Bus fares in the centre of the capital will go up from 70p to �1.

In a new two-fares-only system, passengers using London Buses will pay �1 for any zone 1 journey and 70p for any trip outside zone 1.

London Transport said the fare change, which will come into effect from 9 January, will be offset by a new �5 ticket which offers six trips for the price of five.

London Tube travellers face 7% fare rises, pushing a single-stop journey on the London Underground up from �1.40 to �1.50.

Tunnel vision: Tube fares will go up 7%

There are also 7% rises for zone 1 central London monthly and weekly Tube season tickets.

An annual travelcard involving travel anywhere on all six zones of the Tube will rise just 1.4% to �1,416.

London Transport said the Tube fare rises, which will yield �22.5m in a year, averaged 2.5%.

Transport strategy director Richard Smith said: "We have tried to achieve a balanced increase in Underground fares that will produce the income we need for investment and at the same time offer real value for money to our customers."

But Susan Kramer, Liberal Democrat candidate for Mayor of London, said: "Forty-three per cent fare increases are outrageous.

"They will fall most heavily on the people who are least able to pay. We must try to get people out of their cars for short journeys and a 43% increase is simply the wrong direction.

"Labour have forfeited any right to run public transport in London."

Tory transport spokesman Bernard Jenkin said: "These huge increases are another savage blow for London's Tube commuters.

"They show that Mr Prescott's hopeless public private partnership is a total rip off, and Labour's integrated transport policy is just another Labour lie."