Shops are C-charge losers

Fresh evidence that congestion charging has hit trade in London is revealed in a major survey today. Nine out of 10 retailers and more than seven in 10 firms in the entertainment sector say they have suffered because of the toll.

They claim the £5 charge has driven down the number of customers travelling into the centre and pushed up the costs of running a business.

The Royal Institution of Chartered Surveyors [RICS] said that one year after the launch of the scheme, the retail sector was the "big loser" - with businesses on or near the boundary suffering most.

Chief executive, Louis Armstrong, said: "RICS has supported the scheme from the start. It has worked very well, making the capital cleaner, quieter and much more navigable by road. But the full impact on the complex organism that is a city has yet to become clear."

Trade has been damaged by clients just outside the zone no longer wanting to travel in and pay the charge. "Although all retailers interviewed felt they were suffering adversely, those located around the zone boundary felt the impact most keenly," stated the RICS report.

It said office workers believed the charge had brought "significant benefits". Many businesses thought it was easier to travel in the capital and there was a "more comfortable environment" inside the congestion zone.

But the charge was the "final straw" for some retailers who were being forced to close or look for lower rents, having already seen trade fall as a result of the closure of the Central line, the Iraq war, stricter enforcement of parking rules and rising rents.

The report highlights confusion surrounding the operation of the charge. It said motorists were unsure of its hours and how to pay.

"People feel the whole process is difficult and strive to avoid it," claimed the report. "This even carries over to weekends when the charge is not operating. This may discourage people from visiting retailers, with the consequent impacts on their property."

According to the 15-page report - The Impact Of The Congestion Charge On Property - retailers have begun using the adverse effects of the toll as "ammunition" to win lower rental charges.

Transport for London, however, said its own study on the first year of congestion charging, which will be published tomorrow, would contradict many of the findings in the RICS report.

"It will show that concerns about retail have been completely misplaced," said a spokesman.

Former TfL director Derek Turner said the idea was to make motorists think hard before entering the zone and added: "Having to pay every day makes you think about your choice of transport."