Labour ignored warnings as Zipcar exit hits Southwark residents

15 Jan 2026
zipcar

The Liberal Democrats have said Zipcar’s withdrawal from London raises serious questions about City Hall’s approach to transport and the support given to car-sharing schemes. 

Car-sharing plays an important role in reducing private car ownership. Planning permission for thousands of new homes across London has been granted on the basis that residents will rely on car clubs rather than owning a car themselves. 

Despite this, changes to congestion charging and vehicle incentives introduced under the Mayor and Transport for London have steadily increased costs for car-sharing operators and reduced the support available to shared, low-emission fleets. 

Liberal Democrats warned about the risk of this approach well in advance. In August last year, the Lib Dem Group on the London Assembly wrote to TfL Commissioner Andy Lord setting out concerns that proposed changes to the Congestion Charge and Cleaner Vehicle Discount would make London a less viable environment for car-sharing services.  

Those warnings were not acted on. Zipcar’s exit now leaves a growing gap between London’s transport policy and the assumptions built into many car-free housing developments. 

The Liberal Democrats have now written to Sadiq Khan calling for an urgent review of congestion charging and incentive policies, and warning that the loss of car-sharing services risks increasing private car ownership, congestion and traffic levels across London. 

Graham Neale, Environment Spokesperson for the Southwark Liberal Democrats, said: 

“Car-sharing is built into how London plans new housing. If City Hall makes it harder for those schemes to operate, people will end up owning more cars, not fewer. 

The traffic problems we’re already experiencing across the borough are only going to get worse if car-sharing services continue to disappear. We raised concerns about this direction of travel long before Zipcar announced it was leaving, and the fact it has now happened should prompt some serious reflection about the policies that led us here.” 

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