Cashless parking across the capital

The move comes after Westminster, Wandsworth and Hounslow councils tested the system, which involves sending a text message to pay for parking.

London Councils, which represents all 33 local authorities, is considering creating a telephone "hub" so drivers can text just one number wherever they are in the capital.

Drivers will be able to set up an account, pre-registering their address and payment and vehicle details.

Then each time they park, they will send a message telling the hub where they are and how long they plan to stay, so the money is automatically deducted from their bank account.

Councils believe the cashless system will solve the problem of thefts of coins from parking meters.

But the AA and RAC Foundation say drivers who prefer using cash to pay for parking should still be allowed to do so.

Sheila Rainger of the RAC Foundation said: "This must not be a means to switch entirely to phone payment by stealth. Not everyone has a mobile phone or credit card and some have fears over the palaver involved in setting up an account if they visit London only occasionally.

"Other motorists have fears about identify theft if they have to hand over details of credit cards."

Nick Lester, transport director of London Councils, insisted cash payments would continue.

"Around five per cent of people do not have mobile phones, with a similar number who do not have debit or credit cards," he said. "We cannot have a situation where these people would be unable to pay to park."

He said the texting system meant drivers would no longer have to carry change for meters, while councils would save money on emptying and maintaining meters and pay-and-display machines, and would see a reduction in theft from meters, which costs Westminster alone £100,000 a week.

The central telephone hub could be launched as early as next year.