Alastair Darling has announced plans to encourage congestion charging outside of London.

A new transport innovation fund is to be established in next year's budget, beginning at about £200 million and rising to £2 billion within a decade.

The money will be distributed to councils which adopt "imaginative solutions" and can be spent on buses, light rail and traffic management.

Addressing a Local Government Association conference, the transport secretary said: "If we do nothing, congestion will only get worse."