The extensions build on the success of the existing line, which carried over 10m passengers last year, and will be funded through private finance initiative credits. It will also allow easier interchange between tram, rail, bus and taxis at the Nottingham station.
The decision will allow Nottingham City Council to start the procurement process. Construction is scheduled to start in 2011 and open in 2014.
The Government has also confirmed the Workplace Parking Levy Order which will enable the City Council to provide its share of the funding for the tram. Due to the current economic climate, the Government has imposed a two year delay for the levy at no cost to the City.
The official press release is available on the DfT's website.
