Increasing the London Congestion Charge would run up millions in extra costs for retailers, experts have warned.
London mayor Ken Livingstone said last week it was likely that the £8 charge for entering the congestion zone in central London would rise to £10 in 2008.
A spokesman for the Forum of Private Business said increasing the charge would have a damaging impact on retailers. He added: &aquot;This is just another tax on retailers. The government is hitting them to pay for its own inefficiencies at local and national level.&aquot;
Geoff Dossetter of
the Freight Transport Association added: &aquot;Any hike would increase costs to customers. Administration alone would add millions in costs for the industry.&aquot;
A spokesman for the London Retail Consortium said: &aquot;It is clear that no economic impact analysis has been undertaken to look at the effect that such an increase in the Congestion Charge would have on London retailers.&aquot;