Cost of Wednesbury to Brierley Hill Metro extension rockets to £650 million

Now the Express & Star can reveal the projected final cost is likely to be £650m. The figure is revealed in private papers set to be discussed during Friday's West Midlands Combined Authority (WMCA) board meeting.

It comes after transport chiefs admitted they did not have enough cash to complete the line, meaning commuters could be asked to walk, cycle or bus the last leg from the Merry Hill Centre to Brierley Hill.

Work is already underway on the first phase of the 6.8-mile extension, which runs from the Great Western Street stop in Wednesbury to Dudley town centre.

Due to a funding shortfall the remainder of the route has now been split into three phases, with the section between Waterfront and Merry Hill requiring funding from Dudley Council.

The final stretch onto Brierley Hill is currently unfunded.

A report to the WMCA board said that a new business case for the scheme is being drawn up to reflect "the scale of cost increase".

Funding for the line includes £60m from the Department for Levelling Up and other cash from the City Region Sustainable Transport Settlement (CRSTS) grant.

However, both streams are dependant on the WMCA persuading ministers the scheme represents value for money.

Setting out the key risks to the scheme, the report says the new business case will need to factor "reduced demand for Metro travel as a result of a post-Covid travel patterns and the "emerging realism of wider economic benefits" associated with the extension.

"The business case will need to reflect a viable funding model for the scheme and will likely face some form of Government scrutiny," the report says.

West Midlands Mayor Andy Street has insisted the line will be completed in its entirety.

Meanwhile the 700-metre Wolverhampton city centre Metro extension – which is £11m over budget and has been delayed by years – is finally set to open later this month.