Fines issued to motorists for driving in a bus lane are to be repaid in a move that could cost the Hertfordshire taxpayer as much as £1.26m.

A number of motorists objected to cameras monitoring a bus lane on Moor End Road, Hemel Hempstead, and a traffic penalties tribunal held in February has since found in favour of the drivers.

The camera had generated 34,932 penalty charge notices since August 8 last year, of which 30,335 have been paid – costing motorists approximately £935,000.

Hertfordshire County Council, which installed the cameras, has reportedly only made £135,000 from the scheme, due to costs.

Hertfordshire's Liberal Democrat group said the county council was today advised that any attempt to overturn the tribunal’s decision is unlikely to succeed.