THE GOVERNMENT has given the green light to Greater Manchester's £3bn plan to revolutionise public transport -  but only if a controversial congestion charge scheme is introduced.

Transport secretary Ruth Kelly is expected to announce on Monday that her department WILL fund a package of proposals that includes a massive extension of the tram network and huge investment in trains and buses.

In return, Greater Manchester would introduce a peak-hour charging system of up to £5 a day at current prices, based on inner and outer `rings' around the city centre.

The news brings to an end a year-long wait to hear if the government would provide the cash.

It will also spark a bitter political row between Greater Manchester's 10 councils, who will decide whether to accept the deal in a crunch vote before the end of the year.

Split

Businesses and the public also appear to be split down the middle on what is believed to be the biggest economic decision the region has ever faced.

The 10 councils will carry out a three-month public consultation before a crunch vote on whether to press forward.

Current voting rules mean at least seven of the 10 local authorities will have to say 'yes' for the charge - and investment - to go ahead.

Three councils - Trafford, Bury and Stockport - have already withdrawn their support, while Bolton has promised to hold a local referendum.

Greater Manchester's charging scheme would consist of an outer ring around the M60 and an inner ring nearer the city centre.

Vehicles would carry special tags that would register when a ring was crossed. Charges would apply towards the city centre during 7am-9.30am, and out of the city centre between 4pm and 6.30pm.

Scope

The overall charging zone would be 12 times bigger than London's when it was first set up.

The £3bn bid requested £1.2bn from the government's transport innovation fund (TIF), plus permission to borrow £1.8bn more.

That will be paid back over 30 years from the proceeds of the charge.

Sources in the Department for Transport (DfT) have made it clear TIF money would only be made available to areas prepared to bring in congestion-charging schemes.

Ten places expressed an interest - but only Greater Manchester and Cambridgeshire have submitted formal bids.

Greater Manchester intends to use the cash to complete the Metrolink "Big Bang", with lines running to the airport, Oldham and Rochdale town centres, and the Trafford Centre.

Infrastructure

There would also be major investment in buses and trains, as well as hundreds of new park-and-ride spaces and electronic tickets that can be used on all forms of public transport.

Transport chiefs have pledged the majority of the improvements would be in place before the charge was introduced - probably at the end of 2012.

Supporters of the bid claim growing congestion could put at risk 30,000 of the 210,000 new jobs due to be created in the region by 2021.

They say TIF is the only substantial cash available to British towns and cities for major investment in public transport.

Opponents say the charge will drive businesses out of Greater Manchester and into the hands of rivals like Liverpool, Leeds and Birmingham.

An exclusive MEN poll found 64 per cent of people were opposed to the idea of a congestion charge. But 59 per cent said it was `a price worth paying' for improvements to trams, trains and buses. Thirty nine per cent said a charge WOULD change the way they travelled.

A DfT spokesman declined to comment last night on when and if an announcement on the bid would be made.

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