The Government is investing almost £400m to transform Birmingham New Street station and make journeys easier for millions of passengers, the Transport Secretary, Ruth Kelly, announced today.

The Government has provided all the funding grants sought by Birmingham City Council, Advantage West Midlands and Network Rail. It is now for these parties to work together to deliver the promised transformation of New Street for its users and the city on time and on budget.

The station redevelopment focuses on relieving the congested conditions, making it easier for the 17 million passengers who use the station each year to reach platform level. This investment will also help accommodate the increase in passenger levels, forecast to increase by around 30% in the next 10 years.

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The scheme will double the size of the station concourse and all platforms will be served by escalators, which increase from five to 31, making it more accessible for disabled people, passengers with heavy luggage and parents. There will also three new entrances to the station from the city centre and new public square.

Speaking at Birmingham New Street today, Ruth Kelly said: "This scheme has been in development for some time and has improved immeasurably so that it can now meet the needs of passengers and deliver a much needed boost to capacity. The Government is making a major investment in Birmingham New Street and it is now up to Birmingham City Council and its partners to transform this station into one of the best in our country."

John Hutton Secretary of State for Business, Enterprise & Regulatory Reform said: "This development will both improve facilities for businesses in New Street and create an extra 5000 jobs in the area."

Network Rail and Birmingham City Council plan to start work in 2009. The project is expected to be complete by 2013/14.

(GK/JM)