Congestion charging has beaten all predictions of success, London's mayor has claimed on the scheme's first anniversary.

Ken Livingstone said the scheme had reduced traffic levels by 15 per cent.

He revealed figures showing that the bus has been the biggest winner with journeys up three per cent.

The mayor claimed that just 4000 people less are travelling into the city and no other country in the world had achieved the same level of changes.

At his weekly press conference in City Hall, Livingstone claimed last summer's excessive heat wave and the Iraq war had made a bigger impact on retail sales than the charge.

"I don't have the slightest doubt we will see the London economy picking up," Livingstone said.

He gave a bullish assessment of the scheme's future.

"This has led to a remarkable shift in travel patterns throughout the city. What this shows is the way forward," Livingstone said.

Extension

The mayor reconfirmed his support for plans to extend the current central London congestion charging scheme westwards, to cover most of Kensington and Chelsea and Westminster.

The fact that the scheme has made successes, both in terms of technology and in cutting traffic, is a major political boost to Livingstone who took a massive gamble in backing the idea.

But the anniversary was also marked by press reports that the man credited with making the scheme work, Derek Turner, has been dropped.

Business and environmental campaigners have taken opposing views on whether the initiative can be considered to have worked.

Success 

Pressure group Transport 2000 claimed congestion charging has proved a massive success for the Capital.

It claimed everyone who lives and works in the city from residents to commercial vehicle operators have all benefited and the international image of London, particularly as a tourist destination, has been enhanced.

Transport 2000 claimed cycling in London had gone up by a third and bus speeds had risen by seven per cent in the charging zone.

"There is no doubt that congestion charging has been a shot in the arm for the city centre in all sorts of ways," said Richard Bourn, London campaigner for Transport 2000.

"Other cities around the country would do well to consider replicating its success in their area. The success of congestion charging has made a big impression too on the government and put the issue of national road user charging firmly on the map."

Business

But business pointed to a drop in retail sales and called on the mayor to make revisions.

The London Chamber of Commerce marked the first anniversary with a call for a congestion charging "window".

The group urged Livingstone to allow an interval of several hours during the working day when the charge would not apply.

"Something needs to be done to end the anomaly of motorists paying a congestion charge at times when there is little or no congestion," said chief executive Colin Stanbridge.

"There is obviously too much traffic during the rush hours. But in the late morning and mid-afternoon there is little or no congestion in much of central London. The principal effect of the charge at these times is to deter shoppers from driving into the centre of town.

"The mayor has said that he will do everything he can to assist retailers and businesses which have suffered from congestion charging. We'd like to respond by urging him to take the steps to implement this change to the charging hours as soon as possible."

Livingstone's political opponents also signalled they wanted to see change.

Norris

The Conservatives remain implacably opposed to the pricing policy with mayoral candidate Steve Norris sticking to his pledge to abolish it if elected in June.

"The congestion charge has reduced traffic inside the charging zone but the price London has paid for that reduction is simply unacceptable," he said.

"The scheme runs at a loss - a far cry from the £200 million it was supposed to raise.

"More importantly, shops, restaurants and businesses in the zone have been damaged, many to the point of closure - a fact reinforced by the Royal Institute of Chartered Surveyors which showed that 90 per cent of retailers in the zone had been adversely affected.

"If this is Livingstone's idea of a better city, it certainly is not mine."