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Congestion zones 'could impact' SMEs

Published On 14 March 2007 at 13:56:21

Proposed congestion zones in towns and cities across the UK could have a negative impact on small businesses in the area, according to new research.

A study conducted by the RAC Foundation and the British Retail Consortium found that people would choose to utilise shops and services in areas further afield in order to avoid incurring a charge of £5.

More than 30 per cent of motorists said they would try to avoid having to go into congestion-charge zones, while just over 20 per cent said they would cut down on the amount of journeys they make into towns.

"Minor changes such as parking controls or major changes such as congestion charging can ruin retail if not well planned," executive director of the RAC Edmund King said.

"Cars are the shopping trolley of convenience but motorists will vote with their wheels if too many restrictions are brought in."

Schemes similar to that currently in operation in central and west London are under consideration for a number of the UK's other cities, including Manchester.

Prior to the extension of the London zone in February of this year, the chief executive of the Forum of Private Business Nick Goulding condemned the effect such charges have on local companies.

"The congestion charge has been a millstone round the neck of small business owners," he said, adding that any extensions would result in "disaster" for SMEs located within the zones.

 

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