THE Royal Mail could be saddled with an annual £2 million central London congestion charge bill following a recommendation from its independent regulator that its fleet should not be exempt from the £5 per vehicle per day charge.

The Royal Mail is currently on the list of businesses that are exempt from congestion charging when it goes live on February 17, and this week it will try to persuade Transport for London that it should stay that way, despite the decision of its regulator.

The company claims that because it has an obligation to deliver any letter under £1, no matter how much it costs to get it there, it should be exempt from the charge. When the exemption was announced delivery firms competing with the Royal Mail were incensed at the decision, saying it created an unfair playing field.

Meanwhile, London mayor Ken Livingstone has revealed where the money from congestion charging will be spent. Of the estimated £130 million received in the first year, £84 million will go on bus improvements, £36 million on road safety measures, £6 million on safer routes to schools and £4 million on closed-circuit television.