Growth in the West Midlands: What's the plan?

The new Mayor of the West Midlands, Labour’s Richard Parker, has set out his priorities for the region. The progress he makes towards them will be keenly watched not only by those living in the region but also those seeking to invest in key sectors and locations.

The opportunities for the West Midlands are substantial with HS2 coming, a thriving university sector, favourable demographics and growing confidence.

Perhaps not surprisingly given his close political allyship with the Chancellor of The Exchequer, Parker’s policy agenda closely mirrors that of the new Labour Government. His four themes of jobs for everyone, homes for everyone, growth for everyone and journeys for everyone will provide a platform to support the Government’s agenda.

These themes will also resonate in an area of the country that continues to struggle with high unemployment, poor quality housing and creaking public transport infrastructure.

In large parts of the region buses remain the main form of public transport usage and therefore a change of emphasis away from rail is likely to be well received, even if his ambitious plans to bring back local control over bus services remains a long-term project.

On housing few could argue with his ambition to deliver “social and affordable homes and vibrant communities so that everyone will have a place to call home”, however thereality of the housing challenge in the Midlands means substantial progress will be difficult without large scale Government support and a willing private sector. With revisions to the standard methodology for calculating housing need [KW1]?expected to result in a 28% increase in the number of new homes delivered across the West Midlands compared to the current method, the Mayor’s housing ambitions will need to go beyond a narrow focus on just social and affordable housing.

Mayor Parker has also placed innovation and creativity at the heart of his plans for growth. Again, he will need greater powers and a Government willing to invest and support the private sector if he is to see success. It has often been the case that the debate around how to drive economic growth has focussed on the manufacturing industry, but the service sector is also critical in developing the regional economy. He will need to ensure that Birmingham’s thriving financial, legal, consultancy and conferencing sectors continue to grow if he is to shift the dial on the low productivity that has hampered the region’s prosperity.?

Like the Government, the new Mayor faces a huge challenge if he is to make his aspirations reality for the 3 million people living in the West Midlands. The positive news for the development sector is that he and the Government have a consistent approach, and this degree of political coherence bodes well for the coming years.? The challenge for the Mayor is to ensure that the West Midlands can make a compelling case for both public and private investment in the region above other areas of the country. Part of that argument will be demonstrating that he can leverage private sector investment to meet the objectives he shares with Government.

The other, and perhaps biggest, challenge he will face will be ensuring that the seven councils that make up the combined authority can work effectively with him and together for the collective good of the region.

The West Midlands is set to be a key test bed for the new Government’s devolution and growth agendas, as driven by a new statutory Local Growth Plan. ?The West Midlands Combined Authority, led by Mayor Richard Parker, will be of increasing importance over coming years.

If you want to understand more about the implications for your business, then feel free to contact our Midlands experts via here.

Written by,

Tristan Chatfield | Associate Director