Sadiq Khan has said he will charge non-Londoners £3.50 to drive into the capital unless he is allowed to keep the £500million raised from London drivers in car tax.
The Mayor said it was unfair the vehicle excise duty, which is collected from drivers in the city, is spent mostly elsewhere.
He suggested a scheme like the Greater London Boundary Charge could reduce the number of trips by up to 15 per cent and raise £500million a year.
Mr Khan even hinted he could charge people more if they drive less eco-friendly vehicles over the threshold.
It comes as an independent review of Transport for London’s future funding found a tax on non-Londoners in the city could help traffic, emissions and raise money.
The Mayor said it was unfair the vehicle excise duty, which is collected from drivers in the city, is spent mostly elsewhere
The Labour Mayor said: ‘Ministers have failed to play fair by Londoners when it comes to financing our world-renowned transport system. It is high time they did so.
‘Londoners pay £500m worth of Vehicle Excise Duty every year, which is then spent on maintaining roads outside the capital.
‘It is not fair on London that our drivers should subsidise the rest of the country’s roads and get nothing in return.’
The vehicle excise duty is currently taken from drivers who live in London but spent mostly outside the capital.
Mr Khan wants TfL to keep the £500million raised per year to plug TfL’s financial black hole caused by the coronavirus pandemic.
He suggested a scheme like the Greater London Boundary Charge could reduce the number of trips by up to 15 per cent and raise £500million a year (file photo of central London)
Public transport into and around the city was desolate for months due to most businesses letting their staff work from home to avoid spreading the virus.
Officials are looking into whether a new Greater London Boundary Charge could work for non-Londoners, with the cash being pumped back into city services.
But the scheme would take up to two years to bring in, meaning it would not be ready until after London has bounced back from the crisis.
Mr Khan said: ‘The Government must allow London to retain its share of VED and to support the capital’s transport system properly as in other world cities.
‘It’s not just transport – Ministers continuously hand out pots of money in a whole range of different areas that Londoners cannot access, which is hugely unjust.
The scheme would take up to two years to bring in, meaning it would not be ready until after London has bounced back from the crisis
‘If Ministers aren’t prepared to play fair, then we will need to consider other options to address this unfairness, such as asking people who live outside London and make journeys into Greater London by car to pay a modest charge, which would be reinvested in London’s transport network.
‘As the independent review shows, we can’t go on expecting public transport fare-payers to subsidise the costs of road maintenance.’
Up to 1.3million vehicles travel into London each week, with one million into the outer boroughs.
Traffic has returned more quickly in these areas – back up to 90 per cent – than the city centre since the pandemic started in March.
Last week Mr Khan was urged to suspend the capital’s £15 daily Congestion Charge over Christmas to offer some respite to businesses at a key time of year.
Shaun Bailey, the Tory candidate to replace Mr Khan in May’s election, said the 12-day respite could be paid for from millions received in fines during the pandemic.
Shaun Bailey, the Tory candidate to replace Mr Khan in May’s election, last week said the 12-day respite from the Congestion Charge could be paid for from fines during the pandemic
His estimates the cost of removing it is £10million across the 12 days, recouped from the extra £25.6million in fines after the charge was extended in the summer.
Mr Bailey said the temporary cessation would help boost football for businesses already reeling from nine months of coronavirus closures and restrictions.
He said: ‘Businesses have had an incredibly tough year. They’ve faced an unprecedented pandemic, two lockdowns, and a Mayor who raised the congestion charge to £15 a day.
‘So it’s time for Sadiq Khan to embrace the festive season and suspend the congestion charge entirely for the twelve days of Christmas.
‘This would help businesses make up for some of the revenue they lost due to coronavirus and the congestion charge hike. It would also encourage families to get out and shop.
‘Yes, it’s not a complete solution, but it’s the least Sadiq Khan can do given he grinched his way through the past few months.’
He estimates the cost of removing the charge at £10million across the 12 days, recouped from the extra £25.6million received in fines after the charge was extended in the summer
The Congestion Charge was previously set at £11.50 per day and applied only during peak weekday hours.
But in June Mayor Mr Khan raised it to £15 and extended its use to evenings and weekends.
He said he was forced to make the increase under a deal with ministers to prop up Transport for London’s finances during the first lockdown.
And last month he said the government forced him to keep the congestion charge at £15 as part of another £1.6billion bailout.
It was revealed at the time that the ‘temporary’ hike raised £100 million over the summer.
Congestion charge income between May and September increased 44 per cent, from £68.1million to £98.3million, compared with the same period last year.
It is expected to remain in force seven days a week to help pay for free travel for under 18s and Londoners aged over 60.
Mr Bailey has vowed to scrap the charge if he is elected next May.