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Press Release

FSB calls for congestion charge changes to safeguard jobs

17th February 2006

On the third anniversary of the introduction of the congestion charge in central London (February 17) the FSB called for the Mayor to alter the scheme to support economic growth in the capital.

The FSB believes that a permit scheme to exempt essential users from the charge should be introduced. As over 95% of companies are small businesses and rely on their vehicle to trade the £8 per day charge is seriously hampering their ability to grow and create more jobs. This scheme would differentiate between those that have to use their car and those that choose to do so.

Such a scheme would also reduce the costs on deliveries to small businesses that tend to be more dependent on their suppliers than large firms because small businesses cannot dictate terms in the same way that large companies can.

Steve Collie, FSB National Transport Spokesman, said:

“We understand what the Mayor of London is trying to achieve with the congestion charge. After all, congestion across the UK costs businesses £20 billion per year.

“Yet the current scheme is too blunt an instrument. It recognises no difference between essential and non-essential journeys. 54% of London firms in the congestion charge zone surveyed by the FSB are dissatisfied with the congestion charge, compared to only 10% that are satisfied with it. 40% say that the charge has had a negative effect on their company with less than 10% saying it has been beneficial.

“These figures show that the scheme must be changed to encourage economic growth. With some minor alterations, the congestion charge can achieve the aim of unclogging the heart of London without strangling the soul of the capital, its business community.”



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