Congestion charging

Thursday 17th February 2005 at 12:12 AM

On the second anniversary of the congestion charge we asked key stakeholders their opinions of how it has faired so far and the implications for the future.

Mayor of London Response

The Mayor Ken Livingstone said: "Two years on and the congestion charge continues to be a success and prove the cynics wrong. Congestion in the zone is down by 30 per cent, bus services are improved and pollution has been cut. London's West End is doing well, with figures from the Society of London Theatre showing that theatres took their best ever revenue in 2004 and achieved their second best audience numbers since records began in the 1980s.

 

"After years of chronic congestion, central London is moving again. The scheme is clearly working and the majority of Londoners now support it."

 

Party Response: Conservative

 

Tim Yeo shadow transport secretary, said: "Blair’s government pledged to reduce congestion by five per cent by 2010 but this was all talk.  Instead, congestion on our roads has continued to rise while they wage a war on the motorist.

 

"Ken Livingstone’s congestion charge is hitting London businesses hard and his plan to increase the charge will be yet another tax burden on those who still travel in London by car."

 

Party Response: Liberal Democrat

 

Lynne Featherstone Liberal Democrat transport spokesperson, said: "London has just celebrated the two-year anniversary of the Congestion Charge and it certainly has been successful in reducing gridlock. However, we can only give it two and a half cheers as there is still room for improvement. For example the fact that one third of all C-charge revenue is made up of fines for non-payment; that Capita, the company administering the charge is still missing 21 per cent of their targets; and that there is still little concrete evidence on the effects that the charge has had on business, shows there is still a lot to do.

 

"Yet, the next step the Mayor is embarking on is an extension westwards into Kensington & Chelsea. While continuing to support the existing zone, the Lib Dems are opposed to this expansion.

 

"By expanding the zone to encompass areas that have a far higher density of residential housing, there will be far more people entitled to the 90 per cent discount. This means that people who would previously have been put off driving into the zone, will now drive in without incurring extra costs – thus increasing congestion."

 

Stakeholder Response: Institute of Directors

 

Geraint Day, head of transport policy at the IoD said: "One thing is clear, TfL must ensure that any decision on a possible extension of the charging zone takes account of sound economic estimates of the likely effect on businesses in the existing and proposed areas.

 

"Another factor that some may not remember is that one reason the scheme was supported in the first place was that monies collected would be additional and be used to fund new transport projects.  In the current public sector funding regime it is important that all the authorities involved bear that in mind."

 

Stakeholder Response: London Retail Consortium

 

Alastair McKay, chairman of the London Retail Consortium said:  "The LRC is concerned about congestion in London and recognises that there are many benefits from reducing current levels and in promoting a cleaner, greener environment in the Capital. However, we believe there is clearly a need for further independent and authoritative research into the true impact the charge is having on retailers large and small within the congestion charging zone.

 

"Congestion charging exacerbates the problems that already exist in delivering to and servicing shops. This serves only to burden retailers with additional operational costs and at a time when the trading environment is already tough and uncertain for many.

 

"We oppose any price increase or extension to the congestion charge zone without a longer trial period to develop a clearer picture of the effect the charge is having on the Capital - any move to expand a scheme with unknown consequences is premature at best."

 

Stakeholder Response: Forum of Private Business (FPB)

 

Nick Goulding FPB's chief executive said: "FPB research has shown the quite devastating impact the congestion charge is having on smaller business.

 

"Where big businesses like John Lewis and McDonalds can absorb a drop in profits with ease, smaller firms operating on far tighter profit margins cannot. The congestion charge is hurting FPB members and plans to increase the toll and extend the zone are deeply worrying. The FPB is determined to give hard working firms a voice – smaller businesses must not be ridden rough-shod over by the congestion charge."

 

Stakeholder Response: Transport for London

 

Michèle Dix, director of the Congestion Charge, said:"The scheme's detractors predicted chaos and confusion, and that London would be turned into a ghost town. Two years on and the reality is that congestion has been cut, buses are quicker and far more reliable, businesses are doing well, more people are entering the  zone, and London is a far nicer place to work, live and visit."

 

Stakeholder Response: Construction Products Association

 

Jean Emblin, external affairs director, Construction Products Association said: "An extension to the congestion charging zone will add additional costs to suppliers already negatively affected by the cost of supplying to the current geographic zone.

 

"We undertook a survey of contractors, manufacturers and suppliers of construction products in 2003. The survey indicated that only 10 per cent of those surveyed believed that the charge should be extended to cover a wider geographical area, whilst 75 per cent did not believe that that the idea should be extended to other cities in the country.

 

"The results showed that an overwhelming 85 per cent of respondents believed that commercial delivery vehicles servicing London's congestion charging zone should be exempt from the charge. 80 per cent of product manufacturers and suppliers have said that the charge has affected the cost of supplying products within the CCZ, a fact noted by 83 per cent of contractors receiving such products, with almost 50 per cent of contractors and suppliers passing the increased cost on to their clients."

 

 

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