Motorists in central London are set to be hit with an-inflation busting 20% hike in the daily Congestion Charge.
Labour mayor Sadiq Khan is planning to increase the charge from £15 to £18 and scrap the exemption for electric vehicles (EVs).
He also wants to look at increasing the charge every 12 months in line with the annual rise in bus, tube and train fares.
Transport for London has launched a public consultation on the new charges, which could come into effect in January.
The 100% discount for EVs will be replaced by a reduced charge of £13.50 for cars and £9.00 for vans and lorries.
The electric car discount will be cut again in March 2030 to 12.5% which means drivers will pay at least £15.75.
Residents of the congestion zone will continue to benefit from a 90% discount but from March 2027 new applications will only be accepted from EV drivers.
Anyone moving to central London with a petrol, diesel or hybrid will pay full price.
The C Charge last went up from £11.50 to £15.00 in June 2020 during the Covid outbreak.
The Congestion Charge was introduced in 2003 by London’s first mayor, Ken Livingstone. The daily fee was £5.00.
Deputy Mayor for Transport Seb Dance said: “Sticking to the status quo would see around 2,200 more vehicles using the congestion charging zone on an average weekday next year.
He added: “At the same time we must support Londoners and businesses to use greener and more sustainable travel. That’s why I’m pleased we’re proposing that substantial incentives remain in place for Londoners who switch to cleaner vehicles.”
Michael Lloyd, from The Federation of Small Businesses, said: “Many businesses, particularly in sectors where margins are so tight, will not able to absorb these extra costs.
“Businesses will look to charge customers in the charging zone a premium for their business services which will heighten inflationary pressures further.”
Mr Lloyd also urged the Mayor to immediately reconsider the excessive increase and make it more palatable to struggling small firms.
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