Companies that want to dig up major roads in London could face charges of up to 2500 a day to do so from June.
Transport for London will look to charge companies to dig up the busiest roads in peak times to cut down on delays for motorists.
Transport secretary Justine Greening said: Anyone who has travelled on London's roads knows how frustrating it is to find major routes being dug up in the middle of the rush hour or - even worse - lanes coned off when no one is even carrying out any work.
The aim is to incentivise companies to carry out work at night and other off peak times in order to minimise disruption.
London Mayor Boris Johnson welcomed the financial implications of the announcement, saying: Lane rental is a win-win as it will not only help traffic pump smoothly around the vital arteries of our road system, but also give us for the first time the chance to penalise disruptive works where it hurts - in the wallet - using the revenues to fund further innovative ways to keep Londons roads moving.
The lane rental scheme will operate from 11 June on all of Transport for Londons roads, and 27 of Greater Londons boroughs. The remaining six boroughs are consulting on whether to use the scheme and may well have it in place by the end of the year.
Companies carrying out emergency repairs will have the charges waived for the first 24 hours, but will then have to pay the charge from thereon.
London is divided into three bands for the charges, with Band 1 covering most areas. Here the charge is 800 per day for all planned works. These would apply from 7.00am to 10.00am and 3.30pm to 7.00pm Monday to Friday, and 12.00pm to 6.00pm at the weekend.
Bands 2 and 3 cover everywhere else. Here the charge is 2500 per day and applies 7.00am to 10.00pm Monday to Friday, and 12.00pm to 6.00pm at the weekend.