A suspicious package which ground part of Birmingham city centre to a halt for five hours as roads were closed and trains suspended is believed to have been a ‘malicious hoax’ police have said.

The package was found at the Refugee Council building in Lionel Street at 10.15am yesterday.

Dozens of officers and the army bomb disposal unit were in attendance and a 300 yard exclusion zone was set up. However, examinations have revealed it was not harmful and posed no risk.

Police have now not ruled out the hoax was racially motivated and an investigation has been launched.

The package sparked a major security alert which saw nearby businesses evacuated. A 1.2 mile stretch of the Birmingham Fazeley Canal between the National Indoor Arena and Aston University was also closed by British Waterways on the the advice of police.

Police also closed Lionel Street, Constitution Hill and Livery Street as a precautionary measure.

Kerrang Radio in Lionel Street was among businesses to be evacuated.

James Walshe, aged 34, programme manager, said staff were first evacuated to St Paul’s Church and then to a pub. The station was switched to auto pilot from London.

A statement from West Midlands Police said: “A thorough investigation will now begin into what we believe to be a malicious hoax.

Anyone with information should contact force CID on 0345 113 5000.