Transport for London has proposed changes to the central London Congestion Charge.
Since its implementation in 2003, TfL has made changes to the Congestion Charge to ensure it remains effective, including changes to discounts and exemptions, charge level and days/times of operation. Last year temporary changes to the charge were made in response to the transport challenges presented by the pandemic, including operating daily until 22:00.
New proposals
The proposals from Transport for London are:
- A daily charge of £15
- Reducing the hours of operation from 07:00 to 22:00 each day, to between 07:00-18:00 Monday to Friday and between 12:00-18:00 at weekends and on Bank holidays
- There would be no charge between Christmas and New Year
- A discount of 90% for residents living in the Congestion Charge zone
- A pay next day charge of £17.50, and the deadline for making a delayed payment is three days after the day of travel
- No discount for payments made by Auto Pay or Fleet Auto Pay
- Retain reimbursement arrangements which would apply in exceptional circumstance
The FSB has responded to these proposals as follows:
- By keeping the Congestion Charge at a daily charge of £15 will penalise small businesses and hinder their recovery after a very difficult 18 months trying now to survive following the easing of Covid restrictions.
- Small businesses are the ‘heartbeat of London’ and they are an essential component to the economic recovery of the capital. They need to feel listened to and supported; not to have their fragile stability rocked by more increases in transport related costs.
- The ‘FSB London Infrastructure Policy Report’ published in February 2021 revealed that 31% of small businesses have been negatively affected by the changes to the London Congestion Charge increase from £11.50 to £15. It further highlighted that the current road charging schemes are clearly an additional running cost burden on small businesses with many not able to absorb these costs. Some are looking to charge customers in the charging zones a premium for their business services. Some try to avoid the congestion charging areas resulting in moving the congestion elsewhere and increasing travel times.
- The move to support the night-time economy by removing the Congestion Charge in the evening is welcome, however, for many small businesses who carry out activities in the day on the weekends, having a permanent £15 charge between 12pm to 6pm on weekends will be another bitter pill to swallow.
- We ask for weekend exemptions be given to specific business owners:
- Market traders (who will incur two extra weekend charges and who will enter zones at dawn and yet leave in the early hours of the afternoon);
- Construction related businesses (which can be verified by a central London local Council who will only be allowed to operate until 13:00 on the weekend and yet incur the full cost).
We feel there is capacity for TfL to work with local authorities on a local business weekend exemption scheme to demonstrate that London is open for business.
Considering the points listed, FSB London does not support the new Congestion Charge proposals. Instead, FSB London asks that the London Congestion Charge is reduced back to £11.50 with immediate effect.