Drivers could be hit with a daily charge to enter Greater London under plans unveiled by mayor Sadiq Khan.

Mr Khan is threatening to introduce a £3.50 daily fee unless the Government allows the capital to keep the £500 million paid by Londoners each year in vehicle excise duty (VED).

The mayor wants this money to be invested in London's transport network rather than go towards central funds.

He said: "If ministers aren't prepared to play fair, then we will need to consider other options to address this unfairness, such as asking people who live outside London and make journeys into Greater London by car to pay a modest charge, which would be reinvested in London's transport network."

A new Greater London Boundary Charge for non-residents could see higher charges for the most polluting cars to encourage people to switch to cleaner models.

A daily charge of £15 already exists for motorists entering the centre of the city.

But Mr Khan's plan would involve drivers with vehicles registered outside London having to pay once they enter an outer borough such as Croydon, Enfield, Hillingdon and Havering.