West Midlands Transport Budget Hole Dramatically Reduced, Says Combined Authority

The West Midlands Combined Authority (WMCA) has substantially closed a major funding gap in its transport budget, reducing what had been a projected £119.8m shortfall for 2026/27 to £38.3m, according to statements made at a recent board meeting and reported by the BBC.

Officials told board members that a package of measures introduced over recent months has significantly improved the financial outlook. These steps include a 3% rise in the transport levy paid by the region’s seven constituent councils and an increase in metro fares, both approved at the same meeting. The authority has also delivered operational efficiencies and made use of permitted financial flexibilities to shift some capital funding into revenue budgets, helping to ease pressure on day-to-day spending.

West Midlands mayor Richard Parker said the progress gave the region a far more stable footing:

“I believe, with the fantastic work of officers, we now have a position where we can be confident the budget will balance and allow us to focus on making the difference our communities need. The government can have confidence in the way we plan and invest in our transport system.”

Birmingham City Council leader John Cotton welcomed the development, stressing how long-standing the financial challenge had been:

“I want to acknowledge how important this moment is in eliminating a deficit that has sat in this budget for a very long time.When I joined the Combined Authority Board in May 2023, it felt like every meeting was dominated by this seemingly immovable issue. The progress made shows there is now grip and control of the finances — and that’s no mean feat.”

The WMCA said further work will continue into next year to close the remaining gap entirely.