FOUR out of five businesses in Greater Manchester would vote against the planned congestion charge in a referendum, a major new survey reveals.

And half of the 1,246 companies polled said they would be less likely to invest in the area as a result of road-pricing.

The news will come as a blow to Greater Manchester councils, who are currently involved in a massive consultation exercise asking for views on plans to levy a peak-hour congestion charge of up to £5 a day in return for £3bn of public transport improvements.

Electronic tags would be used to charge people passing through both an outer ring bordered by the M60 and an inner ring nearer to the city centre.

Transport bosses have pledged not to introduce the levy unless it is "acceptable" to both the general public and businesses - but resisted calls for a referendum.

The new independent survey was commissioned by Peel Holdings, one of Greater Manchester's biggest companies and vocal opponents of the proposed charge. Peel own both the Trafford Centre and the MediaCity:UK site at Salford that will house the BBC when it moves thousands of jobs out of London.

Supporters of the proposed charge dismissed the new results as "skewed" because they failed to link road pricing to the £3bn improvement package.

But Andrew Simpson, managing director of Peel Holdings, said last night he "couldn't believe" people would support a charge that would "hamstring" businesses and "drive away" investment.

Effects

"The effects on business across the board would be very painful but it will be too late to attract them back once they've gone," he said.

"This tax is a cause of serious concern to employers and those who drive the Manchester economy. It will hamstring businesses and drive away potential investors in the city.

"We fully support the Federation of Small Businesses' call for a referendum on this issue but I can't believe people will support this tax."

The research was carried out by independent Manchester-based pollsters Aspect Market Research and included 1,246 businesses of all sizes across the city-region. The interviews were with chief executives, directors and managers.

The survey found 80 per cent of respondents would vote against the charge in a referendum. Thirty-five per cent said they would be "much less likely" to invest in Greater Manchester in the future if the scheme went ahead, with a further 15 per cent "somewhat" less likely".

The Association of Greater Manchester Authorities (AGMA) drew up the congestion charge plans as part of a potential bid to the government for money for public transport. AGMA could get up to £3bn for a package include a major extension of the Metrolink light rail system and investment in trains and buses. Ministers have made it clear that without the congestion charge, Greater Manchester's won't get the cash.

An exclusive M.E.N. survey of 1,000 people across Greater Manchester, carried out by independent pollsters in March, found 64 per cent of people thought congestion charging was a bad idea. But 59 per cent said it was a price worth paying for the public transport improvements.

Roger Jones, Chairman of the Greater Manchester Passenger Transport Authority, said: "This particular poll does not reflect reality as it only asks about congestion charges and not about public transport improvements.

"We would of course expect a majority to vote against road charging if it was introduced in isolation, in the way this poll suggests.

"However, a limited, peak time-only congestion charging scheme would in Greater Manchester will ONLY be considered alongside £3bn of improvements in public transport.

Concern

"The feedback we have received indicates that increasing congestion is a real concern for businesses in Greater Manchester, negatively impacting on getting goods to market and staff to work.

"The fact that a substantial minority, 20 per cent of people, are in favour of charging in response to what is really a skewed poll confirms the level of concern among the Greater Manchester public about congestion and environmental issues."

Chris Fletcher, policy director at the Greater Manchester Chamber, said: "We have not yet done a formal survey of our 5,000 members, although we are planning to do so.

"In the straw polls we have done we have heard some pretty mixed views, although not quite as polarised as this survey.

"Some are totally against it and some say it is not too bad and they can see the benefits.

"There has been a barrage of information relating to the planned transport improvements [that would accompany the charge] and some of our members have welcomed those."

Read more about the congestion charge via the links on the right of this page.

Discuss the congestion charge - and other hot political topics - at David Ottewell's blog .