Natural progression in stages
First we get the LTN's where rat runs are closed to through traffic forcing everything onto other roads making them now clogged up all day.
We are now at the next stage of trying to force a reduction in the traffic levels through "fines".
As you say it getting out of hand. Those living in a LTN road are generally delighted as traffic has dropped to near zero, while those on the other roads are furious. Meanwhile builders and indeed myself on one occassion no longer bother and simply park illegally and get the fine and add it to the bill: which in itself suggests that the fines are too low if it becomes simply another cost of doing business. All this quite apart from the cost of parking legally in the first place if you can find a place.
The stated objective of this congestion charge is to stop people driving across the city so you can avoid it by driving out to the ring road, round that and then back in to where you want to go, so its not a true 'ring of steel'. At a cost of course of added congestion on the ring roads.
How it all work out depends on how many permits the locals use up and how much they want the convience of afterwards simply paying £5 vs that of having to drive out, round and back again, vs the obvious one of not bothering and staying at home instead.
The council are at the same time making all the park and rides - or rather the Ride bit free with a valid park part ticket. Previously you both paid to park and paid to take the bus in.