Extended C-charge 'killing small shops'

The extension of the congestion charge into west London has had a devastating effect on small shop owners, a survey reveals.

More than half of traders in the newest part of the zone complained the scheme had hit business, according to the poll of 300 stores.

Two per cent said it had had a positive effect, with five per cent of shopkeepers in the original central zone agreeing.

The London Chamber of Commerce survey, carried out to mark the first anniversary of the expansion of the charging zone, showed small shops were suffering worst of all.

Across both the central and western zones, independent traders were more likely to have considered relocating, selling up or closing down compared with larger chain stores.

They were also more likely to have been hit by higher charges demanded by suppliers and distributors.

Today, the chamber called on Mayor Ken Livingstone to "throw a vital lifeline" to small firms by ending the C-charge at 1pm on working days.

It said this would help businesses such as restaurants and theatres but still determotorists from driving into central London during the morning rush hour.

The chamber called for more chargefree periods at key times of the year in order to boost trade and for the toll to be suspended during the last full week before Christmas. The charge is usually lifted over the Christmas and New Year holiday.

Businesses also want Transport for London to pay for "ongoing independent monitoring" of the charging scheme, leading to an annual report.

Colin Stanbridge, the chamber's chief executive, said: "This survey clearly demonstrates the westward extension has had a negative impact on retailers in the zone, affecting takings, customer numbers, profitability and even retail employment.

"Independent retailers were more than twice as likely to have been negatively affected by the C-charge compared with chain stores. Almost a quarter of small shops said their delivery costs had increased, compared with just seven per cent of multiples."

Other findings were:

More than half (53 per cent) of retailers in the western extension zone said their customer numbers had fallen over the year.

Forty-two per cent said takings were down and 43 per cent recorded a fall in profits.

Only three per cent reported a rise in customer numbers.

One in five stores said their delivery costs had gone up, with almost a third (29 per cent) reporting increases of between six and 10 per cent.

Fourteen businesses said they had either reduced staff numbers or scaled back recruitment.

One in 20 had considered selling their business, four per cent had thought of closing down and seven per cent were tempted to relocate.

In the central zone, half of retailers reported a fall in takings and profits but Mr Stanbridge said: "There is also evidence the extension has had a positive effect on central London businesses at the expense of those in the extended zone."

Norman Waidhofer, owner of Andrews Pharmacy in Sloane Street, told researchers: "Those who came to avoid the central zone [now] have to pay regardless and have indicated they may as well go back to the West End." Anna Noble, owner of Skin in Kensington, said: "Customers who drive in now don't think twice about going into the central zone, which has become just as busy, if not more, than it was."

A TfL spokesman said: "The congestion charge has not damaged smaller retailers. Retail sales in central London increased by 11.6 per cent in 2006, almost 10 times more than the rest of the UK."

He said a 1pm cut-offwould "produce gridlock every evening" and suspending the toll in the week before Christmas would make the heavy congestion then even worse.

BUSINESSES LOSE CUSTOM AS COSTS SOAR... ONE IS FORCED TO CLOSE

Andrews Pharmacy, Sloane Street, Norman Waidhofer, proprietor

"Footfall is down five to 10 per cent. Regulars who live just outside the zone are now more hesitant to come into the zone and those who came to avoid the central zone have to pay regardless and have indicated that they may as well go back to the West End, with bigger stores and more range."

Skandium (homewares), Marylebone, Chrystina Schmidt, director

"The C-charge looks wonderful on paper but is devastating in reality - chain stores can absorb the costs but small businesses are stranded. The community is being destroyed."

Mijola Daniel (jewellery), King's Road, Bola Ogundipe, proprietor

"There are so many business pressures we can't control - terrorism, poor weather, flooding, economic downturn - why introduce another one?"

Marlin (menswear), Westbourne Grove, Martin Lee, proprietor

"If there is dispensation for residents there should be dispensation for business owners and workers who spend just as much time, if not more, in the area. We are unfairly penalised. There should be some sort of compensation."

Anta (fashion and homewares), closed its Sloane Square branch last August, Stephanie Sabine, shop manager

"Sales were down 25 per cent since February last year due to the congestion charge and customer parking costs. Costs for delivery also rose - to get vans to come in to pick things up we had to pay more. With the increase in postal and telephone orders, we lost extra spontaneous purchases and this affected takings."

The Linen Cupboard, Piccadilly, Mr G Green, proprietor

"The amount of shoppers in central London has dropped dramatically. It's now three quarters empty. I've been here for 38 years and am established, otherwise I would move. The cost of merchandise has dropped but because of extra charges we have not been able to reduce our prices."