Manchester councils have voted in favour of a congestion charging scheme and could introduce pay-as-you-go technologies such as tag and beacon by 2012.

The 10 local authorities voted in favour of submitting a bid for transport funding, which is dependent on the introduction of road pricing trials.

But two councils opposed the bid, which could spell the end of the scheme before it begins as the government will not force councils to adopt road charging.

Under the scheme, drivers will pay a deposit for an electronic tag, which will monitor vehicle journeys on 15 main routes in to Manchester city centre.

The council is proposing two charging areas, one at the M60 and another closer to the centre. Entering the outer cordon would cost drivers £2, with an additional fee of £1 to drive into the city.

The Association of Greater Manchester Authorities must now bid for some of the government’s £1.2bn Transport Innovation Fund, which would be spent on road pricing technologies and improvements to the public transport system.

Bids must be submitted by 31 July.