Public transport body Centro has vowed to continue to fight for a major extension of the Midland Metro line in Birmingham.
Transport Secretary Philip Hammond announced earlier this month that he was suspending proposals to build a new section of the tram route from Snow Hill to New Street station.
The project, which would create 1,300 new jobs and boost the region’s economy by £50 million a year, had been approved by the previous Labour government two months before the General Election.
Geoff Inskip, Centro chief executive, said it was working to ensure the scheme met the government’s criteria for funding.
He said: “All major schemes are on hold until the (Government’s) Comprehensive Spending Review in the autumn.
“The schemes we have in the region are all about regeneration and sustainability and we strongly believe they should meet the Government’s criteria.
“We have made the case repeatedly that we believe the Midland Metro business case continues to meet those criteria.”
Members at Centro’s AGM expressed concern that two other Metro schemes, in Newcastle and Manchester, were also being placed on the back burner.
The decision was made as the Department for Transport looks to cut its financial support to local authorities for major transport schemes by £1.66billion.
Centro said schemes which have been contractually approved will definitely go ahead.
These include advance works to the Midland Metro and options for the acquisition of new trams, Smartcards, Wolverhampton Interchange and New Street station.