A £20 million plan to improve the car-choked North Circular by 2008 has been announced by London Mayor Ken Livingstone.

The plan, which would involve creating two lanes in both directions of the A406 between Bounds Green and Green Lanes, puts an end to more than 20 years speculation over its future.

Mr Livingstone made the decision after visiting the Bowes Road stretch of the North Circular on Thursday, to see for himself the problems daily noise, pollution, rat running and tailbacks cause residents and staff and pupils at nearby Bowes Primary School.

The plan, which is part of the mayor's £10 billion transport investment programme for the capital, has been greeted with mixed reaction by residents and politicians, who have long been campaigning for a more extensive three-lane plan in both directions.

Cllr Terry Neville, Enfield Council's cabinet member for street scene and parks, said: "These latest plans are a real disappointment. Ken has just tinkered around at the edges and has mainly ignored what needs to be done to decongest one of the most car-choked stretches of road in London.

"The local community are massively behind Enfield and Barnet's plans and so are the local MPs. He really has let north Londoners down on this one."

Enfield Southgate MP Stephen Twigg remained more optimistic.

He said: "This scheme is a step in the right direction and I will be working with residents' associations and Enfield Council to get the best possible result for the community.

"A more ambitious plan has not been ruled out in the longer term, but my own view remains that such a plan will be needed."

Despite describing the road as a nightmare' during his visit, Mr Livingstone said an extensive plan to widen the road had been dead in the water' for some time.

He said:"The widening of the North Circular Road is the biggest scheme we have had to scale down, because of sheer cost. Given there are three railway bridges, we would need £900 million for the scheme.

"For £20 million there will be two working lanes in both directions, to improve traffic and the lives of those in the area. No Government would fund a larger scheme until we can show this works.

Up to £2 million of the Transport for London (TfL) budget has also been pledged to implement traffic calming measures on the A406, which would improve pedestrian safety.

Sarah Turner, headteacher of Bowes Primary School, said: "I think if TfL can do what has been suggested, it would improve the environment very quickly.

"We have waited 20 years, so I suppose three years isn't going to be that awful, as long as we start to see action."

Mr Livingstone has also recommended the houses vacated by residents more than 20 years ago when the original three-lane scheme was mooted be brought back into use by Enfield Council.