The Government has given the green light for a congestion charging scheme for drivers entering and leaving the city.

Transport Minister Ruth Kelly has backed plans for a two-ring scheme, charging up to £5 at busy times from 2013. It would cover from 7am to 9.30am and 4pm to 6.30pm during weekdays.

But Derbyshire and Nottinghamshire Chamber's chief executive, George Cowcher, said: "This will have implications for members in places such as Buxton, Whaley Bridge, New Mills and Glossop, who have customers within the M60 'outer ring' boundary of the scheme.

"The promise is that there will be improvements to public transport before the charge is introduced but for many small to medium sized enterprises in particular, cars are central to operations; they are the most convenient and often the only viable option."

The Government has provisionally made £1.5bn backing available for the scheme, contributing to a total of £2.8bn to fund transport improvements, the rest coming from councils within Greater Manchester.

Manchester is set to become the first major British city outside London to adopt large-scale congestion charging, though the move will be subject to public consultation throughout Greater Manchester and a vote later in the year by the Association of Greater Manchester Authorities (AGMA).

AGMA is promising significant improvements to bus, tram and rail services before any charge is introduced.

However, the authorities of Stockport, Trafford and Bury are no longer supporting the bid. Councillors in Bolton say they will hold a public referendum.

Mr Cowcher said: "This charge will cover a huge area and, according to opposition groups, will cost some commuters up to £1,200 per year.

"Lower paid workers and businesses already struggling to keep their heads above water will not welcome this development.

"While we welcome increased spending on transport infrastructure, there must be more equitable ways of funding it."