London firms urged to brace for fresh congestion-busting measures

London firms were today warned that a major overhaul of the capital's traffic congestion strategy will be required if it is to avoid EU fines for consistently breaching air quality standards.

Following his recent election victory, Mayor Boris Johnson scrapped plans for a new emissions-based congestion charge and also ordered a new consultation over the proposed westward extension of the zone.

However, last month the European Commission told the UK government that it would be liable to unlimited fines if it did not bring air pollution within levels legally required by EU air quality laws.

London has been breaching the legal limit for some three years, and a new EU air quality directive is expected to tighten laws even further, imposing limits on pollution levels in specific areas of the city in line with World Health Organisation guidelines.

The new directive will require the government to introduce a number of additional low-emissions zones in the capital, according to Simon Birkett, chair of the Campaign for Clean Air in London. "Dozens of cities in Europe are preparing for these laws by introducing additional low-emission zones in city centres and London should be doing the same thing," he said.

Low-emissions zones work in a similar way to the current congestion charge but, instead of charging all vehicles, would only impose charges on those vehicles that do not meet certain emissions standards. Currently, there is one large zone in operation in Central London for trucks and delivery vehicles that do not meet emissions standards.

However, any attempts to introduce fresh charges for high-emission vehicles are likely to face stiff opposition from some business groups. A CBI survey last month found that, while they are broadly supportive of the government's environmental agenda, the majority of London businesses are not convinced by the scheme.

"Overall around a quarter to one third say they don't know whether these measures will help," said the CBI report. "The new Mayor will need to review the initiatives and policies to ensure they are fit for purpose."

A spokeswoman for the Federation of Small Businesses (FSB) said that any further low-emissions zones should not target businesses alone. "The current zone only taxes lorries, which are a minor part of the pollution problem in central London," she said. "Our view is that the environmental savings are not proportional to the cost to businesses, and we would be concerned that this would be the case with any extensions to the zone. "

The FSB said it was aware of one business that has ceased trading because it could not afford to pay central London emissions charges, and another company which has already spent £60,000 upgrading its fleet in order to avoid the charges.

City Hall currently has no further plans to introduce more low-emissions zones, and mayor Boris Johnson has already threatened to abandon several measures that have improved air quality, including the western extension of the congestion charge and twice-yearly taxi checks.

The mayor's executive independence could also make it difficult for the government to introduce the necessary measures in time, especially as it is the government's coffers, not City Hall's, that would be hit by any EU-imposed fines.