A row over whether the developers of Walsall’s multi-million pound ring road are owed more money has not yet been resolved, with council chiefs dubbing the claims for cash “unacceptable”.

Norwest Holst say it should be paid more for its involvement in creating the new road, which was delayed by nearly a year and cost £23million – almost £5.5m more than first expected. Walsall Council’s transport chief Tom Ansell today said the issue had not been resolved.

He added that there was still a chance it may have to be settled by an independent watchdog.

The amount being demanded for by the developer has not been revealed.

Councillor Ansell said: “If it is a proven claim we are obliged to pay but what we have had so far has been considered unacceptable and been rejected, we have had a number of claims dressed up in different packaging which we have refused. We are still in negotiations.

“They have the right of appeal to an independent arbitration but we are not down that road yet and are still in negotiations.”

The original scheme was expected to cost £16.62m and take two years to complete. But by the time it was finished, the cost was put at £23m and it was almost a year behind schedule.

Part of the reason for the delay in the ring road scheme was utility companies, including gas and electricity boards, being unable to carry out work in the town for long periods. Bad weather also affected the scheme.

A report from Steve Pretty, head of engineering and transportation at the council, said: “The contractor continues to contest these decisions, and it is probable the dispute will be taken to arbitration.

“Our advisers are confident the council has carried out robust assessments of the claims and we would have a strong case should arbitration be sought. There are no guarantees.”

A report to the council recently showed congestion had been cut by almost a third on average across the town, with rush hour journeys on the Wolverhampton Road to Pleck Road stretch down by an average of 96 seconds in the morning and 52 seconds in the evening. But some journeys via the new Arboretum junction, were slowing drivers down.