The West Midlands Combined Authority (WMCA) has made significant progress in addressing a major budget shortfall in its transport network funding. Originally projected to be nearly £120 million for the 2026/27 fiscal year, this deficit has now been trimmed to £38.3 million, with further reductions expected.
Finance officials at the WMCA credited a combination of efficiency improvements and strategic financial adjustments for the progress. Notably, capital funds were flexibly reallocated to cover revenue needs, helping to close the gap.
Key decisions made by the WMCA Board contributed to this positive turnaround. These included a 3% increase in the Transport Levy charged to the seven local authorities within the region and a rise in Metro fares, both approved during the same meeting.
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West Midlands Mayor Richard Parker expressed confidence in the financial direction, stating, “Thanks to the excellent work of our officers, we now have a balanced budget that allows us to focus on making a meaningful difference to our communities. This also gives the Government assurance in our planning and investment for the transport system.”
Birmingham City Council leader John Cotton echoed the significance of this achievement: “Eliminating a longstanding deficit is a critical milestone. Since joining the Combined Authority Board in May 2023, it often felt like this issue was insurmountable, so this shows real financial control and leadership.”
However, concerns remain among some local authorities. Walsall Council leader Mike Bird highlighted the challenges posed by the 3% Transport Levy increase, which adds around £400,000 in costs for Walsall alone. He requested a deferral on the increase until January, when council funding settlements are expected, to better assess financial impacts.
Mayor Parker responded that deferring the levy would require finding alternative funding cuts, likely harming transport services. Bird acknowledged this but expressed willingness to cooperate, congratulating the WMCA’s Head of Finance Claire Nye on the budget management amid these challenges.
This collaborative approach marks a pivotal moment for the West Midlands as it works toward sustainable and effective transport funding.