Firms’ competitiveness hit by UK Road congestion reveals Yellow Pages survey - 22 January 2002
A third of small firms in the UK claim that road congestion now has a serious impact upon their business, leading to lost man-hours and increased costs. One in four believes it is damaging their competitiveness, according to the latest Small Business Watch survey by Yellow Pages.With road congestion estimated at costing British business up to £20 billion* a year, 76 per cent of firms now believe that re-investment in rail and other public transport systems is the best solution to encourage motorists to leave their cars at home and ease inner-city traffic congestion.
The Small Business Watch findings, developed from a poll of 1,500 small firms nationwide, reflect strong concerns over local government initiatives to reduce congestion and improve travel efficiency in the UK.
The survey indicates that nearly half of all companies believe that new workplace parking levies – a tax on workers who use company car parks – will be damaging, due to increased business costs from meeting new regulations. And a third of companies assert that new congestion charging zones – the payment of a daily toll to enter a city centre – could lead to increases in delivery costs, a drop in staff retention and business opportunities. Customers will also be less prepared to drive to business premises.
For those who transport goods to customers in the UK and Europe, 75 per cent say that roads are still the most important mode of transport for their business. But 62 per cent of firms surveyed believe that major upgrades of the nation’s roads are now necessary to combat the increased levels of traffic congestion.
It also reveals that inadequate rail and bus services currently mean that many company employees have no alternative but to drive to work. Only 16 per cent of respondents now use public transport to get to work and a mere four per cent use trains or buses for business travel.
With so many employees using cars for work, a fifth of the sample in London affected by congestion now suffer lost man-hours through staff lateness. And 21 per lose precious work time when employees are ‘on the road’ for business.
The findings show that many firms are, though, already introducing new working practices to combat transport problems. Of those firms frequently affected by road congestion, many have altered the timings (33 per cent) or the routes for deliveries (26 per cent). Whilst some have adopted staggered staff starting times (17 per cent) or conference calls and video-conferencing, rather than wasting time through travelling to meetings (seven per cent). Five per cent of respondents have even changed the location of their business to counteract road congestion problems.
John Condron, chief executive of Yell, publisher of Yellow Pages, said:“ The findings clearly demonstrate that road congestion is hitting business hard and damaging competitiveness. This is a serious matter and one that needs urgent action if small businesses are not to suffer permanent harm.”
Rachel Burns, senior transport adviser at the British Chambers of Commerce, said: “Transport is an issue which arouses much concern among Chamber’s business members. Firms experience at first hand the ill effects of under-investment in the UK’s transport infrastructure. Additional taxes on businesses such as the Workplace Parking Levy are not the solution to long term under investment. The workplace parking levy will do little to tackle congestion and risk damaging competitiveness even further.”
More than 30 local authorities are looking at urban congestion charge zones or workplace parking levies. However less than half of firms surveyed believe that such schemes will help improve inner-city traffic.
