A city that introduced Britain's first congestion charge is applying for funding to examine an extension to the scheme and drive traffic out of its jammed centre.

A £2 charge was introduced three years ago for motorists entering a medieval street in Durham on the approach to its cathedral and castle.

The scheme, which preceded London's congestion charge by five months, has been seen as a success and has reduced traffic levels on narrow Saddler Street by 85 per cent and increased pedestrian use by ten per cent.

Now, council planners have applied for government funding to study bringing in more charges to tackle the problem of traffic passing through.

Plans for a city centre bypass have not been realised and its roads are often clogged up with through traffic that has no alternative route.

Durham County Council highway chiefs said extending the congestion charge would be part of a package of traffic and transport schemes to manage the problem.

Council leader Ken Manton said it was essential for Durham's viability that the problem was tackled.

He said: "Congestion charging could be the important tool that allows us to produce a truly efficient and inclusive transport network and allows continued quality of life.''

He said cash for a feasibility study would be used to gain public acceptance for it, and to reassure people it was not simply a money-making exercise for the council.

Mr Manton added: ''It is equally important for people to know that we are currently looking to investigate possibilities rather than firm-up proposals, and that those investigations will include the fullest possible public consultation.''

The council has applied to the Transport Innovation Fund for half the £600,000 needed for a study that would look at two proposals.

The council could bring in a single toll on the A690, which passes through the centre, with alternative routes introduced.

It will also investigate introducing a congestion zone, similar to London's, around the city centre, with better park and ride facilities and public transport.

Mr Manton said: ''If our bid is successful, it will help us to review whether a viable and practical scheme can be developed and explain which of the two options would bring the greatest benefits to the people of Durham.''

He said the findings could help other gridlocked cities.

''If we can continue to show we are willing and able to successfully tackle those problems by introducing radical and innovative solutions such as congestion charging, it could create the way forward for historic towns throughout the rest of the country,'' he said.

Five authorities in Tyne and Wear have also requested Government cash to look at road charging.

They are: Newcastle, Gateshead, Sunderland, North Tyneside, and South Tyneside councils.