BUSINESS leaders and politicians remained split down the middle after the government's announcement.

Andrew Simpson, managing director of Peel Holdings and chairman of the anti-charge Greater Manchester Momentum Group, said: "The congestion charge will be yet another burden on ordinary people."

But Ken Knott, chief executive of Ask Developments and founder member of the pro-bid United City group of businesses, said: "Once again we are leading the way in securing our city region's economic future and our position on the international stage. We must ensure that we have the foresight and courage to accept the massive public transport investment that has been offered to us."

Andrew Stokes, chief executive of Marketing Manchester, said the decision would `enhance our reputation as a modern city'.

Paul Simpson, managing director of tourist board Visit Manchester, said better public transport would cut traffic in the city, improving its appeal to visitors.

Angie Robinson, chief executive of Greater Manchester Chamber, said businesses would welcome the injection of cash but called for a `serious debate on whether the package on offer meets the needs of the wider business community'.

Theresa Villiers, Shadow Secretary of State for Transport, accused the government of `bullying' Greater Manchester into the congestion charge.

But Stephen Joseph, of the Campaign for Better Transport, said: "Opponents of the scheme seem to ignore the fact that Manchester suffers from congestion now and this is likely to get worse, with real impacts on people and businesses. They have produced no positive ideas for tackling this congestion."