Car Insurance - Livingstone introduces new car charge - 13/02/2008

An extra car charge has been announced for some London drivers by the city's mayor, Ken Livingstone.

Owners of highly-polluting vehicles are to be levied £25 each day for driving in central London - which, the mayor hopes, will lead to long-term reductions in emissions.

The charge forms part of the London authority's efforts to meet the government target of cutting carbon output by 60 per cent before 2050.

It is anticipated that the levy will generate £30-£50 million per year.

However, the scheme is likely to prove unpopular with the city's motorists, already squeezed by high fuel and car insurance costs.

The bigger, heavier cars which will generally be affected by the new scheme also tend to attract higher car insurance premiums - making the cost particularly acute.

Mr Livingstone said: "Nobody needs to damage the environment by driving a Chelsea tractor in London."
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