Council which raked in millions from illegal LTN 'cash cow' scheme to refund thousands of drivers

Council which raked in millions from illegal LTN 'cash cow' scheme to refund thousands of drivers

WATCH: Mike Parry erupts at 'outrageous cash cow' LTN scheme

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GB NEWS

James Saunders

By James Saunders


Published: 22/03/2026

- 06:39

Croydon Council misused the highly controversial scheme despite floods of public fury

A London council which made millions from an illegal LTN scheme will now refund thousands of drivers.

Croydon Council has decided against appealing a High Court ruling that declared six of its low traffic neighbourhoods to be unlawful.


The authority will now dismantle the schemes and return millions of pounds to motorists who received fines.

A judge determined that the council's primary motivation for maintaining the LTNs was financial gain - rather than actually improving the environment.

The schemes, which banned drivers from outside the borough using certain roads, were found to be a "misuse" of traffic legislation.

Mr Justice Pepperall concluded that protecting enforcement revenue was "the dominant purpose" behind keeping the restrictions in place.

Now Croydon Council - which has been declared effectively bankrupt multiple times - will repay penalties issued from March 2024 onwards.

A judicial review was brought by residents who argued the council used the LTNs to fill a financial "black hole".

In his 33-page ruling, the judge found he was satisfied that, on the balance of probabilities, revenue protection was its main objective.

A vandalised LTN sign in Dulwich, south London

PICTURED: A vandalised LTN sign in Dulwich, south London

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GETTY

Mr Justice Pepperall cited an article from 2024 in which Mayor Jason Perry admitted he could not honour his election promise to remove the LTNs because "£20million of future income would have to be replaced".

The judge noted the mayor's "apparent lack of public enthusiasm for the road safety or health case for these schemes" and observed that "his hands [were] being tied by budgetary considerations".

Council documents revealed that officials anticipated generating a £10.7million surplus from fines had the six LTN schemes operated between 2023 and 2027.

A Freedom of Information request showed that CCTV enforcement of the restrictions brought in £1.4million for the authority in a single month alone.

Mr Perry said the "important thing" was to set up an "easy process" for motorists to claim back their money.

The council will now contact those who received penalties to explain how they can reclaim up to £160 per fine.

A spokesman for Open Our Roads, the grassroots campaign that brought the judicial review, said: "We were pleased the mayor was swift in making the decision not to appeal, rightly in our view, as this allowed closure and certainty for the community."

The High Court in London

Croydon Council eventually backed down and decided not to appeal a High Court ruling

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GETTY


"We understand the council has brought in a fair refund system for those reclaiming fines paid and we clearly support that."

The six LTNs were first established during the pandemic in 2020 before being made permanent at the start of 2024.

The six affected streets are Albert Road, Dalmally Road, Elmers Road, Holmesdale Road, Parsons Mead and Sutherland Road.

Automatic number-plate recognition cameras monitored the restricted areas, with drivers who breached the rules slapped with penalty charge notices of £160.

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