Reports:

The impact of congestion charging on specified economic sectors and workers

5: Market Traders Analysis

5.1 Introduction

The evaluation of the impact of the scheme on London's market trade is based on desk research and discussions with representative bodies, such as the local authorities or private operators, rather than the actual traders.

This element of the study includes:

• An estimate of the number of market traders operating in and around the congestion charging zone;
• An estimate of the number of pitches occupied before and after the introduction of the congestion charge; and
• Identification of any changes in trading patterns.

5.2 Background

Retail markets
Traditional retail markets provide an alternative to the mainstream retail environment, particularly in terms of cost, and in some parts of London markets have become tourist attractions. The market traders can be perceived as small to medium sized self-contained businesses and to offer a quick method of establishing a living in retail.

Markets consist of regular and casual traders. Casual traders are often required to attend regularly before a stall is allocated and this could involve queuing in the morning. Other conditions also apply such as the line of goods intended for trade, before consideration is given for a casual trader to become a regular trader. However, most Local Authorities have a letting system in place (Source: www.nmtf.co.uk).

Wholesale markets
Wholesale markets generally sell bulk products to shops and businesses. Only Smithfield Market was identified as being within the congestion charging zone - the market is privately operated.

5.3 Market traders operating in and around the congestion charging zone

Figure 1a shows the boundary of the congestion charge zone.

The Councils within the CC zone are:

• Camden Council;
• Westminster City Council;
• City of London;
• Lambeth Council;
• Southwark Council;
• Islington Council;
• Hackney Council; and
• Tower Hamlets Council.

The London Borough of Westminster forms the largest part of the zone. The London Borough of Hackney and the London Borough of Tower Hamlets form minor parts of the zone, whilst the remaining Boroughs are fairly evenly divided.

Private operators within the boundary are:

• Corporation of London;
• Sherman & Waterman Associates;
• Covent Garden Market Management; and
• St James's Church.

Research was carried out from the National Market Traders Federation (NMTF) database. It estimates that the markets within the CC zone are:

• Bermondsey Antiques (New Caledonian);
• Berwick Street;
• Borough Market;
• Covent Garden;
• Earlham Street;
• Elephant and Castle;
• Exmouth Market;
• Goodge Place;
• Lambeth Walk;
• Leather Lane;
• Petticoat Lane;
• Rupert Street;
• Smithfield;
• Strutton Street;
• Tower Bridge Road;
• Waterloo; and
• Whitecross Street.

5.4 Market pitches

This section includes an description of the markets within each Borough. The information was complied from Borough websites and discussion with Borough Officers including Market Inspectors and Market Operation Managers. Discussion also took place with Private Operators. There are approximately 1810 pitches available within the congestion charging zone; however, there is spare capacity at many of the sites.

London Borough of Camden

Within the Borough there are a number of designated street markets, which are:

Market	CC Zone	Number of Pitches	Number of Occupied Pitches	Type of Trade	Day	Time
Leather Lane	Yes	141	118	General Retail (Mainly Clothes)	Mon-Fri	10.00-14.30
Earlham Street	Yes	22	22	General Retail	Mon-Sat	09.00-19.00
Goodge Place	Yes	5	3	General Retail	Mon-Sat	09.00-18.00
Queens Crescent	No	77	60	General Retail	Thu-Sat	09.00-16.00
Chalton Street Market	No	36	31	General Retail	Fri	10.00-16.00
Plender Street	No	11	6	General Retail	Mon-Sat	09.00-17.00
Inverness Street	No	33	21	General Retail	Mon-Sat

Generally the markets have shown a decline through 2002 in the number of pitches that are occupied. The exception is Earlham Street, which shows full occupancy, and Goodge Place, which has shown no change. The number of pitches occupied at Leather Lane, Queens Crescent, Chalton Street and Plender Street markets has reduced in 2002. This reduction in occupancy may be due more to economic factors than as a result of the congestion charge as Queens Crescent, Chalton Street and Plender Street are all outside of the zone.

Subtle impacts have occurred such as the Borough has lost a few casual traders because the traders were not prepared to pay the congestion charge together with the fees for hiring a pitch. In addition to the above markets the Borough has 44 individual sites that are within the congestion charge zone. At these sites there has been a marked impact on the traders, who have left and since then have been replaced by new traders but who subsequently have also left. The Council has estimated a net loss of at least six traders within the zone. However, there has been no increase in the number of casual applications for markets outside the zone.

Camden Council has received a number of calls from concerned traders, both inside the zone and just outside the zone, regarding the reduced number of customers at the markets. This has had an impact on the trader's in terms of lost revenue. As yet the Borough is unable to measure the 'true' nature of the impact of the congestion charge because the scheme is still in its early stages.

Other markets within the Borough but privately operated are:

• Camden Lock Market;
• Camden Buck Street Market;
• Camden Stables Market; and
Camden Canal Market.

Note: These markets fall outside the congestion charge zone but the operators have not noticed an increase in the number of casual applications. The congestion charge has made no difference to these privately operated markets.

Westminster City Council

Westminster City Council has a number of individual sites around the city. The main markets are:

Market	CC Zone	Number of Pitches	Type of Trade
Bell Street	No	4	General Retail
Berwick Street	Yes	15-20	General Retail
Church Street	No	250	General Retail
Rupert Street	Yes	15-20	General Retail
Strutton Street	Yes	23	General Retail
Tachbrook Street	No	30	General Retail

The Church Street Market is Westminster's largest market and the Strutton Street Market, although smaller in size, is often very busy during the week.

The markets operated by the Council are general retail. However, certain markets tend to specialise in one type of trade, for example Berwick Street market has more fruit and vegetable traders and Rupert Street market tends to be mainly clothing. The applications are open and not binding to a specific trade but have followed the trend of other traders.

Generally, the Council, in its capacity as the licensing authority, has not noticed a difference in trading patterns with the introduction of the congestion charge. They report that Church Street market has received an increase in casual applications, approximately 40 applications on one occasion, most of these were Eastern Europeans categorised as asylum seekers or refugees. They consider that the increase in casual applications could be due to the perception that licensed street trading may be a quick method of earning a living.

Applications from regular traders have remained constant. According to the Council, there have been reported cancellations, but these are understood to be a general feature of street trading and not necessarily the consequence of the congestion charge. In comparison, street trading was more impacted by September 11th and the decrease in tourists than the congestion charge (Section 2.5). The Council has not received any complaints from the traders regarding the congestion charge but this could be due to the fact the scheme is still in its early stages or the market service provider is yet not fully aware of the local 'feeling' among the street traders.

City of London

The markets in the City are operated by private operators.

Covent Garden
Covent Garden has a variety of stalls on different days:

• Monday - Antiques;
• Tuesday to Friday - General; and
• Saturday and Sunday - English Craft.

There are about 150 stalls available in the market that operates from 5am to mid afternoon attracting trade from a wide area including international traders. Regular traders are guaranteed a stall for which payment is required regardless of whether they attend or not (with the exception of the one holiday they are allowed). The number of pitches occupied has fallen from 150 to 100 stalls in recent times.

It is felt that the terrorist threats and then congestion charging have affected business, with the restaurant side being particularly affected. Parking is available for some traders but not enough for all (the alternate parking arrangements being mostly parking meters). The market has also experienced difficulties with loading and unloading goods because of the attitudes from some traffic wardens.

Covent Garden Apple Market
The Apple Market is open seven days a week from 10.30-19.30. The market is antiques and collectables on Mondays, with arts and crafts from Tuesday to Sunday. Unfortunately, the operator was unavailable for comment.

Smithfield Market
The Corporation of London owns and operates Smithfield Market, Britain's largest meat market, which attracts buyers from London and further afield. It is one of the oldest markets in London and falls within the congestion charging zone.

The market has 44 pitches, all of which are occupied. The market operates from midnight to midday dealing with the wholesale of meat and poultry and consists of long-term tenants with no casual traders.

Traders have intimated that life is more difficult and that there has been a drop in trade. The affects of the current situation can be seen in the number of empty parking meter spaces and the quietness of the market (which is usually buoyant throughout the year, with the exception of January). It is not thought that the congestion charge is solely responsible as it is felt that the general recession, lack of tourists, and perhaps even the temporary closure of the Central line, have all been factors contributing to the fall in trade.

London Borough of Lambeth

The markets identified by the London Borough of Lambeth are:

Market	CC Zone	Number of Pitches	Type of Trade	Day	Time
Brixton Market	No	138	General Retail	Mon-Sat	Mon, Tue, Thu-Sat: 08:00-18:00, Wed 08:00-15:00
Waterloo	Yes	77	General Retail	Fri	06.00 - 14.00
Lambeth Walk	Yes	4	General Retail	Mon-Fri, Sat	12.00 - 18.00 09.00 - 16.00
Tunstall Road	No	Various Scattered Pitches	Arts and Crafts Market	Not Available	Not Available

The London Borough of Lambeth has found little difference in the number of street traders within the Borough. The Council commented on the fact that they had received complaints from street traders regarding the congestion charging but this did not affect their numbers - the perception being that it's because street trading is their livelihood.

London Borough of Southwark

The markets listed for the Borough are:

Market	CC Zone	Number of Pitches	Type of Trade	Day	Time
Agora	No	50	Clothes and Hair Accessories	Not Available
Bermondsey Antiques (New Caledonian)	Yes	Not Available	Antiques	Friday	06.00-14.00
Borough Market	Yes	Not Available	Food	Mon-Fri, Sat	12.00-18.00 09.00-16.00
Camberwell	No	12	General / Second-hand	Mon-Sat, Sun	08.00-18.00 10.00-15.00
Choumert Road	No	30	General Goods	Mon-Sat	09.00-18.00
East Street	No		General Retail	Tue-Sat, Sun	09.00-17.00 08.00-14.00
Elephant and Castle	Yes	30	General Goods	Mon-Sat	07.00-19.00
Rye Lane	No	85		Mon-Sat	07.00-17.00
Southwark Park Road	No	50	General Goods	Mon-Sat	09.00-18.00
Tower Bridge Road	Yes	Not Available	General Goods	Mon-Sat	09.00-18.00
Westmoreland Road	No	Not Available	General Goods	Mon-Sat	09.00 - 18.00
Westmoreland Road	No	Not Available	Second-hand	Sun	09.00 - 18.00

Southwark has over 1000 market pitches throughout the Borough, of which around 70% are occupied. Traders sell a variety of goods from specialist farm foods to second-hand records. Casual traders are required to register with the Council giving them authorization to trade through a temporary day licence but they do not have rights to a particular pitch and there are no guarantees that a pitch will be available on the day.

Casual traders can become licensed following a period of monitoring and assessment. On successful completion of this period, they are granted an annual license to sell an agreed commodity from a specified pitch in a particular market on specified days. Car-parking facilities are situated close to most markets - the council currently rents out 40 secure parking spaces with CCTV monitoring charged at £20 per week, allocated on a first come first served basis.

It is not known whether congestion charging has been a contributory factor as generally the market trade has been dropping. The number of traders has been decreasing over the years with more empty spaces. The pitches have not been full for at least a year and it is thought that other events occurring in the Middle East will have a further knock on affect.

London Borough of Islington

The markets listed for the Borough are:

Market	CC Zone	Number of Pitches	Type of Trade	Day
Chapel Market	No	300	General Retail	Tue-Sun
Exmouth Market (French Farmers)	Yes	30	French Food and General Retail	Thu-Sat
Whitecross Street	Yes	200	Not Available	Not Available
Camden Passage		Not Available	Not Available	Not Available
Islington Farmers	N/A	Not Available	Food	Sun

Most of the markets in the Borough cater for commuters and often tend to sell small items, for example CDs. The Islington Chapel Market along with Whitecross Market has received an increase in the number of casual applications but again this seems to be a general trend across the markets. Most of the regular traders no longer hold long-term licenses and have instead opted to become casual traders. The Exmouth Market, which is based near Farringdon, is now operating only three pitches. Of note here is that the remaining traders are all food retailers, selling French, Thai and seafood. Whitecross is also narrowing towards the food trade, whilst other types of trade have experienced a decline, the food trade is sustaining.

Although the congestion charge was perceived to have contributed to the decline in street trading, there have been other contributing factors as well. An example is the up-market restaurants surrounding the area that have expanded by setting up tables outside the restaurants and thus occupying pitch space; or the French Market, which has now a reduced number of traders travelling in from France. The traders also relied on local business and as a few businesses have moved out or shut down this has naturally had a knock on affect on street trading. There is also the psychological element of the customer, the visual decline in the market size and the number of traders discourages customers from attending the markets particularly because the markets are perceived to be on its 'last legs'.

The Council described the traders as being affected by a 'double whammy', the parking and the congestion charge. The wellbeing of the traders and the atmosphere in the markets was described as being one of 'depression'. Again, there was uncertainty to the exact cause of the decline in street trading. The first four months of the year generally tend to be low in trade, and have become known as the 'kipper season'. The possibility that this was a common pattern emerging across the street traders was mentioned but is difficult to verify.

London Borough Of Tower Hamlets

The markets listed for the Borough are:

Market	CC Zone	Number of Pitches	Type of Trade	Day	Time
Petticoat Lane	Yes	1000	General Retail	Mon-Fri, Sun	10.30-14.30 09.00-14.00
Columbia Road	Not Available	Not Available	Flowers / Plants	Sun	07.00-14.00
Brick Lane Market	Not Available	Not Available	General Retail	Sun	08.00-13.00

The Council has noticed no change in trading patterns or the number of applications with the introduction of the congestion charge.

London Borough of Hackney

Hackney markets have not been affected by the congestion charge mainly because the Borough contains only a minor part of the zone and all of Hackney's markets are situated outside the zone. The Council has generally received an increase in casual applications over the last 18 months and applications vary from the different communities formed in London. Once again the reason behind the increase of casual applications cannot be quantified at this stage.

Note: The National Association of British Market Authorities (NABMA), who represent the interest of Local Authorities Markets, were unable to comment at this time (their next meeting is not scheduled until September after which they may be able to provide useful feedback).

Summary

The main findings in this section may be summarised as:

• Some of the market operators perceive the congestion charge to being a contributory factor towards the decline of the traditional market; however, it was also acknowledged that this was not the sole contributor and that other economic factors also need to be taken into consideration when assessing the decline. Many of the operators were uncertain about the exact nature of the decline mainly because they were unsure how to measure the impact given the current economic climate;
• A trend seems to be emerging in the increase in the number of casual applications for pitches, and a number of reasons could be proposed. The regular traders may have changed to casual trading, possibly because the low employment climate that London is currently facing, preferring to trade on days known to be busy, with the option to transfer between markets. Other possibilities include, again because of London's economic climate, that street trading provides a quick method of establishing a livelihood, and although not necessarily easy it certainly provides a means of income for many. Initial desk research indicates that the applications were received from various emerging communities in London, but in this study there is not sufficient evidence to infer a link between the two; and
• It should be noted that this research has come from the operators rather than the traders' views and a disparity between the two may exist. It is difficult for operators to assess the implications of the congestion charge because it is still in its infancy. Hence the uncertainty surrounding the impact of the general economic environment and the wider effects associated with the general economic slowdown cannot be measured at this stage.

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