Fresh produce distributors who deliver within the congestion charge zone in London, as well as their retail and foodservice customers, will be dismayed to hear that mayor Ken Livingstone has announced the charge is rising from £5 to £8.
The increase will apply from July 4. Charges for fleet vehicles will rise to £7.
The mayor said up to £45m will be raised which will help cut traffic levels and improve public transport.
The London Retail Consortium led the protests at the mayor's announcement.
A spokesman for the LRC said: “Despite overwhelming opposition to this, the mayor has ignored the voice of business. Increasing the charge has little to do with reducing congestion, and more to do with trying to make the weak business case for a Western Extension financially viable. The current scheme has already surpassed the congestion reduction target set out at its inception; so further reductions are unwarranted.
“A 60 per cent increase is far in excess of the bus and tube fare rises announced in September. There must be real incentives to use public transport, rather than costly deterrents from driving, as all retail is dependent on locations with good accessibility and connectivity with their customers.
“The objectives and benefits of the price increase are not clear enough to justify the extra financial burden on retailers in London. Retailers deserve to see a return on their investment, through the taxes, business rates and the many additional positive investments and contributions they make, that help position London as a premium world shopping destination. Potential future costs, such as a Crossrail supplementary business rate levy will have a tremendous impact on the cost base of business.
“An increase to the congestion charge could tip this delicate cost balance and will adversely affect the vitality and viability of shops through reduced trade and the removal of consumer choice.”
Tory London Assembly member Angie Bray branded the move, which has been expected for some time, a "serious blow" to city businesses.
The Greater London Authority said that the charge has reduced congestion in central London by 30 per cent since its introduction in February 2003, with 70,000 fewer vehicles entering the zone a day.
Livingstone has also been quoted as saying 90 per cent of people travelling into the charging area use public transport.
Those paying on a monthly basis will get three charge-free days and those paying yearly will get 40 charge-free days.
Bray accused Livingstone of raising the costs to road users in order to fund the system. "The revenue levels of the current charge have been so disappointing as it's a very expensive system to run," she said.
"This is a serious blow to many of London's businesses who are already in pain with the current charge level of £5. I suspect they are going to be in agony when it goes to £8."
Lynne Featherstone, Liberal Democrat London transport spokesperson, said: "Traffic levels in central London are still falling, yet our Labour mayor slams a 60 per cent hike on congestion charges.”
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