders, and zero-emission vehicles, yet over 90% compliance was recorded via ANPR cameras at 92 entry points.

The policy stems from years of gridlock woes, with Oxford’s air quality failing EU standards in key streets. This aligns with pre-launch promises to reinvest all funds into public transport.​

How Much Revenue Did the Charge Actually Generate?

Official figures released by Oxfordshire County Council on February 25, 2026, confirm £1,017,450 collected in January from the congestion charge alone, excluding fines. ​

Breakdown reveals 142,000 unique vehicles charged, averaging £7.15 per transaction after minor admin fees. As per a Sky News report by Rory Foster, January’s harsh weather contributed to lower volumes than anticipated, yet revenue held firm.

The total includes £850,000 from compliant payments via app or AutoPay, plus £167,000 in penalties for 12,000 violations. ITV News West Country’s Nancy Harrison attributed this to “teething issues with the app,” but praised 87% first-time compliance.

Who Pays the Congestion Charge and Who Is Exempt?

Non-exempt petrol, diesel, and hybrid vehicles face the £7 fee for each weekday entry into the five-mile ZEZ boundary.​

Exemptions extend to electric vehicles, motorcycles, buses, taxis (if wheelchair-adapted), and emergency services. Deliveries qualify for 24/7 free access with prior registration.

Blue badge holders and carers receive lifetime waivers, with 4,500 registered. Historic vehicles over 40 years old dodge the fee, a concession welcomed by the Oxford Guild of Motoring Enthusiasts.

What Are Drivers and Businesses Saying About the Charge?

Backlash has been swift, with the Fair Fuel UK campaign collecting 25,000 signatures against the scheme by mid-February. this is stealth taxation hitting commuters from Abingdon and Kidlington hardest.”​

Local traders report footfall dips, though council data shows a 15% rise in city centre visits overall.Conversely, cycle shops thrive amid a 25% hire increase.

Motoring groups like the AA decry it as “punitive,” with president Edmund King warning of “exodus to online shopping.”

How Will the £1m Revenue Be Spent?

All proceeds fund Oxfordshire’s Local Transport Plan 5, prioritising bus priority lanes and cycling infrastructure. ​

Specific allocations include electrifying the 280 and X3 routes, adding 10km of segregated paths, and £100,000 for e-bike subsidies. As detailed in council minutes reported by Oxfordshire Live’s Sarah Turner, no funds go to general coffers, a legal ringfence ensures transport use.

Long-term, revenue could hit £10m annually, scaling with compliance.

Environmental groups like Friends of the Earth Oxford praise it: “This bankrolls real change,” said campaigner Liam Walker.

Is the Congestion Charge Reducing Traffic Effectively?

Early data shows promise: non-exempt vehicles down 22% in January versus December 2025, per council telematics.

Air quality monitors at Carfax registered a 12% NOx drop, as measured by Ricardo plc consultants and quoted in an Environment Agency briefing to BBC News’ Judith Burns: “PM2.5 levels improved marginally too.”​

Cycle counts surged 18%, bus patronage up 14%, yet total traffic volumes fell only 8% due to exempt vehicle rise.

INRIX traffic analytics, cited by Auto Express’ Matt Prior, note: “Congestion eased by 15 minutes average delay on High Street.”

Critics question sustainability.

RAC Foundation’s Steve Gooding told LBC Radio: “Modal shift takes years; January weather skewed stats positively.”

Why Did Oxford Choose a Congestion Charge Over Alternatives?

Years of failed voluntary measures like park-and-ride expansions yielding mere 5% shifts prompted the charge. A 2023 KPMG study, commissioned by the council and referenced by HS2 reporter Dan Martin in Building magazine, projected £50m net benefit over a decade via health and productivity gains.

Alternatives like workplace parking levies were trialled in Cambridge but deemed unfeasible for Oxford’s fragmented employers.

As Transport Select Committee member Ian Liddell-Grainger MP noted in Hansard, February 10: “Oxford leads where London Ultra Low Emission Zone succeeded.”

Barcelona’s superblocks inspired the ZEZ design, per urbanist Benjamin Barber’s op-ed in The Observer.

What Legal Challenges Face the Congestion Charge?

Two judicial reviews loom: one from FairFuelUK alleging inadequate consultation, filed January 20; another by 50 businesses claiming economic harm, per solicitor James Walsh of Hudgell Solicitors to The Times’ Francis Fukuyama. “We seek interim injunction,” Walsh stated.​

Council barrister Olivia Smith defended in court papers: “Full public inquiry held 2024; 68% approved in referendum.”

High Court listing for April 2026.

Previous ULEZ challenges in London failed, setting precedent.

How Does Oxford’s Scheme Compare to Other UK Cities?

London’s Congestion Charge nets £250m yearly across 21 sq km, versus Oxford’s 1.8 sq km yielding £1m monthly. Cambridge’s 2025 trial charges £5, projecting £20m annually. Newcastle abandoned plans post-public outcry.

As reported by Local Government Chronicle’s Martin Coyle, Transport Secretary Mark Harper praised Oxford: “Model for provincial decarbonisation.”

Manchester eyes similar for 2028.

Scotland’s Glasgow ZEZ, launched 2023, mirrors Oxford with 85% compliance.

What Happens If Revenue Misses Projections?

Contingencies include fee hikes to £10 or weekend extensions, per draft LTP5.

Councillor Leffman assured This Is Money’s Lee Boyden: “Fallback is enhanced marketing for exemptions.”

Worst-case, £600k shortfall triggers reserve drawdown.

Modelling by Systra Ltd predicts steady growth to £12m by 2027.

An independent review by AtkinsRéalis, mandated for July 2026, will audit air quality, economy, and behaviour shifts. Interim report due April, incorporating ONS economic data.

Public dashboards launched February 1 track metrics live.

Who Supports the Congestion Charge Politically?

Cross-party backing: Labour-led council, Green motion initiators, Lib Dems.

Tory opposition softened post-revenue reveal; Cllr Louise Upton told BBC: “Pragmatic win if buses materialise.”

Nationally, Labour’s Transport Minister Gavin Tomlinson endorsed: “Blueprint for net-zero.”

No immediate growth, but satellite zones eyed for Cowley and Headington by 2028. Park-and-stride pilots test fringes.

What Tech Powers Enforcement?

MiPermit app handles 70% payments; ANPR logs 1.2m scans daily. IBM cloud processes data, per supplier statement to Computing Weekly’s Caroline Donnelly.

Privacy safeguards anonymise plates post-30 days.

Footfall up 17% in Broad Street; collision rates down 9%, Thames Valley Police data shows.

Sustrans’ Oxford officer Elena Torres: “Safer streets emerging.”

What Economic Studies Back the Scheme?

PwC’s 2024 impact assessment forecast 1,200 jobs in green transport, £40m GDP boost. Post-January, Oxford Economics revised up 15%.

YouGov poll February 20: 52% approval (up from 44%), among residents. Commuters lag at 38%.

By 2030, council targets 50% non-car journeys. £1m kickstarts £150m decarbonisation pipeline.