Transport ministers are consulting privately on emergency legislation to limit the political damage of congestion charging in London, including allowing councils to charge utility companies for digging up roads.
At present London councils may charge if a utility firm completes its work late, but many companies have found simple ways of circumventing the law.
Ministers fear they will attract political blame for congestion charging in London, which is due to begin in February. They plan to accuse London mayor Ken Livingstone of implementing an incompetent technological scheme.
The Labour-controlled London assembly transport committee yesterday raised fears that motorists forced off the roads by the charge will add to the problem of overcrowding on public transport.
Ministers want initially to extend a pilot scheme in Camden, north London, allowing the council to charge any utility company that digs up the road. In the longer term, ministers are looking at requiring utilities to buy a permit to undertake roadworks.
Mr Livingstone recently published figures showing that 70%-80% of roadworks in the capital are carried out by utility companies. More than 140 such firms are operating in London with almost complete powers to classify their work as essential or emergency.
Transport ministers believe that Mr Livingstone is likely to blame the DVLA for any problems in imposing fines on drivers who do not pay the £5 per day charge. Up to 25% of car owners in London are not correctly registered with the DVLA.
Transport ministers have been privately consulting inner-London councils and Transport for London to see what measures can be implemented to reduce road congestion.
The Conservative-controlled Westminster council, one of the authorities most affected by road congestion, has urged the government to introduce automatic penalty charging against utility companies.
The council has also recommended that traffic light changes which have been implemented by Mr Livingstone be reversed to give more time for cars and less time for pedestrians.
Ministers fear that if the London scheme runs into difficulties, the principle of congestion charging will be permanently discredited. Some 10 other local councils are waiting to see how the London scheme works before they decide whether to implement congestion charging themselves.
The transport secretary, Alistair Darling, has privately cited the unwillingness of councils to impose congestion charging as one reason why he will today admit in a progress report on his 10-year plan that he will not be able to meet pledges to cut major road congestion by 5%.
