Reduce C-charge to four hours a day, say traders

London First says the charge should still begin at 7am but end at 11am to encourage shoppers back into west London.

It is also calling for the congestion zone to be divided in two, with separate charges for the original central London zone and the western extension.

This would prevent residents of either zone driving at a hugely reduced rate throughout the entire congestion charging area,to reduce the number of car trips made into central London.

Under London First's plans, non-resident drivers entering the central zone would pay the usual charge. They would then pay the charge again, discounted by 50 per cent, for entering the western zone. It means non-residents would pay £8 to enter central London plus £4 to travel on into Chelsea, Kensington and parts of Westminster. Drivers from outside the zone would pay £8 to enter the western extension zone only.

The influential business group has also called for some profits from the charge to be put back into new measures to reduce congestion in London.

It wants all holes in the road on major routes to be covered over with metal plates when work is not ongoing and to introduce inspectors who would check roadworks are finished on time. The group also says motorists should be able to pay the charge on account.

Today's statement from London First is a U-turn after it vociferously opposed the launch of the western zone. But it says that with £120 million already spent on setting up the zone it would now prove too expensive to scrap it.

The business group also warns that congestion in west London is likely to increase due to the construction of Crossrail and the imminent opening of the White City shopping centre with 4,500 free spaces.

In contrast, Hammersmith and Fulham Council today insisted that the "failed" extension should be scrapped. It said there was no evidence the scheme had cut congestion in west London and claimed business was being stifled. "Hammersmith and Fulham is totally outside the zone and we get all the disbenefits with none of the benefits," said a borough spokesman. "Residents don't get the residents' discount but the borough gets all the traffic running around and through it to avoid the charge.

"Businesses like florists, estate agents and dry cleaners have complained about being cut off from customers as they cannot afford the £8 levy every day.

A public consultation into the future of the extension zone closes on Sunday.

Hammersmith and Fulham says motorists heading into London - and dumping their cars in the borough to continue on public transport - are clogging up parking bays. Nicholas Botterill, deputy leader, said: "West Londoners cannot afford for this decision to go wrong."

Hammersmith and Fulham Council is holding a public meeting on the future of the congestion charge at its Town Hall tomorrow at 7pm.