Non-Londoners could be charged £3.50 a day to drive into London

People travelling from Berkshire into London could face a new driving fee on top of the current ULEZ and congestion charges.

A new charge for drivers is on the table which would mean non-Londoners would have to pay £3.50 a day to enter the capital.

The idea is being considered to recover Transport for London's finances, reports MyLondon news.

London Mayor Sadiq Khan confirmed that a boundary charge is on the cards, which could raise £500m a year.

According to TfL's finance committee on Wednesday (November 17), a £500 million-a-year funding hole would need to be paid via two possible options.

This would be "either through the devolution of vehicle excise duty paid by Londoners, or from the net proceeds of a potential Greater London Boundary Charge."

Devolving duty cash means that the Treasury would give an extra £600 to the capital annually, but this idea may not be backed by ministers.

The second option indicates a new boundary charge is being proposed, where drivers would have to pay £3.50 a day to enter London from outside the border.

Extra charge would add to existing fees

If the boundary charge came into place, it would be added on top of current fees for people driving into London.

This includes the Congestion charge and £12.50 Ultra-Low Emissions Zone (ULEZ) charge, which expanded to Greater London last month.

The additional fee could prevent the prices of bus and tube fares in London being risen to plug the funding gap.

Although there is a risk the charge could negatively impact businesses in outer London, as they bring visitors from outside the capital.

£500m per year could be raised

Transport for London says the boundary charge would reduce the number of vehicles entering the capital, and further contribute to a "green recovery for London."

It added the charge could raise roughly £500m every year.