Wolverhampton City Council formally joins West Midland Combined Authority

The move was rubber-stamped at a meeting of the Labour-led full council earlier this week.

Council Leader Roger Lawrence said it was 'very positive for the city' and the decision was also backed by opposition Conservative members.

Councillor Lawrence said: "This is positive for the city of Wolverhampton. This is positive for the entire region and will help us to be globally competitive.

"It will help us be competitive for investment with some of the best in the world."

The Government says the combined authority will bring up to £8 billion investment to the region, as well as giving the area more control over housing and transport under an elected mayor.

But it has emerged that each metropolitan district council involved in the scheme has paid out around £500,000 to cover 'initial costs', exceeding the original £300,000 contribution agreed by each council last year.

At this week's meeting Councillor Lawrence added the extent of the Mayor's powers is subject to a further report which will be put before the council in May.

Conservative councillor Paul Singh, said: "We agree to the principle of this. We agree we have to be around the table to get the best out of this."

Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton have all shown their support to becoming full members, while three Local Enterprise Partnerships and various district councils will be involved on a non-constituent basis.

The metro-mayor will be elected for the region in 2017 and the post is expected to hold a major influence over a host of strategic policy areas, including transport, housing and health services.

Dudley councillors formally agreed to join the authority on Monday night with Council leader Pete Lowe claiming it would mean working together to continue to promote the views of the people and would not take away any powers from the local authority.

In February it emerged the M6 Toll could be run by a partnership between the Government and the authority.

WMCA bosses say they are looking into the possibility of taking over the running of the road but admitted they need Government support. The road has been put on the market by the banks that own it in an attempt to recoup some of the £1.9 billion they are owed.

Sandwell Council leader Darren Cooper, who sits on the WMCA shadow board, has written to Transport Secretary Patrick McLoughlin in a bid to thrash out a deal over the M6 Toll.