The Forum of Private Business has accused the government of ignoring the needs of small companies in its decision to allow the introduction of a congestion charging scheme in Manchester.

The secretary of state for transport, Ruth Kelly, announced that the government would provide £1.5bn for public transport improvements to the region with the remaining £1.3bn to come from the charge.

But the FPB is concerned this will hit small business owners at a time when many are already struggling to make ends meet and complained that they had not yet been adequately consulted about the plans.

"The concerns of smaller businesses were simply not considered," said the FPB's campaigns assistant Jane Bennett, who is also a resident of Didsbury, Manchester.

"There has yet to be a voice to represent the majority opinion of smaller firms which is that this is disproportionate tax that they will struggle to pay."