LONDON'S first elected mayor will have new powers to run transport in London which could see the introduction of congestion-charging and a parking tax with the cash raised invested in improvements in public transport.

Subject to a referendum by Londoners on May 7, the mayor will be elected in about 20 months' time. London's transport strategy will need to be consistent with the Government's integrated transport strategy plans, which will be published in next month's transport white paper.

In announcing the Government's plans for the new Greater London Authority and a number of executive bodies, including a mayor-run Transport for London organisation, Deputy Prime Minister John Prescott said: 'This would control the underground and London buses, and be responsible for taxis, Thames river boat services, most main roads and the Docklands Light Railway. It would also have a say in how the other commuter railways are run.'