Bus, train and tram passengers in the West Midlands are set to benefit from an investment of £175 million in the region’s transport networks this year.

The annual budget for the Passenger Transport Authority is expected to be agreed at a meeting on Monday (7 February).  The spending has already been approved by bosses at the West Midlands’ three city and four borough councils.

Council leaders agreed a three-year plan with the PTA, which sets the policy for public transport promoter Centro.  It means the amount paid by the city and borough councils to fund the promotion and development of bus, rail and tram networks will increase by around the level of expected inflation at 2.5 per cent a year.

Funding was previously agreed on a year-by-year basis and the new approach has been welcomed by PTA Chairman Cllr Gary Clarke.

”This three year approach to our budgeting will allow investment in the expansion of Midland Metro and other improvements to public transport across the West Midlands,” he says.

The total levy paid by the districts for 2005/6 will be £125 million.  The funding pays for concessionary travel schemes for the elderly, blind and disabled, and children, provides for special needs transport, subsidised bus services, and also pays to run bus stations and park and ride sites.   It also covers other transport investment in bus, rail and the Midland Metro.

Council leaders and the PTA also agreed that half of any savings made this year will be set aside for funding future Metro development.  The rest of the savings, predominantly made because elderly people are making fewer trips with their concessionary travel passes, will be allocated to the seven districts to help keep down council tax in their areas.

Update on Monday 7 Feb: The PTA meeting agreed the budget and levy as set out above.