Sir Richard Leese has warned that calls for an increase in business rates could seriously undermine efforts to secure investment in the northwest.

The Manchester city council leader was speaking in response to Greater Manchester Momentum Group's (GMMG) proposal for a 2p increase in the business rate as an alternative to the Transport Innovation Fund.

In a leaflet, GMMG said this could generate as much as £600 million, which would be used to pay for public transport investment without the need for a congestion charge.

But Sir Richard said this is not a serious alternative to £3 billion of investment in public transport.

"This proposal is an indiscriminate tax on business irrespective of whether or not they contribute to congestion," he stated.

"It could seriously damage the health of the region's economy if such a policy was put in place."

More than two million residents across Greater Manchester have received a brochure explaining the advantages of a congestion charge and investment in trains, buses and trams.

The public will have their chance to vote on the proposal in a referendum later in the year.