Instead the Government will look to carry out road toll experiments in Cardiff and Cambridge, according to the magazine Transport Times.

The news comes after Centro and the West Midlands seven metropolitan councils published a report calling for three new taxes on motorists and up to £4billion for investment in the Midland Metro and other public transport improvements.

The main tax proposal is for up to nine congestion zones around the big town and city centres or for one zone stretching from Wol-verhampton to Coventry. The third option is for a pay-as-you-drive satellite-based charging system which could cost £1.30 a mile.

The report, Gridlock or Growth, also called for a £1-a-day extra car parking tax and a tax on every job, costing employers about £170 per person.

But it seems ministers are now alarmed by the demand for up to £4 billion of investment in return for the new taxes. They have taken fright at similar demands being made in Manchester, which has also been suggested for a congestion charge pilot scheme.

Instead, they are now reported to be looking at much cheaper options in Cambridge – where the city centre is already largely pedestrianised – and in Cardiff.

Meanwhile, Centro is to consult 250 businesses on its congestion charge plans following a survey which showed more than 90 per cent of firms felt they were never asked their views on transport policy.