West Midlands metro extension ‘extremely likely’ to be delayed or scrapped due to lack of cash

A planned Line 2 for the tram system could go no further than Dudley town centre, according to the borough’s local authority

A West Midlands Metro tram in front of Birmingham Town Hall in Victoria Square. The system currently has one line, running between Birmingham and Wolverhampton (Getty Images)

A planned extension to the West Midlands Metro is "extremely likely" to be "delayed or withdrawn" due to a lack of funding, a local authority has warned.

Line 2 of the city region's tram system is meant to link Birmingham and Wolverhampton to Dudley and Brierley Hill in the south west of the conurbation.

But in a report released this week Dudley Metropolitan Borough Council said a backdrop of inflation and rising costs meant the line was likely to go no further than Dudley without extra money – which is yet to be found.

The news that England’s second city could be left with a half complete metro line is the latest blow to government promises to “level-up” areas outside London with investment.

The government was last year accused of “betrayal” after it decided to scale back plans for a new high-speed railway linking cities across the North of England.

Dudley council's risk register says there had been "a significant increase in material and operational costs and difficulties in obtaining additional funding" for the West Midland Metro Line 2 scheme.

Bosses are confident that the under construction Line 2 has the funding to continue to Dudley by 2024, roughly half its intended length – but there is no longer enough cash to take it further.

The West Midlands Combined Authority said in a statement that it was "actively seeking" additional funding to allow the line to continue to Brierley Hill. A third proposed phase taking the line to Stourbridge is yet to be programmed.

The extension was expected to cost £449million when it was approved in 2019. Costs have since increased by 22 per cent to an estimated £550million.

Dudley council says it is "absolutely committed" to building the extension and working with WMCA to find the extra cash.

West Midlands mayor Andy Street said over the summer that the extension to Brierley Hill was "not in danger".

The scheme was marked for "acceleration" in Liz Truss and Kwasi Kwarteng's September mini-budget, raising hopes of a bail-out – but no actual cash was committed before Ms Truss resigned and was replaced by Rishi Sunak.

Line 1 of the Midland Metro, the system’s only existing line, runs between Birmingham and Wolverhampton. Line 2 would meet Line 1 at Wednesbury and continue to Dudley, and then Brierley Hill, with a further proposed extension to Stourbridge.

A West Midlands Combined Authority spokesperson said: “The WMCA Board has reaffirmed its commitment to delivering the Wednesbury to Brierley Hill Metro extension.

“Construction is continuing on the route between Wednesbury and Dudley town centre, which will be ready to open as planned during 2024. This will better connect Dudley and communities along the route to the wider West Midlands.

“A combination of factors including a rise in construction and energy costs, at the same time as a reduction in the farebox income as a result of the Covid pandemic, means the extension to Brierley Hill will be completed in a second phase.

"The WMCA and partners will continue to actively seek funding and develop additional funding mechanisms to allow the construction of this second phase at the earliest opportunity.

“The Metro is a vital transport network for the West Midlands, connecting our communities to opportunities across the region and we are excited to deliver a network that will benefit thousands of people.”