KEN LIVINGSTONE is planning to increase the congestion charge by 60 per cent, from £5 to £8, overturning his previous promise to raise it only by the rate of inflation.

The Mayor of London said that he wanted to impose “one large increase” in his second term to prevent congestion from creeping back up and to raise an additional £50 million to £60 million for investment in transport. The extra money would almost exactly cover the costs of Mr Livingstone’s plan to extend the charging zone westwards from 2006 to cover most of Kensington and Chelsea and more of Westminster.

But the increase, which could be imposed by next July after consultation, has angered retailers and delivery companies. Many shops inside the charging zone have already experienced a sharp fall in turnover.

The number of vehicles entering the zone has fallen by 70,000 a day, or 30 per cent.

A week after the scheme began, in February 2003, Mr Livingstone promised: “I can’t conceive of any circumstances in the foreseeable future where we would want to increase the charge, although perhaps ten years down the line it may be necessary, given inflation.”

After being re-elected this summer, he suggested putting the charge up by £1, to £6.

Mr Livingstone appears to have decided to make drivers pay for the shortfall in his transport budget. His spending on buses has increased tenfold to £500 million since he became mayor in 2000 and it is likely to rise to £600 million by 2009. He has announced plans for a new Thames bridge in East London and a £1 billion extension of the East London Line.

Angie Bray, the Conservative spokesman on the congestion charge, said: “The old Red Ken has reared his ugly head again.”

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