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Home > Congestion Charge revenue wasted
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1 May 2007  
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The FPB believes that money raised by the Congestion Charge has been wasted by Transport for London (TfL) on white elephant schemes. The FPB has written to Mayor Ken Livingstone asking him to substantiate claims that money has been wisely invested in "measures to improve goods vehicles deliveries".

The claim was made by TfL in a pamphlet entitled ‘The proposed western extension of the Congestion Charging Zone', which was circulated by TfL in 2006.  

John Exley of Wicker Fisheries Ltd, a member of the FPB, wrote to TfL in December 2006 to ask for detailed information to support these claims. He eventually received information (dated 26 February 2007) detailing TfL's freight division spend for the year 2004-5.  

Mr Exley said he was completely bemused by the response. 

"Of the 12 points highlighted in the information, few have any relevance to those firms delivering goods by the roads through the congestion charging zone. Most of the points allude to research, pilot schemes and assessments." 

Amongst some of the more imaginatively-titled schemes in the information supplied by TfL to support its claims were: 

  • A one-stop-shop pilot and market research
  • 2 delivery curfew initiatives
  • Investment in waterborne freight
  • A hybrid van pilot
  • A driving simulator feasibility study
  • A Construction Material Consolidation Centre Study Seminar sponsorship.
      
Mr Exley replied on 6 March 2007, asking why this information should support the claim, but is yet to receive a response, prompting a letter from the FPB to London Mayor Ken Livingstone. Chief Executive of the FPB, Nick Goulding, wants to know how the money that has been taken from delivery firms in the capital has created any improvement in their deliveries. 

"Our members see no evidence of improved goods vehicles deliveries in any way; only higher costs and tighter profit margins. Can Mr Livingstone explain to us what measures have been introduced, other than expensive and ineffective research projects?"  

"If we are to believe that these projects were not white elephants," Mr Goulding continued, "then Mr Livingstone must explain what the improvements are because only Transport for London seem to know about them." 

Whatever mystery benefits the measures were intended to deliver, they do not appear to be having the desired effects if the FPB's research is to be believed. In 2005, a survey by the FPB regarding the impact of the Congestion Charge revealed that:  

  • Over a third of respondents had thought of relocating their business.
  • Nearly two-thirds had seen a drop in profits since the introduction of the charge.

In 2006, another survey by the FPB found that:

  • Over 70% of respondents had seen a drop in their profits
  • Nearly 90% of respondents said the increase in the Congestion Charge was having a negative impact on their business.

Meanwhile, the Mayor of London's own website has statistics on freight, stating that: "In 2004, 150 million tonnes of road freight had its origin or destination in Greater London, 22 per cent more than in 2000."



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