Owners of homes by metro in shock levy

People living in more than 10,000 new homes to be built near new Midland Metro lines in the Black Country could have to pay an extra £2,500 for the privilege.

And companies across the region may also be expected to fund an extra £5 million a year through their business rates prompting concerns from bosses who say they are not "a bottomless pit".

The plans, revealed in a report by transport body Centro, are part of ambitious proposals to raise £210 million to extend the tram system through the Black Country.

The value of new homes could rise if they are built close to new stops, therefore it is suggested developers would have to pay more to build close to lines, making house prices increase.

It would leave a shortfall of only £40 million, just over 10 per cent of what transport bosses originally expected the Government to provide for extensions into Wolverhampton, Birmingham and out to Brierley Hill.

Hopes of extending the Metro were thrown into disarray in March when the Department for Transport refused to provide the cash unless the councils of the West Midlands forced a trial congestion charging scheme on drivers.

Since then public transport authority Centro and the Black Country Consortium have been working to find alternative funding sources.

Centro chief executive Geoff Inskip revealed today how extra taxes would help to pay back loans.

Merry Hill shopping centre owners Westfield have already pledged £36 million, Centro has committed £49.5m and £3m of taxpayers' money has been allocated. It leaves transport chiefs looking for around £250m.

Mr Inskip said £90m would come from developers who would contribute because of the advantages the Metro would offer while £50m would be sought from regional development agency Advantage West Midlands.

A further £10m will come from the owners of 10,700 new properties to be built alongside the Metro by 2026.

Mr Inskip said: "Assuming a supplement of £2,500 per dwelling, a levy could raise over £25m by 2026 if the housing numbers were reached."

Travel Midland Metro, which operates the existing line between Wolverhampton and Birmingham Snow Hill, declined to comment.