Company car drivers rack up £1m fines in

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Since the launch of the scheme covering Chelsea and Kensington, the number of congestion penalties paid by business motorists has doubled.

A study of 129,000 company car drivers shows they were fined £611,000 in the 12 months after the extension came into operation in February last year.

By contrast, in 2006 they were fined only £310,000.

According to the study by fleet management firm LeasePlan, 2008 fines have already reached £403,000.

Over the same period the amount of other motoring fines paid by company car drivers - including penalties for parking offences and speeding - has dropped by 15 per cent.

It means congestion charge fines now account for almost three quarters (72 per cent) of all fines amassed by drivers in company vehicles. David Brennan, managing director of LeasePlan, said: "Dealing with driver fines is an inevitable part of running any company car fleet.

"Drivers will pay the majority of these fines themselves but employers spend a great deal of time processing the documents."

Mr Brennan added: "Congestion charging isn't an inherently bad concept, but these figures expose a worrying trend in how they're affecting UK businesses.

"The charge itself is a big enough burden for companies to shoulder, but there are also implications due to the administration costs that come with these rocketing levels of fines.

"With many businesses already struggling in the downturn, the last thing they need is the hassle of managing so many fines."

Mayor Boris Johnson's consultation into the future of the western extension zone closed at the weekend. Transport for London will report back on its findings later this year.