London Mayor Ken Livingstone plans to raise the charge to £25 from 27 October for larger cars and small vans. Cars with the lowest CO2 emissions (Bands A and B) will receive a 100% discount.
 
The FMB has warned the plans will deter builders from working in the capital at a time when they are needed the most.
 
A FMB spokesman told B&E online that a third of the building stock in the capital is already under the required standard and with the push to upgrade houses in line with environmental legislation it would be a backward step.
 
The spokesman said: “We have got a poor record of upgrading existing building stock. Anything that deters that from getting better is not a good step. We need to retrofit and make our homes better and this is just another obstacle in the way. Finding a builder is difficult enough in London and this will discourage more going in.”
 
He added that householders will bare the brunt of the proposals.
 
He added: “The Government is tyring to get people thinking about energy efficiency, and to make their homes greener. This makes it more difficult. The extra costs will have to be passed on to the client. A more practical way is to exempt those small businesses who use their vehicles to carry out essential repairs and maintenance work as it’s part of their livelihood.”