Car-sharing firm Zipcar is set to shut down its UK operations just as new congestion charges on electric vehicles come into force in central London.

The American owned business said it will no longer take booking beyond the end of the year and has launched a consultation with its UK staff. It had 71 UK employees, according to the latest company accounts.

The decision is a huge blow to the car sharing movement in London, which has been hampered by higher than expected costs and the suffocating red tape of having to deal with 33 local authorities.

Zipcar was the last major operator in a sector that had once promised to take thousands of private cars off London’s streets.

Zipcar did not give a reason for the decision to close but the new £13.50 congestion charge for electric vehicles

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