The increase from £10 to £11.50 to drive into central London is the first price change since 2011 and will come into effect from 7am on Monday 16 June.
Transport for London (TfL) said the rise was necessary to ensure the c-charge remained effective in managing congestion in central London.
David Leam, head of infrastructure at business group London First, backed the increase saying “it needs to rise to manage worsening congestion”.
But the Federation of Small Businesses (FSB) said it would hit smallest firms the hardest, and a survey of its members showed 66 per cent were opposed to it
Sue Terpilowski, the group’s London policy chairman, said: “Congestion has risen back to pre-2003 levels and it is clear that the scheme is not fit for purpose.
“Londoners deserve a grown up debate about the merits of the current scheme in operation which is why an 11.5 per cent increase is a regressive step.”
When the new charges come in, auto pay system and fleet customers will continue to have a £1 discount making their daily rate £10.50.
TfL promised to introduce several facilities for customers, including direct debit payments for auto pay customers, online discount applications, and easier reimbursement for NHS patients and staff.
Garrett Emmerson, TfL’s chief operating officer for surface transport, said: “These changes will ensure the congestion charge remains effective in managing congestion in central London.”
The congestion charge is levied on journeys within central London between 7am and 6pm from Monday to Friday
The daily charge was £5 when it was introduced in February 2003.
