Two years after Transport Secretary Alistair Darling promised an extra #1 billion to improve transport in the West Midlands, the region is to ask the Government: where's the money?

It should have gone towards boosting a decaying infrastructure and given impetus to projects like the redevelopment of New Street Station.

Mr Darling's 2003 pledge was seen as a disappointment at the time because the West Midlands Multi Modal Study, which examined transport issues along the M6 corridor between the Midlands and Manchester, warned #7.5 billion would be needed to unclog the region's roads over the next three decades.

But councils across the West Midlands claim that even the promised #1 billion has not emerged and warned that schemes, such as extending the metro or rebuilding New Street station, are in jeopardy.

They have warned they may be forced to divert money from housing or regeneration schemes on the basis that better transport links can improve the local economy, the paper warns.

Transport and civic leaders from the seven metropolitan councils tomorrow will be told by officers: "We need to address the issue of what has happened to our #1 billion."

The warning is in a paper to the West Midlands Planning and Transportation Sub Committee. The body is responsible for presenting transport concerns to the Government and includes councillors from Birmingham, Wolverhampton, Coventry, Solihull, Dudley, Walsall and Sandwell, as well as Centro and the passenger transport authority.

A spokeswoman for the Department for Transport said: "In the past five years we have invested #365 million in transport for the West Midlands, as well as support for specific schemes such as the Coventry bus network.

"This is on top of support for improvements to road and rail which benefits the West Midlands, such as upgrading the West Coast Main Line and the M6 Toll road.

"The #1 billion announced by Alistair Darling was to implement the recommendations of the West Midlands Multi Modal Study, and it was always made clear that it remains conditional on the West Midlands drawing up realistic proposals in the local transport plan which can be implemented.