Drivers will be charged £5 each time they enter London in a bid to cut traffic by 15 per cent. The daily charge, due to be introduced in 18 months time, will raise £200 million a year which will be used to improve transport. Charges announced last month will apply between 7am and 7pm every working day and will be enforced by digital cameras able to read number plates. Drivers wilt pay on the day or in advance and face an £80 fine if caught trying to evade the charge. Motorcyclists, taxis and some buses and coaches will be exempt while disabled and residents in the central charging zone will receive a discount.

London Mayor Ken Livingstone said that, in order to support the scheme, there would be improved bus, rail and Underground services. Capacity on the Tube and rail systems wilt increase by 40 per cent in the first ten years and by 50 per cent by 2016. A 40 percent increase in the capacity of buses was also predicted.

Mr Livingstone said traffic growth in inner London during this period would be halted and in outer London it would be cut by a third, helping businesses which depends on using the roads. Charging was intended to cut pollution and benefit the environment. He claimed the scheme was designed to meet differing transport needs across London, with Central London in need of the most drastic measures. In outer London, where two thirds of people get to work by car, commuters are promised better services.