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SMEs hurt by low-emission zones

Published On 1 June 2007 at 12:22:54

The Forum of Private Business (FPB) has warned that a number of small businesses may be left with a costly bill after new proposals by London Mayor Ken Livingstone come into force.

Mayor Livingstone wants heavy goods vehicles, buses and coaches with diesel engines that are not compliant with low-emission levels to be charged £200 per day for using certain designated areas.

However, the FPB has expressed concern the financial burden of either paying the fee or replacing fleets of vehicles may prove too great for a number of the UK's smaller operators.

"For example, for some companies using HGVs, this will mean a cost of around £5,000 to upgrade their vehicles using the companies that have been approved by Transport for London," said Phillip Moody, the FPB's head of member services.

"That is quite a cost - and even more when spread over a fleet," he added.

Meanwhile, one business owner whose company operates a fleet of three seven-and-a-half-tonne HGVs said the fleet would cost him £60,000 to replace them.

"This will have a huge impact on my business. We may be able to cope with the extra cost, but others won't. How can it be fair that vehicles such as mine can be run across the country but not in London?" asked Malcolm Donnellan, director at Discount Builder Supplies.

The government has also introduced vehicle tax incentives for larger vehicle drivers in which they produce a valid reduced pollution certificate (RPC).

 

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