NORTH Lincolnshire officials are agonising over a government ultimatum forcing them to choose between scrapping bridge tolls and upgrading roads.

Phillip Hammond, Secretary Of State For Transport, has told North Lincolnshire's leaders they must choose between upgrades to the A160 and A63 and the scrapping of the Humber Bridge tolls.

The demand has sparked outrage from campaigners and business leaders, who say a bright economic future for the region depends on both projects getting the go-ahead.

Ian Kelly, chief executive of Hull And Humber Chamber Of Commerce, said he hopes the Government will listen to arguments for bankrolling both projects.

He said: "We had a very productive and insightful meeting with Mr Hammond as Shadow Chief Secretary last year and much appreciated his candour. We did, of course, also highlight spending on transport in Yorkshire and particularly the Humber has been among the lowest in the UK for a long period of time.

"We, therefore, now hope as transport secretary he will take this into account when looking at our three priorities of writing off the Humber Bridge debt and upgrading Castle Street in Hull and the A160."

Mark Kirk, leader of North Lincolnshire Council, also feels the choice between tolls and roads is far from black and white.

He said: "The two road schemes are priorities but there is no guarantee they will go ahead.

"Under the new Government, both are under review and therefore there is much uncertainty. So, even if we drop the tolls campaign, it will make no difference to the two road schemes.

"The only way we will get prosperity on both banks is if we get the tolls abolished or reduced to a £1 toll.

"Conservative MPs on both banks have been campaigning against the tolls. Surely they are not going to accept this nonsense."

A report published by independent transport consultants Colin Buchanan suggested scrapping or cutting the charge would boost the region's economy, and was reviewed by the previous Secretary Of State For Transport, Sadiq Kahn.

That research showed a Government investment of £170 million would be enough to scrap the tolls or cut them to £1, depending on the legal framework used.

According to the report, the investment would reap a £1 billion boost to the local economy.

Jenny Walton has been campaigning against the Humber Bridge tolls for nearly a decade. She has urged the region's leaders to remember the impact on local residents in any decision that is made.

She said: "It is so important for people who cross the bridge regularly for work or for hospital appointments to have the tolls scrapped and, as far as we're concerned, this needs to happen as soon as possible.

"It shouldn't need to be a choice between one thing and another.

"Both are important to the region and will be paid for through the increased taxes the prosperity would create.

"It concerns me that this is just another attempt to postpone making a decision when this region needs swift action to be taken immediately."

David Gemmell, chair of the Humber Bridge Board, confirmed he would be seeking a meeting with the Secretary Of State to discuss the proposed scrapping of the tolls.

He said: "We would need to meet with him to discuss the finer details before we can say what impact this would have on the Humber Bridge.

"We are expecting a meeting to be arranged shortly and I will be contacting the department to make sure this happens as soon as possible."

The A160 upgrade, part of a £331 million package to renovate the south Humber bank, was announced in March.

The plans include turning the A160 into a dual carriageway, alongside similar moves to upgrade the A63 in Hull and support for a better A18-A180 link road.

The road currently carries 13,000 vehicles a day, a figure which could potentially double by 2030 if new developments are given the go-ahead.

Able UK development director Neil Etherington said the firm was keenly awaiting the outcome of planning proposals for the south Humber bank development but wished to leave discussions over potential road upgrades in the hands of North Lincolnshire Council.