Boris scraps Ken's plan to hit gas-guzzlers with £25 congestion charge

The High Court confirmed today that the paperwork needed to end former London mayor Ken Livingstone's key policy had been completed.

This means there will be no increase in charge for drivers of Band G vehicles from October 2008. The Band A and B discount, which would have resulted in thousands of cars driving into the zone for free and adding to congestion, has also been removed.

Ending the charge on the capital's most polluting vehicles at this stage means that Transport for London will save around £10million that would have gone on implementing the scheme.

The move also means Porsche is entitled to have legal costs, estimated at £400,000, paid by TfL after it launched a challenge to the former mayor's plans.

But the car-maker has offered to donate the money it receives to Skidz, a charity that provides young people, particularly those with few advantages, with mechanical skills and training that could lead to future employment.

Skidz will use the money to set up a branch in Hillingdon. Mr Johnson said: "My commitment to making the congestion charge fairer and more effective for Londoners is well known.

"And I am delighted that we have been able to scrap the £25 charge, which would have hit families and small businesses hardest. I believe the proposal would actually have made congestion worse by allowing thousands of small cars in for free.

"I am very pleased to hear that rather than adding to their own coffers, Porsche have decided to use the costs we are now required to provide them with to support Skidz. I am delighted that Skidz will use the money to offer training for young people in the capital."

TfL commissioner Peter Hendy said: "We will be working with the Mayor to strive to cut CO2 emissions from transport in London by promoting cycling and walking, encouraging people to drive in a more efficient way and by cutting Transport for London's own CO2 emissions."

The decision by the Mayor means that the discount for alternative fuel vehicles will remain in place and the existing congestion charge scheme will not be affected.

The London Low Emission Zone, which seeks to reduce harmful emissions from the largest diesel-engined vehicles like lorries, buses and coaches, is unaffected.