According to the Freight Transport Association (FTA), ULEZ (London’s Ultra Low Emission Zone) introduced by the Mayor of London Sadiq Khan is going to damage the small business niche dramatically. Therefore, the FTA is pleading with the mayor to rethink the usability of the scheme.
What ULEZ Is and Why It May Destroy the Small Business Niche
Basically, it’s a fee every driver of a polluting vehicle will have to pay every day for the harm they bring to the quality of air. The fee is £12.50, and considering it must be paid daily, the sum of money to spend becomes rather intimidating for most small businesses.
Sadiq Khan planned to implement the scheme is 2020 but decided to move it forward to as soon as April 8th this year. This explains the panic, as many small firms aren’t prepared to spend that much money and, as the Federation of Small Businesses states, it may be devastating to numbers of companies.
The zone will be in action 24 hours a day, and the vehicles that exceed rather rough emission limitations will be forced to pay the fee. Transferring to eco-friendlier transportation is by far the most optimal way out, but not all the companies have enough resources for such a massive transition.
The FTA recognizes the importance of fighting pollution and improving the quality of air, but they also state that there might be no need for such strict measures. The further improvement will be limited and majorly paid by the small companies. And if enough of them go bankrupt, the whole niche might crumble. Although it might not seem as important at first, if you look deeper into the whole business space, you’ll see the importance of startups and tiny firms.
Vehicle manufacturing companies have been developing new technologies to make transport eco-friendly for years now. Their hard work has aided in the reduction of the key pollutants in the air over 20-fold.
London’s Mayor agreed to help the micro-companies (those employing less than 10 members of staff) prepare for the scheme by van scrappage proposals. This will help greatly, but slightly larger companies won’t get that much support, so the problem is still relevant.
The FTA is the only large institution that speaks to the government on behalf of the whole logistics niche. It’s crucial for the proper functionality of the manufacture, sales, and transportation of goods, which are the spheres employing about 7 million people.