The Government’s delay in making a decision on whether the Midland Metro network can be extended is costing the taxpayer £500,000 a week, it has been claimed.

The public transport body Centro is refusing to be drawn on the exact cost of the delay, but has admitted inflation will put up costs for the proposed expansion from Wednesbury to Brierley Hill, and on to Birmingham city centre from the Snow Hill terminus.

A decision on the project should be made later this year when the region’s congestion charge has also been debated.

The business case was submitted to the Government in July.

But three months later junior transport minister Tom Harris told MPs that the earliest that conditional approval could be given was late this year or early next years.

The cost of the scheme is already expected to be £430 million but that figure rises with every week that the decision is delayed.

Members of the West Midlands Business Transport Group believe the cost could be rising by as much £500,000 a week, for every week the Government lingers on the decision.

Centro spokesman Mik Barton said: “The building costs are just like anything else – the longer we wait the higher the price.

“That’s why we’ve been putting great effort in to advance preparations so as soon as approval is given we can get on and build.”

Centro has already raised £50 million in private finance for the scheme but the government must pay three quarters of the remaining cost.

The Government is delaying its decision because it must also consider a green paper entitled Gridlock or Growth, which could lead to a congestion charge being introduced in the Black Country.

Mr Barton said: “Clearly the two schemes are related so the Government must look at them in relation to each other, although the extent to which one decision affects the other is not precise.

“But we are confident that the proposed tram extension will be given the green light later this year.”

By Transport Reporter Daniel Pountney