The proposed 'Greater London Boundary Charge' that would have seen Hertfordshire drivers charged £3.50 a day to enter London has now been "ruled out", according to Transport for London (TfL).

The controversial plan to charge motorists to drive into any part of the capital was proposed in December 2020 by London mayor Sadiq Khan as a potential way of raising around £500 million a year for TfL.

And up until today (January 14), it was thought the option of introducing the charge was still being considered, with TfL even undergoing a feasibility study.

However, at a meeting of the London Assembly's budget and performance committee, outgoing TfL chief financial officer Simon Kilonback indicated the boundary charge idea was not being pursued.

He said that Secretary of State Grant Shapps had made it "very clear" he would not support the boundary charge.

Mr Kilonback said: "Right now, we need to get some feedback from Government as to what they will support having ruled out the Greater London Boundary Charge, having ruled out the devolution of Vehicle Excise Duty and having ruled out also looking at new taxes."

He conceded it had reached a "critical point" with the Government with regards to how TfL could generate the money it desperately needs.

Plans for the Greater London Boundary Charge had been condemned by local politicians, including Watford's mayor Peter Taylor, who said TfL could expect a "widespread campaign" against it if pushed ahead with proposals.

It would have meant drivers who live in Hertfordshire - or anywhere else outside of London - would have had to pay £3.50 to drive into any of the capital's 32 boroughs, such as Harrow and Barnet.

In a bid to find extra cash, London mayor Mr Khan has already announced the mayoral portion of council tax paid by Londoners will increase by an average of £31.93 a year from next April, while potential changes to TfL fares would bring in around £60 to £80 million.

But Mr Kilonback said this would still leave TfL to find "about half" of the £500 million of additional revenue a year it requires.

Mr Kilonback told the London Assembly that TfL would need to look at "what is next after the expansion of the Ultra-Low Emission Zone (ULEZ)" to raise additional funds, but stressed that schemes to manage emissions and congestion on the road "cannot be designed to maximise income".

It was revealed at Friday’s meeting that compliance with the ULEZ since it expanded in October is at around 92 per cent, compared to the 87 per cent originally estimated by TfL.

This translates to around £300 million of revenue less than TfL had estimated for.