Congestion Charge extension a 'body blow' for business

A leading business pressure group is reacting furiously to Ken Livingstone's announcement today that the westward extention of the congestion charge will go ahead from February 2007.

The Forum of Private Business (FPB) Chief Executive Nick Goulding said:

"This is an absolute body blow for small business in London which is already being crippled by the congestion charge and a slump in trading since the July bombings. The FPB made it crystal clear to Ken Livingstone earlier this year, following a survey, that more than 80 per cent of our members were ardently opposed to extending the charging zone. Mr Livingstone has obdurately ignored the reasoned voice of business. Instead, dazzled by the cash raising potential of this stealth tax, he is ploughing ahead with extending it. And let's not forget it was only in July that the c charge was hiked up by massive 60 per cent overnight from £5 to £8.

"The FPB restates its demand to the Mayor that he should suspend the congestion charge for six months to help bring visitors back into London - particularly in this critical trading period on the run up to Christmas."

The FPB conducted a survey of 500 small to medium sized firms in London in November last year and found that well over half 58 per cent had seen profits drop since the congestion charge was introduced in February 2003. Meanwhile, a third had thought of relocating, and two thirds reported a drop in footfall of clients and customers.

The westward zone will cover most of Westminster and parts of Kensington and Chelsea.