The fees High Street banks pay to the City watchdog will double next year as a result of the economic crisis. The total bill for the Financial Services Authority will rise by £117 million to £415 million in the coming year.

Finance firms and individuals also face bigger fines and penalties under a more aggressive regulatory regime. The higher fees partly cover the extra 280 staff taken on to beef up regulation.

Financial Services Authority chief executive Hector Sants said the major deposit-taking banks that had been at the centre of the crisis will see their fees increase by between 108% and 113% while large investment banks will pay between 60% and 70% more.

Sants said this was justified: "This means a typical increase from £10 million a year to £20 million, which is not all that much in the banks' whole scheme of things. As a result of what we have learned from the last 18 months, we are changing our supervisory model and it is those firms which require the most regulatory work which will pay the most."

He said 10,000 of the smallest firms would have no increase. Indeed, because the FSA had raised more through fines last year, they would receive a small rebate.

The FSA's total budget will rise by 37% to £415 million in 2009-10. Sants said that, having consulted with most of the firms facing the largest rises, he was happy they were willing to cough up. He added that the FSA's new view was that it would conduct "more intrusive and directive" supervision of the major banks which had the biggest impact on consumers and the entire banking system.

He also warned firms and banks that dealt directly with consumers they could expect far more "mystery shopping trips and branch visits" to check they were treating customers fairly, adding: "Where we find they have acted to the detriment of the consumer, they will face fines. We have already started with payment protection insurance, so you can see the direction we are moving."

Sants and FSA chairman Lord Turner were told today that they face another grilling by the Treasury Select Committee in a fortnight's time over the banking crisis. The Bank of England will also be questioned again.