The West Midlands is lagging behind Manchester in developing road pricing proposals which could provide billions of pounds of funding for public transport.

Greater Manchester is to unveil a controversial road pricing scheme tomorrow and launch a public consultation before submitting its plans to the Government.

But the West Midlands is planning to begin a full consultation in August - after it submits a bid to Ministers.

The contrast between the two regions emerged as civic leaders were quizzed during an inquiry in the Commons.

Gwyneth Dunwoody, chair of the Transport Select Committee, warned the West Midlands other areas could "grab" the funding on offer.

She said: "You are going to have to move a bit. Other authorities are not going to wait around while you do your research."

But speaking afterwards, a spokesman for the Midland authorities said: "What's important is not competing with Manchester, but getting our transport system right."

The committee was examining Government plans to introduce road pricing pilot schemes.

Councils which agree to run a pilot will receive a share of a £200 million-a-year fund to improve public transport.

Witnesses summoned to give evidence at Westminster included David Bull, Birmingham City Council's head of transport, and Geoff Inskip, chief executive of West Midland passenger transport authority Centro.

Also giving evidence was Sir Richard Leese, leader of Manchester Council.

Tomorrow, Sir Richard will meet the heads of authorities in Greater Manchester and agree proposals for a specific road pricing system which will charge motorists by the mile.

He told the committee the Manchester scheme would raise £1.5 billion annually for public transport improvements. It would also create an extra 30,000 jobs by reducing congestion and giving local businesses a boost.

Sir Richard said: "We have identified congestion charging as part of an appropriate package is something we will need to do."

There would be a two-month consultation before the July 31 deadline, he added.

However, the West Midlands representatives said local authorities in Birmingham, the Black Country and Coventry had not yet decided whether road pricing was desirable.

Mr Bull said local authority leaders had not decided whether to submit a bid to the Government.

Mr Inskip added: "We are going to do our public consultation after July."

However, there was "significant discussion" with businesses and within the media, he said.

He also warned the Government the West Midlands would not accept road pricing until after improvements in public transport were made, including investment in New Street station and the Midland Metro.

"On the best projections we have, we are looking at a five-year period of public transport investment before pricing commences."