If you read any of the tabloids in the UK, they spend a lot of time discussing the fines (both parking and speeding) that foreign registered vehicles incur on UK roads. The general consensus is that there are currently no enforcement mechanisms in place to catch and fine foreign registered vehicles.
As correctly pointed out, parking fines are the remit of the Borough (council), rather than the DVLA. I have previously received tickets in both Tower Hamlets and Lambeth boroughs on foreign plates (South African), and these have never been followed up or enforced. I would expect Westminster (which covers Traflagar Sq) to be the same.
Annoyingly, Westminster is also the only London council that now charges you to park a bike on the street.
cheers
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