The Mayor’s latest congestion charge plans are ‘confused’ and will drive customers away, retailers have complained.

The British Retail Consortium (BRC) says shifting focus away from raising money for improved public transport, to trying to reduce the capital’s carbon emissions will make it harder for consumers to shop in London.

Ken Livingstone announced plans earlier this week which will mean congestion charge payments will be based on the level of emissions the vehicle creates.

The owners off road vehicles or ‘Chelsea Tractors’ could pay as much as £25 per day, and those who live in the congestion charge area would lose their 90% reduction.

However, BRC has expressed concern over the outcomes of a new emissions-based system.

“We’re in favour of the clean-up of London air in principle,” Richard Dodd of the BRC told Crimson Business. “But the objective of the congestion charge has become increasingly confused.

“When it was set up in 2003 one of the main aims was to raise money for public transport improvements.

“The new emissions-based system may defeat that original aim if it means a surplus of cash won’t be raised from charges.”

Dodd expressed concern that if no money is raised for transport improvements, drivers would be put off by the congestion charge, and have no public transport alternative, resulting in them shopping elsewhere.

Dodd also argued that the western extension to the congestion charge should not be introduced until there was more detailed evidence on the impact on retail of the existing congestion zone.

Small businesses will also be heavily affected by Livingstone’s plans for a London-wide low emission zone, according to Dodd.

From 2008, diesel engine lorries, coaches and buses that fail to meet a minimum pollution standard face having to pay a charge if they drive within Greater London.

The Mayor said the charge would act as an incentive for businesses to clean up dirty vehicles.

However, Dodd argues that small businesses will be the ones that suffer.

“Many small businesses cannot afford to replace their current vans and lorries with greener vehicles, so they’ll simply be burdened with a charge for driving in London.”

© Crimson Business Ltd. 2006