London's small businesses suffer after bombings and C-Charge hike

A leading business pressure group is demanding that the London Mayor takes action to help small firms after a major survey revealed that profits, footfall and confidence levels have all fallen since the terror attacks and Congestion Charge price hike in July.

The Forum of Private Business's survey of 1,000 London-based small-to-medium sized firms shows that well over half, 58 per cent, have seen a slump in profits since the July bombings. Meanwhile, nearly two thirds report a drop in footfall of clients and customers following the terror attacks. A quarter of business owners admit to having thought of relocating their business as a result of the terror attacks.

The Congestion Charge, which was increased by 60 per cent from £5 to £8 three days before the July 7 attacks, has taken a further toll with two thirds of respondents saying the increase had had a negative impact. A third of bosses say they have thought of relocating since the Congestion Charge increase. A massive eight out of 10 bosses supported calls from the FPB for a six-month suspension of the Congestion Charge saying it would be beneficial to London businesses.

Furthermore, an overwhelming 73 per cent of business owners say they do not believe that London Mayor Ken Livingstone is doing enough to attract business and visitors back into Capital in the wake of the terror attacks.

Finally, two thirds of businesses say they are not confident of trading growth in London in the next six months.

The FPB's Chief Executive Nick Goulding said that, with the critical Christmas shopping period just weeks away, action is urgently needed to encourage visitors to London.

"Our members are telling us loud and clear that they are suffering because of the terror attacks and the Congestion Charge hike,' he said. "The next four months are the most important in the retail calendar and business needs Ken Livingstone's help. He has the power to suspend the Congestion Charge at least until the end of the January sales.

"This act would send out a compelling message to the public that London is open and eager for business. It would give the business community a vital injection of solidarity and support. "