Posted on the 20th November 2025 in PHTM News
MILLIONS UNSPENT: NEWCASTLE CAZ VEHICLE GRANT SCHEME SET TO CLOSE ON JANUARY 2026
A government grant scheme intended to help drivers and businesses purchase cleaner vehicles to avoid tolls in Newcastle’s Clean Air Zone (CAZ) is set to close on January 30 next year, with approximately £8 million of the original £15 million still unspent.
Newcastle City Council announced it will stop taking requests for the CAZ upgrade grants on that date. Since applications opened in November 2022, less than half the available funds have been distributed.
The council confirmed that after all final applications are processed, any remaining cash will be redirected toward upgrading the region’s bus fleets to cleaner models to deliver “maximum benefit” in emissions hotspots like Percy Street. However, the distribution details for this public funding remain unclear.
Labour councillor Juna Sathian, cabinet member for climate and transport, urged eligible parties to apply quickly, stating: “Financial support is still available but this will be coming to an end in January so I would encourage anyone who is eligible who has not yet applied to do so as soon as possible.”
So far, the council has paid out more than £5.5m to over 1,100 local businesses, tradespeople, and taxi drivers, with a further £900,000 committed for bus improvements.
Grants have been issued for 620 taxis, 424 LGVs, 65 HGVs, and 34 coaches.
While there was “high demand for funding at the launch of the scheme,” applications have since “significantly declined.”
The scheme previously faced criticism from small traders over its strict entry criteria, which initially required applicants to prove a need to enter the CAZ at least twice a week. This rule was later relaxed in 2024 to qualify any van, LGV, or minibus subject to CAZ tolls and registered in Newcastle, Gateshead, or North Tyneside.
Taxi drivers in South Tyneside also complained about being excluded from the financial support, saying they were being priced out of journeys into Newcastle.
The CAZ imposes daily tolls of £12.50 or £50 on older, non-compliant buses, vans, coaches, taxis, and lorries, in response to a Government order to reduce illegal emission levels.
All private cars remain exempt from the charges.
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Agree or disagree with this member of trade's email to Thanet council .
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