Speaking in the House of Commons on Monday, 9 June, the Secretary of State for Transport, Ruth Kelly, announced that the Association of Greater Manchester Authorities' (AGMAs') bid for the money from the Government's Transport Innovation Fund (TIF) had been accepted.

AGMA will have to raise the remaining £1.3 billion for new bus, rail, tram and cycle links by taxing motorists up to £5 to enter the city centre during rush hour periods. There are two planned 'cordons', one surrounding the city centre and another bordered by the M60 motorway, with an associated charge for crossing and re-crossing each. The FPB is concerned that smaller firms will be most affected by the charge, but yet have not been adequately consulted.

"The concerns of smaller businesses were simply not considered before the TIF bid was put forward by AGMA. Although AGMA argued that the Greater Manchester Chamber of Commerce (GMCC), which was on the test review panel, was representing the region's smaller businesses, its diverse membership means that there has yet to be a voice to represent the majority opinion of smaller firms – which is that this is disproportionate tax that they will struggle to pay," said the FPB's Campaigns Assistant, Jane Bennett, who is also a resident of Didsbury, Manchester.

She added: "Another serious concern is that, so far, AGMA has sought local opinion, not on the issue of congestion charging, but only on whether to bid for funds to improve public transport."

Andrew Ince, of Harrison Ince Ltd, a firm of architects based in Manchester city centre, fears that people will seek employment outside the congestion charging zone and businesses will be forced relocate to other sites.

"The £5 cap per vehicle per day is going to have a massive financial impact on my business. I'm going to have to consider whether or not we stay in Manchester and I am concerned the congestion charge will also affect the value of our property," he said. "There is no balance between the reduced congestion and the additional cost to my business."

AGMA will now hold a further consultation exercise. If there are no significant objections to the congestion charging scheme, it will then bid for conditional approval from the Department for Transport. The FPB is urging the owners of small businesses to reject the plans and ensure that, this time, their views are heard.