The Mayor of London Ken Livingstone today confirmed the controversial congestion charge is to rise from £5 to £8 in July.
The move follows a public consultation but London Assembly members and business leaders have already warned it could be bad for the capital.
The congestion charge for vehicles on the fleet scheme will also rise from £5.50 to £7.
Those paying monthly and yearly installments will be entitled to discounts.
The Mayor said: "Congestion charging has been in place for just over two years. It has achieved its key objective of reducing congestion and has also provided an additional stream of revenue to help the funding of other transport measures within my Transport Strategy."
However, a spokesman for the London Retail Consortium said: "Despite overwhelming opposition to this, the Mayor has ignored the voice of business. Increasing the charge has little to do with reducing congestion, and more to do with trying to make the weak business case for a Western Extension financially viable.
"The current scheme has already surpassed the congestion reduction target set out at its inception; so further reductions are unwarranted."
Mr Livingstone said requests from businesses had been weighed.
He added: "In response to requests from business and fleet operators to make the charge easier to pay and to reduce the impact of the charge on business, the daily charge for vehicles on the fleet scheme will be set at £7.
"In addition, large discounts on monthly and annual payments will make the charge easier to pay for regular users and should lead to fewer penalty charge notices being incurred by drivers who forget to pay the charge."
Lynne Featherstone, chair of the London Assembly's Transport Committee, said: "Londoners, many of whom are opposed to congestion charging anyway, do not want to pay more for driving through central London.
"Today's news signals that the Mayor is pushing ahead with this increase even if many Londoners are opposed to it.
"It is also very surprising that the Mayor is adopting higher charges when there is no rationale for such a sharp rise. Levels of traffic and congestion in the charging zone have fallen by up to 30 percent since the introduction of the scheme.
"London is working with the present level of reduction, Mayor Livingstone should not be raising money under false pretentions."
1:56pm today :
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