The British Retail Consortium (BRC) is welcoming indications that local authorities will be denied the opportunity to use local road charging schemes as a general revenue raiser.

The BRC said the Government was right to use its draft Local Transport Bill, which has just been published, to compel councils to plough road-tax revenue directly back into upgrading public transport.

The consortium warned that, without proper investment in public transport, road user charging could lead to ‘tumbleweed town’ centres.

The BRC also said retailers would be pleased the bill seems to insist on ‘interoperability’, saying the last thing retailers want is for delivery staff and customers to face a myriad of incompatible schemes across the country.

BRC director general, Kevin Hawkins, said: “Without the law forcing local authorities to use charging revenue for transport improvements it would become an, all too tempting, cash-cow for funding general council spending. The bill also appears to insist local schemes must be compatible.

"The last thing retailers want is delivery drivers and customers having to understand and comply with a myriad of different regimes in different towns.”