Many are already suffering because of congestion charging. Big businesses can easily absorb the additional costs incurred, but smaller firms have been left to struggle. 

The FPB, which wrote to the Mayor of London, Ken Livingstone, in response to the consultation on emissions-related congestion charges, welcomes moves to tackle climate change and reduce London's CO2 emissions, but believes that the consequences for smaller firms have been overlooked. 

Smaller businesses face having to increase prices in line with their costs, such as upgrading to more environmentally-friendly vehicles, which will allow businesses in other regions that are not affected by the charges, and bigger firms within the emissions-related congestion charging zone, to gain a competitive advantage. 

"Of course the FPB agrees that it is vital to tackle pollution," said the FPB's Campaigns Manager, Matt Hardman. "However, a key finding of the independent review into Mr Livingstone's proposals, carried out by the Centre for Economics and Business Research Ltd (CEBR), is that the changes are likely to lead to increased traffic volumes and even worse congestion. Taken along with the extra costs, this move could have unforeseen consequences for many smaller businesses." 

The FPB is also concerned that London's congestion charging policy could spread to other areas of the UK, further affecting members in places like Manchester, where the Association of Greater Manchester Authorities has recently tabled a £3 billion bid to introduce a similar scheme. Last month, Transport Secretary Ruth Kelly told the FPB that the Government has ‘no current commitment' to introducing congestion charging across the UK, but refused to rule them out in the future. 

Last year, a snapshot survey of the FPB's members based in London revealed that 90% of respondents believed congestion charges were harming their businesses, with the majority reporting a drop in profits as a result. 

Bespoke shoemaker, James Taylor and Son, is located on the edge of the congestion charging zone in London. Its Managing Director, Peter Schweiger, has experienced the positive and negative effects of the policy. 

"I can sit with the shop door open during the summer and still hear my customers speaking," he said. "However, as the number of cars passing by has decreased as a result of the charge, we've had a reduced number of customers. The number of people coming here to have their shoes specially made to measure has not gone down, but there are certainly fewer coming in to have their shoes repaired."