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The Tories and Liberal Democrats have clashed over the possible introduction of a spy in the sky road-pricing scheme. However, both parties believe charging road users could level out the playing field between British hauliers and their foreign competition.

Speaking at Tuesday's Annual Road Pricing Conference in London, Liberal Democrat transport spokesman Norman Baker said: "We are in favour of road pricing to reduce carbon emissions.

"We want more modal shift onto rail and would  implement a lorry road user charge based on emissions and distance," he said. "A per mile charge would even out the unfair playing field with foreign competitors who fill up on the continent."

However, Stephen Hammond, Conservative shadow minister for transport, argued: "We are against a spy in the sky as it would involve a mass IT programme and our previous IT practice has been poor."

He said lorry user charging is not something the Conservatives would like to introduce but he highlighted that "non-UK hauliers would have to pay to use UK roads".

"Foreign competition is a real problem for British hauliers too many family-run businesses are failing," said Hammond.

Unlike the Liberal Democrats, the Conservatives claimed that revenue would be pumped into building roads, and Hammond added that "VED would be scrapped for all vehicles if road pricing was introduced".

Baker said under road pricing "lorries would still pay a minimal VED".