Fury over plan to increase London's congestion charge

The industry has reacted with anger and dismay at the mayor of London's proposals to raise the congestion charge to £8 next summer.

Mayor Ken Livingstone announced last week that - despite promises to the contrary - he would be asking Transport for London to consult on raising the charge from £5 to £8 for private cars and £7 for "commercial fleet vehicles", including delivery lorries. The earliest the increase could come into effect would be July 2005.

Martin Couchman, deputy chief executive of the British Hospitality Association, said: "It's a big disappointment. We would oppose any increase at this stage. This proposal is certainly not what we were led to believe by the mayor, even a few months ago. It's too early to increase the charge by such a big amount, and we will be making our views known during the consultation."

He added that the mayor's other plans to extend the zone would have an impact on the restaurant business in west London and on people travelling across the city for lunch or dinner.

"We are currently not happy about either of these proposals, as they will have a big impact on restaurant business," said Couchman.

Marcello Riccitelli, supervisor at London supplier Continental Fruit Stores, was outraged at the proposals: "It's disgusting. They think we're digging money from the ground. It is simply unbelievable."

He said his was a small business with five employees and three vans, which were costing £15 a day in congestion charges. "At the end of the week it's all extra money we need to find to keep the business running. It just makes it more and more difficult."

Richard Shepherd, owner of Langan's Brasserie, feared that it would cause the centre of London to lose out to outer-London shopping centres.

"London is one of the major cities in the world, and we are always trying to promote tourism by having the best restaurants and great shopping, amongst other attractions. London is the only city in the world where we have a mayor trying to keep people out. Where's the logic in that?"

He added that increased congestion charges would only make business tougher in central London, whereas it could benefit outer-London sites such as Bluewater and Lakeside with their catering outlets, shopping and free parking.

Livingstone said the increase would generate an additional £50m, which he argued would be invested to further reduce congestion in the capital.

Source: Caterer & Hotelkeeper magazine, 9 December 2004