Tonight the Standard is reporting that the Mayor and TfL are plotting to increase Congestion Charge fines to £120 from £100. As we already know fines exceed the net profit this thing generates every year so the fines income is all that stands between Livingstone and abject failure.
Typically for a bunch of journalists, no science degrees between them I don’t suppose, they get the number all wrong. The editorial says:
Given that fines are a big part of the economics of congestion charging, accounting for nearly 45 per cent of the net annual profit from the scheme, there will be plenty of motorists who suspect thast the increase has more to do with raising revenue than with enforcement.
I think they get this number by dividing the wrong number for fines income last year (£55 million) by last year’s gross profit. Last year’s fines income was actually £95.0 million as winkled out by LibDem AM Hamwee, see previous posting. Last year’s net profit was actually £89.1 million as published in TfL’s statement of account and audited by the Audit Commission (figures here). Fines income therefore EXCEEDS net profit.