Funding to improve Manchester's public transport system relies on a 'yes' majority in next month's congestion charge vote, it has been stressed.
"If the vote is 'no', there will be no central Government funding," Transport Secretary Geoff Hoon told The Times.
When Ruth Kelly announced the cash in June she said that funding for improved public transport was part of a deal that included piloting a congestion-charge.
Under the proposed road-pricing scheme, motorists in Manchester would be charged up to £5 a day to enter the city centre.
Hoon said that there would be plenty of other cities looking to pilot the scheme should Manchester reject it.
Nigel Humphries, spokesperson for the Association of British Drivers, said: "The Government is holding a gun to Manchester's head.
"They know congestion charging is unpopular, but they are trying to introduce it by the back door by picking on a city which has been trying for years to get the money to expand its tram system."