Funding confirmed for ‘once in a generation’ development vehicle

Plans to establish an East Midlands Development Corporation that would bring forward a “once-in-a-generation” opportunity to transform the region’s economy have moved a step closer – after the government signed off a £2 million fund to start to establish the body.

The funding was announced by the Chancellor Philip Hammond at last year’s Conservative Party Conference and since then, a consortium of East Midlands civic and business leaders have come together to agree an action plan for the Development Corporation.

Its focus will be on maximising and accelerating development opportunities and strategic transport connectivity across the East Midlands, and particularly around the HS2 station at Toton, East Midlands Airport, SEGRO Logistics Park, Chetwynd Barracks and Ratcliffe-on-Soar power station, which is due to be decommissioned by 2025.

The Development Corporation says it will aim to encourage and bring forward the creation of tens of thousands of new jobs and thousands of new homes on these sites in the coming decades.

An interim oversight board met earlier this week – chaired by Midlands Engine chairman Sir John Peace – to update officials on next steps, including the confirmation that £2m to start to establish a body to deliver development opportunities has been signed off by the Ministry of Housing, Communities and Local Government, and will be released by the end of March.

Communities Secretary Rt Hon James Brokenshire MP, who is also the Government’s Midlands Engine Ministerial Champion, informed Sir John Peace of the decision last week.

The project will now be promoted to investors next week at MIPIM in Cannes, which TheBusinessDesk.com is attending, as part of an £11bn portfolio of Midlands projects.

The first meeting of the interim oversight board included representatives from Midlands Engine, Midlands Connect, D2N2 LEP, East Midlands Chamber, East Midlands Airport, city, county and borough councils from across the region, HS2 Ltd, Highways England and universities.

The meeting outlined what comes next for the Development Corporation, including three significant commissions in the coming months:

· Businesses, research institutions and regional stakeholders will be brought together to refine the investment proposition and development plans;

· A detailed assessment of the economic value of bringing the development sites together will be made, including how the Development Corporation can accelerate the creation of new jobs, increased productivity and housing in the region;

· A route map for the incorporation of the body will be outlined to understand its scope, powers and responsibilities, including learning from successful development corporations from around the world.

Sir John Peace said: “This corporation presents the East Midlands with a unique opportunity to drive economic growth and prosperity, capitalise on HS2 investment at Toton and wider infrastructure plans for our region, benefiting cities, towns and our rural areas.

“Together we can make the East Midlands the place to live, learn and do business in. We are a region of 4.7 million people, a significant economic area with a world class reputation for advanced manufacturing and life sciences, yet productivity and earnings are below the UK average.

“By capitalising on development opportunities focused around improved infrastructure, we have real potential to address barriers to productivity and turn it in to economic growth. To achieve that, this Development Corporation must embrace the support of the private and public sectors to give world class corporations the confidence to invest in our region.”

Maria Machancoses, director of Midlands Connect, said: “The vision for this Development Corporation has to be supported with strategic transport connections, particularly by linking the HS2 East Midlands Hub at Toton quickly and efficiently with Leicester, Nottingham, Derby and East Midlands Airport. Midlands Connect is working with East Midlands Councils to develop these transformational plans.

“I have no doubt that the ambitious vision this corporation has now set out will reinvigorate the case for HS2 in the East Midlands as a catalyst for unparalleled growth. It is now up to all of us to remain united in our desire to use this opportunity to see the East Midlands reach its full potential.”