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@mooks
I'd prefer to see an incremental charge to reflect the public transport infrastructure in the local area. The number of tube stations and bus links in central London are much better than they are in say Uxbridge or Romford, so the charging would need to reflect this. By all means we need to encourage reduced car use, but I don't think it would be 'fair' to impose the same rule on people in poorer parts of town who may live a couple of miles away from a bus stop or tube station who would suffer becuase they can't afford to live closer to the main transport hubs in their area.
It stands to reason that the closer you are to train, tube and bus stations, the more expensive your accommodation and cost of living will be. The issue is to address this, rather than to throw a charge at all and sundry. Identify the issues, develop a solution - it'll work much better in practice than working on the logic 'a higher or more widespread congestion charge will stop people using their cars'.