The leader of Birmingham City Council has welcomed plans by the Government to back a project to revamp the city's New Street station.

Councillor Mike Whitby, the leader of the council, and chair of the New Street Gateway Funders' Board, has welcomed Chancellor George Osborne's backing for the New Street Gateway project during his emergency Budget speech on Tuesday.

Cllr Whitby said: "I am delighted that George Osborne has recognised the strategic importance of the Gateway scheme and reiterated the Government's support for a project that is not only significant regionally and nationally, but is also a statement about how Britain values good public transport infrastructure.

"This of course comes at a time when we are starting to see real progress on Phase 1 of the Gateway development, working towards a completion date of 2012 and final completion in 2015.

"As far as major capital projects go, this is hugely important because it will double passenger capacity and transform the station into a modern 21st century landmark that underlines Birmingham's strong reputation as a place to visit and do business."