The BBC's new investment in Birmingham has been welcomed by business and community leaders - but they call for more production in the city.

The Post unveiled this morning that the broadcaster was investing £23.5 million and creating 80 jobs , through a a new vision for the city, including a digital centre of excellence.

While the increase has been welcomed, as BBC spending in the region is considerably below most others in the UK, MP Steve McCabe said it was not enough, as more production must take place in the city.

Mr McCabe (Lab Selly Oak) said: “I very much welcome this news by the new Director General of the BBC as a sign of faith that he will keep his word about Birmingham and Midland’s licence payers getting a fairer return on the contribution they make to the BBC.

“I welcome the proposed new jobs and feel it is the beginning of a fresh start in our relationship with the BBC but we still need to see more radio and TV production in Birmingham and we need to grow his idea about the Mailbox so that it becomes an incubator for all the talent available in the area, this includes artists, writers, technical staff and many other skilled young people who really are the future for the BBC.”

More: BBC boss Peter Salmon talks about the investment

Tony Hall, the Director-General of the BBC, today outlined the first phase of plans to increase the BBC’s activity in Birmingham and bring new business to the Mailbox Headquarters. Plans include making Birmingham a new front to the BBC for digital innovation, particularly in arts and drama, and skills and talent and development.

The teams who deliver entry level training schemes, talent and skills development, including inductions, will be based in Birmingham.  BBC apprenticeships and traineeships will also be run from Birmingham

The BBC has also agreed in principle with the Arts Council, England that Birmingham will become the new home for The Space, their pioneering digital arts partnership.  Teams from Birmingham will also make contributions to the BBC’s Shakespeare season in 2016.

Neil Rami, chief executive of Marketing Birmingham, said: “Birmingham already has one of the UK’s best performing digital economies with 6,099 tech firms employing 38,300 people and delivering £768 million to the regional economy.

“The city is well placed to grow its digital sector. According to a recent Business Birmingham survey, 70 per cent of London tech firms have struggled to grow in the capital due to soaring costs, a struggle to recruit and a property squeeze. Birmingham’s lower cost base, large talent pool, flexible office space, proximity to London and supportive digital community make it the ideal destination for ambitious digital firms looking to grow.”