FPB warns of congestion charging's 'wrecking ball' effect

Towns and cities across Britain are being warned against introducing congestion charging schemes after a survey, by a leading business pressure group, revealed its devastating impact on small firms in London.

The Forum of Private Business (FPB) survey of 500 firms is likely to make sobering reading for the Government as its 10-year transport plan assumes that 20 English towns and cities will introduce congestion charging or a workplace parking levy by the end of the decade.

The FPB survey finds that well over half, 58 per cent, of businesses had seen profits drop since congestion charging was introduced in February 2003. In total, 14 per cent of companies reported a reduction in profits of between one and five per cent, just over half said profits had fallen by between five and 15 per cent, while a quarter of firms said profits had slumped by between 15 and 30 per cent.

Meanwhile, just under a third of businesses said they had thought of relocating as a result of the charge, while two thirds have reported a drop in the footfall of clients and customers since the scheme was introduced.

The FPB's Chief Executive Nick Goulding said the survey is a 'stark and compelling' warning to other cities, thinking of introducing congestion charging, as well as David Begg, the Chairman of the Commission for Integrated Transport and a prime mover behind plans roll out schemes across the UK.

"Our survey shows beyond any doubt that congestion charging is having a devastating impact on small businesses,' he said. "The likes of David Begg, who has the ear of government, must not turn a blind eye to its findings. With out-of-town shopping centres, supermarkets and the internet, small businesses are finding it harder and harder to compete. If more congestion charging schemes are brought in it will sound the death knell for the traditional high street. Private businesses will be killed off and replaced by soulless high street chains, leading to more clone towns. The FPB implores our towns and cities to learn from London's outstandingly bad mistake. While cities like Edinburgh, Nottingham and Cardiff contemplate introducing similar schemes, small business concerns must not be arrogantly ignored. The message is clear; congestion charging is tantamount to sending a wrecking ball into your local small business community."

The survey reveals overwhelming hostility to Mayor Ken Livingstone's plans to increase the congestion charge from £5 to £8, with a massive 81.5 per cent opposed to the move, while 85.2 per cent said there are against extending the zone to cover West London.

The FPB is calling on Mr Livingstone to scrap the scheme with immediate effect.