London road congestion charge rises 60 per cent

LONDON - London's congestion charge on vehicles entering the city centre has risen by two thirds to £8.

The increase from the previous £5 is expected to raise up to £45 million a year to reinvest in transport.

But opposition parties say the move will be bad for businesses.

The charge, introduced in February 2003 on weekday traffic, has been credited with reducing congestion in central London by 30 per cent.

"The increase will maintain the benefits currently witnessed ... and build upon its success, cutting congestion even further, and raising more revenue to be invested in London's transport system," London Mayor Ken Livingstone said.

But an Conservative member of the London Assembly, Angie Bray, protested.

"This is bad news for businesses, bad news for residents and bad news for Londoners," she told Reuters.

"It is a blow for businesses who are already in pain with the current five pound charge level."

The charging scheme, which is operated by support services company Capita Group, is the biggest in the world, extending from Hyde Park in the West to Tower Bridge in the East.

- REUTERS