Taking charge; of business.(economic influence of congestion charging)

It's in London and will soon be coming to a street near many of you. Marion Mathews looks at the effect of congestion charging on the beauty business

Whether it's a small salon, luxury spa or distribution service, London's new congestion charging is having an effect on trade. Put in place on February 17th this year, the scheme aims to reduce traffic within the zone by 10 to 15 per cent, easing congestion and raising revenue from its [pounds sterling]5 charge on vehicles entering a central area that takes in London's City and West End.

The jury is still out on the effect the [pounds sterling]5 congestion charge will have on London's economy and the true picture was originally blurred by simultaneous problems of London's Central tube line closure, fear of terrorist attacks, competition and the general economic downturn. But a survey by the London Chamber of Commerce among 400 large and small businesses across the congestion charge zone, reported in the London Evening Standard, indicated that 74 per cent of firms claim takings were down in the first month by between 10 and 15 per cent and a large majority considered this was either "all" or "mostly" owing to the congestion charge.

Knock-on effect

So, how has London's beauty industry been affected - salons, spas and suppliers?

Guinot account executive Lisa Padmore, whose job takes her into the zone's centre, says that, in Mayfair, the charge has not affected business too much since salon clients are mostly residents or people who work in the area. "There has been a little falling off and some change in the pattern of treatments. If clients from outside the zone are coming in less frequently, they are staying longer at the salon and having more treatments. Salons are adapting and offering package deals - combining a facial and body treatment, say - to meet this challenge.

"I have to use a car to travel around because I have products and equipment that may be needed. So I plan my journeys to ensure I'm not dodging in and out of the charging zone. Once inside, I stay, visiting as many salons in the area that I can fit in," Lisa explains.