No 10 and the mayor are at loggerheads over how to fill a hole in the capital’s transport budget. But is it a £2bn game of bluff?

In its 17 years of operation, the London congestion charge had become a relatively uncontroversial fact of life; few motorists now assert the right to travel for free into the crowded eight square miles at the heart of the capital city.

But now that zone could be expanded far and wide: right out to the orbital roads that ring the inner boroughs – the North and South Circular – used by hundreds of thousands of cars a day.

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