Nearly seven in ten central London firms feel that the congestion charge is having a negative affect on their business, with many considering moving outside the zone to help recover, according to a new survey.
The research, conducted by Westminster City Council, found that the £5 daily charge on motorists in central London was considered by most firms to be more harmful to business than the economic downturn.
Of the central London companies polled, 65 per cent said that congestion charging was damaging them the most, compared with 43 per cent who felt that the sluggish economy was most to blame, while just 23 per cent cited the recent closure of the central line on the Underground as the biggest culprit.
Worryingly, due to a fall in customer numbers and the charges associated with driving, nearly a third of firms said they are considering moving their business outside of the charging zone.
The charge, which was introduced in February, covers central London and runs from 7am to 6.30pm on weekdays.
Despite protests from businesses that the charge has deterred customers from travelling to their shops, the scheme has been considered a success by London mayor Ken Livingston and is expected to be extended to other parts of London and different cities across the UK.
The survey suggests that changing the times of the scheme could aid firms, with half of those polled wanting the charge to end at 1pm. Just 32 per cent supported the current operating hours of the charge.
The study backs-up a previous survey undertaken by the London Chambers of Commerce in April, which revealed that three-quarters of firms in the capital had suffered a fall in revenue of up to 15 per cent because of the congestion charge.
Cllr Colin Barrow, transport representative on Westminster City Council, said that he would be seeking an urgent meeting with Livingston to push for modifications to the scheme.
“London is paying a high price for being the only major city in Europe to charge admission. By penalising people for entering central London with the congestion charge, this is effectively what Ken Livingston has done.
“The scheme has been operating long enough now for its full effect on business to emerge and our survey clearly finds that the charge is having effects on business that need to be urgently addressed.
“The congestion charge is having unintended consequences for the efficiency and viability of London business.
“The mayor needs to respond to these consequences with solutions – not ignore the effect his grand plan is having on the economy of the city it was supposed to help,” he said.
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