Companies are feeling the strain of the Congestion Charge (CC) and the London Mayor should not make further increases, businesses say.
The Forum of Private Business (FPB) is warning that a year after the CC was raised to £8 small firms are feeling the strain and would suffer far more if, as planned, it rises to £10.
The FPB have carried out a ‘snapshot survey’, which shows that over two-thirds of firms in the capital have seen a drop in profits since the increase.
Shopkeepers are particularly concerned about further increases and say that they are facing stiff competition from stores outside the charge area.
They argue that retailers in shopping centres, such as Bluewater in Kent, or Brent Cross in north London, enjoy an unfair advantage as they are outside of the zone.
Nick Goulding, chief executive of the FPB, says Mayor Ken Livingstone should rethink his commitment to a further hike.
He said: “Mr Livingstone has made his intentions clear; should he be re-elected he would increase the Congestion Charge to £10, meaning that the burden on business will have doubled since its introduction.
“Although the Congestion Charge seems to have had little impact on the number of vehicles on the road, it has become an excellent way of raising revenue, whether that money is being spent wisely on improving public transport is another matter.”
© Crimson Business Ltd 2006
