COUNCIL leaders say they would fight any move to make motorists in Greater Manchester the first in Britain to face a "pay-as-you-drive" tax.

Cllr David Wilkinson, executive member for environment at Bolton Council, said he believes the introduction of such a pilot scheme in the conurbation could have serious consequences for the local economy.

But he said he was not opposed to the principle if it was introduced simultaneously across the country.

The charge on the busiest roads during rush hour could be up to £1.34 a mile while trips on quiet rural lanes could cost 2p a mile.

The Department of Transport confirmed Greater Manchester was in the running for the pilot which, if successful, would be introduced nationwide.

Under the scheme, tax on fuel and road tax would be replaced by the levy which would be monitored by a satellite navigation system.

Black boxes would be fitted to each car to keep track of how many miles each vehicle had travelled.

Ministers hope the scheme would encourage motorists to think more carefully about how they use their cars.

Cllr Wilkinson described the proposals as an "interesting contribution to the debate."

But he added: "If this was introduced in Greater Manchester there could be dire consequences for the economy and it would play into the hands of our competitors.

"That said we need to look at ways of encouraging people to use other forms of transport and this is an interesting development."

Greater Manchester Transport chiefs have warned they would look carefully at the proposals but warned they would expect a clear commitment to funding for the Metrolink tram extension before agreeing to the pilot.