Public transport in the West Midlands including Midland Metro could be in line for a major boost after an agreement in principle between business leaders and local councils over using business rates. The seven councils which include Birmingham City Council want Government approval for the plans which would see the set-up of an Accelerated Development Zone (ADZ) with rates from new businesses within the area going direct to the Councils rather than central Government.
It is reported in the Birmingham Post that up to £500 million could be raised from this plan with the Councils able to borrow against a guaranteed income stream for 25 years.
The plan has the backing of the local Chamber of Commerce and the regional development agency and includes Councils from Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton. Pricewaterhouse Coopers have been asked to prepare a submission to the Government.
Proposals which could be funded through this fund would most likely be those which would unlock land suitable for business, commercial and industrial development. For Midland Metro this could include the Black Country extension and the extension from Snow Hill to New Street and onwards towards Birmingham Airport and the NEC.
Cllr Mike Whitby, leader of Birmingham City Council, said: Whilst other cities are developing their own proposals ours is the only one on the scale of a city region. Our plans cover a range of transport infrastructure projects that would support economic growth on a west-east axis across the city region. The concept is based on evidence from Chicago and our plans cover a range of transport infrastructure projects that would support economic growth across the city region.
Source: Birmingham Post