A massive home-building programme in the south Midlands area is to go ahead despite the concerns of West Midland business leaders.

John Prescott, the Deputy Prime Minister, gave the green light to plans for more than 211,000 new homes, accompanied by extra spending on transport, health and education.

The Government said development in the south Midlands, between Birmingham and London, would benefit the West Midland economy. But there are concerns the expansion has been designed to meet demand for housing in the south - and the Government has failed to consider the effect it will have on the neighbouring regions.

The West Midlands Business Council, which represents business leaders, has organised a series of meetings with Government and local authority officials to hammer out ways of ensuring the West Midlands doesn't find itself starved of investment.

Mr Prescott published the final draft of his strategy yesterday, following a two-month consultation.

It covers the area of Milton Keynes, Northamptonshire, and parts of Bedfordshire and Buckinghamshire.

The strategy highlights the need to create "adequate infrastructure" for new residents, by funding improvements in transportation, health and education services.

The Government is giving £1.3 billion to the south Midland area for transport improvements.

This will pay for improvements to the M1, key East-West roads, and West Coast Main Line.

Lord Rooker, the Minister for Regeneration and Regional Development, said: " Increasing the supply of homes in the Milton Keynes South Midlands area is essential to promote sustainable communities and sustainable growth.

"Along with the three further growth areas in Southeast England this will meet the demand for more houses and ensure the continued economic success of the South-east."

Independent inspectors found there was no inherent conflict between the proposals for the south Midlands and planning guidelines for the West Midlands.