councils could be liable for the money for those wrongly issued penalty charge notices for alleged offences such as stopping in red zones or driving in bus lanes.
The ruling – by London Tribunals’ panel of three lawyers – is another hammer blow to the capital’s mayor Sadiq Khan, already under pressure for his 20mph zones and expansion of London’s Ultra Low Emission Zone (Ulez).
The crucial test case found TfL broke government guidance by using CCTV rather than civil enforcement officers – traffic wardens – to fine motorists parked in bays on red routes in the capital.
The Government introduced laws in 2015 to limit the use of CCTV in issuing fines because of “overzealous enforcement by local authorities”.
A spokesperson for London Tribunals said that while their ruling did not set a cast iron legal precedent, other adjudicators “may take previous decisions into consideration before reaching a conclusion”.
Around 435,000 PCNs are issued by TfL each year. Paid at a full charge of £160, this is around £69million.
The three London Tribunals’ adjudicators said TfL had acted with “procedural impropriety” by using CCTV to issue fines. Latest guidance from the Department for Transport says “approved devices” – such as automatic number plate recognition CCTV – “are used only where enforcement is difficult or sensitive” and using a traffic warden is “not practical”.
The 22-page judgment, on Commercial Plant Services and others versus TfL, studied the law and government guidance after Tory councillor Ivan Murray-Smith presented the case. TfL failed to overturn that ruling when chief adjudicator Anthony Chan refused to review the case and slammed the body for continuing to use CCTV to fine drivers despite the actions being called illegal.
TfL lost 420 cases between June last year and March this year where CCTV evidence was used – and 2,735 appeals were lodged with London Tribunals in that period.
But the body has said they will not be revoking PCNs.
An official said: “We are committed to keeping London moving safely and efficiently.
“Enforcement by our officers using CCTV cameras is an important part of tackling this. We’re exploring the next steps.”
