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More Bad News for Businesses as Travel Costs Rise
Listed under: News
Published: Tuesday, October 20, 2009
Retailers are to face even greater pressure over the next year, as an increase in business rates, continuing postal strikes and a rise in the price of travel make the cost of running a small enterprise even higher.
As well as changing the current cost of the congestion charge from £8 per day to £9 for those paying by a new automated account system and £10 for those using existing methods, the Mayor, Boris Johnson, will also be increasing tube and bus fares by 3.9% and 12.7% respectively.
Commenting on his reasons for the price rise, Mr Johnson says, "Nobody wants to make an announcement like this, especially when Londoners are feeling the effects of the recession, and it is not a decision I have taken lightly.
He explains, “The mistakes of the past and the current economic climate have conspired to present us with a huge challenge. The crucial thing is that we safeguard the investment in our city's future, and that's why I'm asking Londoners to accept this difficult decision."
However, Dr Helen Hill, director of policy at the London Chamber of Commerce and Industry (LCCI), has expressed concerns about the measure. “While we are pleased that the C-charge will be more user friendly, London’s firms could still do without this latest rise. It will mean less money in businesses’ bank accounts and fewer customers in the capital’s shops. Rather than increasing the cost of driving in to the congestion zone, the Mayor should first address the damaging effect it has on business and the lack of flexibility in the system.
“On the back of bad news about business rate rises and continuing postal strikes, there is little respite for the business community with the Mayor raising tube and bus fares as well. This will place even more financial pressure on London's businesses and their employees as we try and make the jump from recession to recovery,” she concludes.
As well as changing the current cost of the congestion charge from £8 per day to £9 for those paying by a new automated account system and £10 for those using existing methods, the Mayor, Boris Johnson, will also be increasing tube and bus fares by 3.9% and 12.7% respectively.
Commenting on his reasons for the price rise, Mr Johnson says, "Nobody wants to make an announcement like this, especially when Londoners are feeling the effects of the recession, and it is not a decision I have taken lightly.
He explains, “The mistakes of the past and the current economic climate have conspired to present us with a huge challenge. The crucial thing is that we safeguard the investment in our city's future, and that's why I'm asking Londoners to accept this difficult decision."
However, Dr Helen Hill, director of policy at the London Chamber of Commerce and Industry (LCCI), has expressed concerns about the measure. “While we are pleased that the C-charge will be more user friendly, London’s firms could still do without this latest rise. It will mean less money in businesses’ bank accounts and fewer customers in the capital’s shops. Rather than increasing the cost of driving in to the congestion zone, the Mayor should first address the damaging effect it has on business and the lack of flexibility in the system.
“On the back of bad news about business rate rises and continuing postal strikes, there is little respite for the business community with the Mayor raising tube and bus fares as well. This will place even more financial pressure on London's businesses and their employees as we try and make the jump from recession to recovery,” she concludes.
