Congestion zone expands to west

Charging will begin in the new area from February 2007, with Mr Livingstone admitting the move will be unpopular. But he added that he would introduce a "pay next day facility". The central area of London has been subject to a congestion charge since February 2003.

A Transport for London (TfL) survey showed that 63 per cent of residents and 72 per cent of businesses were opposed to the extension, which will bring the charge to Chelsea, Knightsbridge and Kensington.

The Mayor said yesterday he did not dismiss residents' and companies' concerns out of hand but that he was "unpersuaded that the representations received (or any other matters) outweigh the arguments in favour of the extension".

Once the western extension is operational, the finish time for charging within the whole of the charging area in London will be brought forward from 6.30pm on weekdays to 6pm.

Geoff Pope, the Liberal Democrats' London Assembly transport spokesman, said the decision was "the wrong scheme at the wrong time". The charge went up from £5 to £8 a day in July and will remain at £8 until at least 2008.

Dan Bridgett, the London Chamber of Commerce's press and public affairs director, said: "Given that this week saw the publication of the worst retail figures in more than two decades, many retailers will be left feeling that they're being kicked while they are down."