Transport budget black hole 'mostly plugged'

West Midlands Mayor Richard Parker said he believed the network was in a place where there could be confidence the budget will balance

A huge black hole in the budget for the West Midlands transport network has been mostly plugged, finance bosses have said.

A West Midlands Combined Authority (WMCA) spokesperson said a projected £119.8m gap in the 2026/27 budget had been reduced to £38.3m, with further measures to be put in place to cut it further next year.

Members of the WMCA Board were told a series of measures already taken had helped claw back the deficit.

An agreement to increase the transport levy that each of the seven local authorities has to pay by 3% and a hike in metro fares, approved at the same board meeting, has aided the reduction.

Generating efficiencies and using flexibilities to transfer capital funding to revenue had also helped reduce the deficit.

West Midlands mayor Richard Parker said: "I believe, with the fantastic work of officers, we've now got ourselves in a position where we have confidence where we have a budget that will balance and allow all of to focus in making a difference to our communities that we need to make.

"The government can have confidence in the way they plan and invest in our transport system."

Birmingham City Council leader John Cotton added: "I want to acknowledge how important this moment is in eliminating a deficit that has sat in this budget for a very long time.

"I joined the Combined Authority Board in May 2023 and it felt like every single meeting was concerned with this apparently irresolvable issue and I think this illustrates there has been a grip and control of finances and that's no mean feat."

Walsall Council leader Mike Bird is concerned about the increase in the transport levy

Walsall Council leader Mike Bird said he was concerned about the 3% increase in the transport levy, which would raise an additional £3.7m for the Combined Authority.

He said Walsall, like all other councils, hadn't received their settlement and an extra bill of around £400,000 for them could be "challenging".

Mr Bird asked for a deferral until January when their settlement would be confirmed but Mr Parker said not supporting the increase would mean other sources would have to be found to cut the gap and this could be detrimental to services.

Mr Bird said: "By that time we will know what our settlement is, and it may very well be we can increase our levy over and above that 3 per cent to fund that transport system you require.

"In the spirit of cooperation I will not push for deferral and in actual fact congratulate [Claire Nye, head of finance] on how the finances have been put together."