The group organising the Midlands’ regional transport strategy, Midlands Connect, has received £12 million from the Department for Transport.

Sir John Peace, chairman of Midlands Connect and Midlands Engine, said: “This is a huge vote of confidence. The funds will be used for the critical work of developing transport links that will drive growth — not just here in the Midlands but also across the UK.

“Better transport connections will unleash our huge economic potential, which will help to keep the UK economy strong while we adapt to life outside the EU.”

The three-year funding deal was announced by Transport Secretary Chris Grayling in a speech at the Conservative Party Conference in Birmingham.

Andrew Cleaves, chair of the Midlands Connect Steering Group, said: “Congestion remains a real challenge for the Midlands, and that impacts on the wider UK economy. To overcome that challenge and seize on opportunities like HS2, we must develop the transport links needed to quickly connect people with places and manufacturers with markets.

“Now is therefore the right time to invest heavily in critical infrastructure that will drive economic growth for generations to come.”

The Midlands Connect partnership involves 10 Local Enterprise Partnerships, Network Rail, Highways England, HS2 Ltd, 28 local authorities and the business community; the Department for Transport is an associate member.

In March, the Government made a commitment to put Midlands Connect on a statutory footing by 2018, establishing it as “a Sub National Transport Body overseeing pan-Midlands transport policy and strategy”.