Ken almost scrapped C-charge

Ken Livingstone almost scrapped the congestion charge in July over problems with the firm running it, he claimed today.

Thousands of drivers had difficulty getting through to Capita's call centre to pay. Others were wrongly sent £80 fines even though they paid or did not enter the zone.

Today the Mayor said he nearly tore up the £250 million, five-year deal after five months. He told the London Assembly: "If we couldn't re-negotiate, Bob Kiley [transport commissioner] and myself decided to terminate."

However, Transport for London renegotiated with Capita - paying up to £31million extra to improve the call centre. It also ordered a crackdown on charge-dodgers.

Capita approached TfL within weeks of the charge's launch in February wanting to renegotiate, Mr Livingstone revealed. TfL refused Capita's request, but Mr Livingstone said there had been "two mistakes" with the Capita contract.

It had under-estimated the number of drivers who would avoid central London and the number who would try to avoid the £5 fee, he said.

Projected income for the year has fallen dramatically from £121million to £65million. This money was to have been invested in public transport.

Mr Livingstone said the re-negotiated contracts - which he published on the internet last month - meant Capita could now make a "decent and honest profit". He added: "Capita's extra money comes as they catch the villains who are defrauding Londoners."

But Liberal Democrat Assembly member Mike Tuffrey said: "The contract was fatally flawed." Conservative Angie Bray said: "TfL was more interested in getting the charge up on time than getting it right for London."

TfL says 98,000 drivers and 12,000 fleet vehicles pay the £5 daily charge. Traffic in the zone is down 20 per cent. lMr Livingstone has vigorously defended his scheme in the face of close scrutiny from the Standard on a number of issues, including charge-dodging and alleged faults with enforcement cameras.

While many reports have stressed the effectiveness of the £5 charge in reducing traffic, business organisations claim the charge has driven away trade.