Olympics bad for business, firms say

Scores of UK small businesses are uniting to challenge the organisers of the Olympics over planned road closures and security restrictions which they claim will put hundreds of jobs at risk.

Test cases were being launched at the High Court in London last Friday, with affected business leaders in east London saying companies could collapse.

About 40 businesses employing 550 people are thought to be affected and range from transport firms to printers, cafes, garages and retailers.

The case comes to court in the same week as residents of flats at the 17-storey Fred Wigg Tower in Leytonstone, east London, lost a legal battle to stop the roof of their block being turned into a missile base as part of plans to counter any terrorist threat to the Olympic Park in Stratford.

A judge upheld a Ministry of Defence refusal to put up frightened residents in hotels for the duration of the Games or site the missile system elsewhere.

Last Friday, lawyers for the business companies in the Hackney area hoped for better luck as they asked Mr Justice Singh for permission to seek judicial review against the Olympic Delivery Authority (ODA).

They want to challenge the legality of traffic management regulations which restrict movements of vehicles using the Olympic route network.

They are expected to argue the restrictions unlawfully affect their right of access to their own premises and also affect the access rights of their suppliers and customers.

The judge was told of their fears that, unless there is a change of attitude, either their businesses will be severely damaged or forced to closed down.

They contend they have an arguable case that the ODA does not have the power in all circumstances to impose the restrictions under the relevant traffic management order.

They say the authority has failed to assess their need for reasonable access to their premises or made appropriate exemptions.

There has also been a failure to offer to compensate or relocate affected businesses.

All the businesses are outside a compulsory purchase zone, inside which 193 affected companies were given compensation and new homes.

The challenge group is being led by Graham Phelps, boss of Hackney-based haulage firm Phelps Transport.

He said local traders feared the disruption could cripple deliveries and deter customers.