Blair hints at national road charges to fund better transport

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The Prime Minister said "targeted charges" would probably be the only way for the Government to fund improvements to the transport system. "In the future, I don't believe you will get consent for general taxpayer-funded massive investment in transport. I think you'll have to do that ... on a basis that spreads the cost," he added.

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However, the Treasury and the Department for Transport are at odds over the issue. Transport ministers believe national road tolls will be palatable to motorists only if cash raised goes to improving the transport system.

Gordon Brown believes ringfencing taxes for a particular cause would create a dangerous precedent.

Pilot schemes will start shortly and the national system could be in place within five years.

However, more than 659,000 people have signed a Downing Street position against it.

According to the AA, Mr Brown already takes £42 billion a year from motorists from vehicle excise duty, VAT, fuel taxes and company car taxes but less than a quarter of that is reinvested in the road network.

The AA said drivers would be more likely to tolerate road pricing if the money raised was ringfenced for transport. But it said the Treasury would have to be "totally transparent" about the finances.

The Department for Transport says that without some form of road pricing congestion will grow by 25 per cent in the next 10 years. However, it stressed that no final decision had been taken.

Doubts remain about the reliability of the satellite technology used to track vehicles and the scheme could cost £60 billion to set up.