A business lobby group has warned that the new low-emissions zone could have a crippling effect on small businesses operating in London.

The new zone will see owners of diesel-fuelled goods vehicles over 3.5 tonnes which fail to meet EU pollution standards charged £200, with non-payment fines of up to £1,000.

The Forum of Private Business (FPB) said that although it welcomes moves to tackle climate change, more could be done to help small businesses adjust to the new charges.

The group added that small hauliers in particular could be affected, with rising costs meaning that they could be pushed to increase their prices.

The Road Haulage Association (RHA) also expressed concerns, after it estimated that almost 20,000 vehicles will be affected by the charges. It said the 28-day warning period introduced by Transport for London (TfL) to help hauliers comply was too short.

“We will be monitoring the situation carefully and will approach TfL for a further extension, if necessary,” said Roger King, the RHA’s chief executive.

Matt Goodman, the FPB’s policy representative, added that evidence suggested the charges may not cut pollution.

“Tackling pollution from vehicle emissions has to be a priority, but an independent review found that emissions charges are likely to lead to increased traffic and worse congestion.

“Taken with the burden of additional costs, this move could have a disastrous impact on many smaller businesses,” he said.

© Crimson Business Ltd. 2008