A cabinet minister has confirmed that the Government is expecting local businesses and councils to stump up the major part of the cash for major projects like the proposed extensions to the Midland Metro.

However, Communities and Local Government Secretary Hazel Blears admitted that multi-million pound projects like the Metro extension might not be achievable without central Whitehall funding.

Local authority chiefs effectively forfeited cash from the Department of Transport’s transport investment fund by throwing out plans for congestion charging in the Black Country and Birmingham.

West Midlands minister Liam Byrne appealed to the region earlier this week to look for other ways to finance the Metro and other much needed transport infrastructure, including supplementary business rates, borrowing and land sales.

She told journalists one possible way of funding was through charging a supplementary business rate.