The Association of London Government (ALG) which represents London's boroughs, says it is considering a range of options from making no increase at all, to raising the fine for parking on a double yellow line a maximum of £120.

At the moment a ticket in central London can cost £80, with the penalty about £40 outside the central area.

Local councils are responsible for parking fines and they keep the income, which is then supposed to be used to cover the costs of parking operations.

Bad news

The ALG's Nick Lester said: "Everybody has the opportunity to park legally and if they do want to park their car they can find legal places.

"They can avoid any parking penalties at all, and most motorists do that."

Motoring organisations say they will fight any increases.

Rebecca Rees of the AA said: "This is very bad news for drivers. They are already facing increased costs because of congestion charging.

"They already pay more to park than anybody else in the country and we feel they are hugely hit in the pocket. So any further charges are out of the question."

The ALG says it is consulting its members and motoring organisations before making a final decision at the end of the year.

Any new charges could be introduced next April.