Companies criticise C-charge

The extent to which trade in London has been damaged by the congestion charge is revealed in a new survey.

The Forum of Private Business found that for a quarter of firms, profits have slumped by up to 30 per cent; more than half reported falls of up to 15 per cent.

Just under a third say they have considered relocating. Nearly seven in 10 firms said they have also suffered a drop in customers.

More than eight in 10 oppose Ken Livingstone's intention to raise the charge to £8. Eighty-five per cent are against his plans to extend the charging zone to cover additional parts of west London.

Nick Goulding, chief executive of the forum, said he has written to Mr Livingstone warning that small firms are being crippled.

"Our members are telling us loud and clear that congestion charging is having a devastating effect on trade. Any increase in the charge or extension to the zone will only increase that pain."

Mr Goulding said many small firms in the charging zone would go under or be forced to shed jobs if the charge increased. "While huge companies like John Lewis can absorb that loss, small firms operating on far tighter profit margins simply cannot. We urge Mr Livingstone to scrap the scheme altogether."

This year the John Lewis Partnership said sales at its Oxford Street branch had fallen nine per cent since the levy began. Marks& Spencer said the charge is a contributing factor to a "drop in footfall" and in February, shops and restaurants in Oxford Street claimed they were ?100 million down. A London Chamber of Commerce survey in July said almost eight in 10 restaurants had lost trade, with one in five considering closing. And health trusts warn that if the zone expands, staff recruitment and retention will be hit. However, Transport for London said other factors have had "a far greater effect".

A spokesman said: "TfL's business surveys show companies blamed the general economic downturn and a reduction in tourism as the main cause of their drop in profits. Despite concerns over the effect of the charge on business, to date these claims have not been accepted."