Low Emission Zone set to cost smaller businesses
Vans or minibuses which are not compliant face charges of £100 per day. The FPB is concerned that smaller firms will be left with a costly bill for upgrading or replacing their current vehicles and that the introduction of the scheme has made their current vehicles virtually worthless. The FPB's Head of Member Services, Philip Moody, says there are serious concerns amongst companies that send larger vehicles into the capital. "For example, for some companies using HGVs, this will mean a cost of around £5,000 to upgrade their vehicles using the companies that have been approved by Transport for London (TfL). That is quite a cost - and even more when spread over a fleet." Malcolm Donnellan is a member of the FPB and a Director at Discount Builder Supplies in London. His company operates a fleet of 3 seven-and-a-half-tonne HGVs, which would cost him £60,000 to replace. He says the proposals will have far-reaching consequences. "Overnight, the Mayor has raised the standards for vehicle emissions. This will have a huge impact on my business. We may be able to cope with the extra cost, but others won't. How can it be fair that vehicles such as mine can be run across the country but not in London?" TfL says on its website that it will not be providing grants for firms wishing to upgrade, maintaining that: 'TfL considers that the provision of grants is a national Government issue rather than a London Government issue, and that any grant scheme should be run at the national level.' Victoria Carson, the FPB's Campaigns Manager, says there must be more support. "TfL will no doubt be happy to collect the charges incurred by companies even if it is not prepared to support them in meeting the new emissions levels. More must be done to encourage companies to take up these improvements rather than just hitting them in the pocket at every opportunity." TfL is encouraging companies to upgrade their vehicles to reduce emissions and make them compliant with the new standards that will come into force in 2008. Every company that upgrades its vehicles in this way and meets the standards set by the Vehicle Operator and Standards Agency (VOSA) will gain a Reduced Pollution Certificate (RPC), which entitles them to vehicle excise duty discounts. But the FPB believes it is far from clear just how much companies can save and where to find out more information. Mr Moody said he struggled when researching the issue. "Neither Her Majesty's Revenue Customs (HMRC) nor VOSA could tell me how much HGV operators could save by applying for an RPC. When I finally got through to the Driver and Vehicle Licensing Agency, which was engaged for the first half hour, I found that discounts vary from £5 for the smaller vehicles to £500 for the very largest. That is not an incentive for companies to spend thousands of pounds trying to meet the new emission levels." Mr Donnellan is also concerned about other costs to his company. "Our vehicles have been made virtually worthless by these plans. Who will now be willing to buy them?" The FPB believes that the financial consequences of inaction could be extremely serious for smaller companies and wants the Government to do more to encourage businesses to comply, rather than punishing them for non-compliance.