Manchester will tomorrow unveil a £3bn plan to become the first place in Britain to charge drivers for travelling on congested roads. The Times. Financial Times

Drivers entering the city centre will have to pay a deposit for an electronic tag that they place inside their windscreen. The tag will be read from roadside gantries along the 15 main routes into the city centre, and payment will be deducted as drivers pass under them.

Initially, there will be two charging points on each route and drivers passing both will pay about £6.

The scheme is expected to generate £118m a year.

Meanwhile, the Department for Transport has tendered for contracts for companies to test the accuracy and reliability of pay-as-you-drive technology.