Each of the 10 largest urban areas in England has set a target to limit the increase in congestion on its busiest roads. The West Midlands, London and Manchester alone account for two thirds of all the traffic in the 10 urban areas.

Recognising the scale of the congestion problem to be tackled, secretary for Transport Douglas Alexander said: "The access to our cities is key to their economic growth and success. It is therefore important that local authorities take responsibility for addressing the problem of road congestion, and the impact on journey times caused by the increasing numbers of journeys being made.

Congestion is expected to rise over the next 5 years (to 2011) as demand for transport due to economic and population growth, outstrips the capacity of our transport networks. Accounting for this, the Government target is that the West Midlands should ensure journey times increase by no more than 5% over this period. This target reflects the fact that the West Midlands has reached a 'tipping point' where each extra vehicle on the roads has an increasingly negative impact on traffic flows.

The CBI has estimated that congestion in the West Midlands is currently costing the local economy £2.2 billion a year and business surveys show that 73% of businesses now rate traffic congestion as a serious problem. 

The West Midlands is currently undertaking its largest ever study into congestion and potential innovative solutions to the problem. The Government-funded £1.2 million pound congestion study, which started last year, is being conducted by a team of independent consultants.

The West Midlands is at the forefront of national efforts to tackle congestion. The feasability study is progressing well with its exploration of its pros and cons of different solutions in a rigorous, evidence-based manner.

Transport Secretary Douglas Alexander has again signalled his intention to support a national road pricing scheme. In a letter addressed to Commons leader, Jack Straw in July, he proposed new powers to introduce road user charging schemes on the national trunk road network. The Government also wishes to ensure that any local schemes to tackle congestion meet national standards to prevent the confusion that would result if different cities chose to adopt different schemes 

A crucial agreement detailing the private sector's largest funding contribution towards the Midland Metro extension has been signed.

Westfield, which owns the Merry Hill development, has made a £35.6m contribution towards the new tramlines through the Black Country - the largest single private sector contribution to any UK light rail scheme.

The extension has already been given the green light by the Government, and regional transport body Centro-PTA has submitted what it describes as a confident and robust business case for financial approval by Ministers.

The £268m project will extend the existing line from Wednesbury for 11km through Dudley town centre and Merry Hill Centre. It is hoped that the 17 new stops, larger trams and four park and ride facilities will provide a real boost to the accessibility of Birmingham city centre and the Black Country and help to ease congestion on the roads.

Three quarters of the cost would come from Goverment and current studies show that it will get a minimum double return on investment. The rest of the money will come from local contributions, such as that given by Westfield.

Midland Metro line one, between Wolverhampton and Birmingham via West Bromwich, caters for over five million passengers a year and has become the region's most reliable from of public transport.