Small London retailers have suffered badly from lost trade due to the capital’s traffic congestion charge, a new report has found.

The study, by the Royal Institute of Chartered Surveyors (RICS), revealed that 90 per cent of retailers in the charge zone, which covers most of central London, were against the scheme.

The charge, which marks its first anniversary tomorrow, was blamed by unhappy shop owners for deterring customers from travelling into the charge zone and spending money in their stores.

RICS found that 64 per cent of commercial property surveyors felt that the impact on retailers depended on where they were located within the zone.

Small firms operating on the zone’s boundary were found to have suffered most over the past year, as customers or clients living just outside the zone were unwilling to travel in and pay the charge.

However, the survey found that there was little evidence of businesses relocating outside the zone, although the charge has become a factor in rental negotiations.

The charge, which costs drivers £5 a day to travel into the zone between 7am and 6.30pm on weekdays, has been repeatedly criticised for cutting down on the passing trade that small retailers depend on.

Over the past year, the increased threat of terrorism and frequent public transport troubles have also blighted small companies in central London, with studies showing an increase in business failures in the past 12 months due to falling customer levels.

Despite objections from businesses, the scheme is set to be introduced to other cities in the UK as a way of cutting congestion and raising revenue for public transport.

Louis Armstrong, chief executive of RICS, said that the charge was a bold initiative which was greeted with mass scepticism and fears of technical failure.

“In fact it has worked very well, making the capital cleaner, quieter and more navigable by road.

“But the full impact on the complex organism that is a city has yet to become clear. The effect of retailers may not be fully felt for years to come and public transport in London needs sustained attention and investment for the concept of reduced car use to work.

“It is one link in a chain of initiatives that will help to connect Londoners to where they want to live and work. It cannot achieve these results in isolation,” he said.