Congestion Charging

01/05/03 - Congestion charge section

CC hits small firms hard

By David Williams, Motoring Editor

Evening Standard

Congestion charging is hitting small businesses severely and damaging London's economy, a study claims today.

The charge penalises traffic that has no choice but to enter the zone and imposes a "ceaseless" administrative burden on small firms.

The influential Federation of Small Businesses says the effects are "particularly severe" for firms involved with deliveries, domestic appliances and with the elderly or infirm. While the £5 charge was "inconsequential" for big corporations, it was a "significant percentage of the total value of delivery" for a plumber.

"Where business relies on passing trade, the scheme can have serious consequences," says the FSB. Charging has caused prices to rise and forced some small firms to close or move from central London, and there is strong anecdotal evidence that businesses inside the zone are losing trade to firms outside.

The study also says the charge had not necessarily reduced congestion as the areas where gridlock had been worst had suffered from roadworks or traffic lights being re-phased. "The clearing up of these problems immediately eased traffic flow."

Since charging began, areas outside the zone including Victoria, Nine Elms, Chelsea Bridge, Battersea Bridge, Edgware Road and parts of Kennington were congested for "large parts of the day".

The FSB study comes as the London Assembly Transport Committee launches a hearing into the effects of the charge. Angie Bray, Conservative Assembly spokesperson on the charge, said today: "The scheme was introduced with no consideration for people and businesses that have no alternative to using cars or commercial vehicles."

She added: "Given that the Government has cut London's transport grant for the next two years by an amount matching the predicted congestion charge revenue, it is now clear that charge revenue will not be available for additional investment in public transport."

A Transport for London spokesman said it was still "far too early" to draw conclusions.

Find this story at http://www.thisislondon.co.uk/traffic/congestioncharge/articles/4633082?version=1
©2003 Associated New Media

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