Businesses bouyant as West Midlands devolution deal is signed and sealed

CHANCELLOR George Osborne signed off the West Midlands’ £1.1bn devolution deal at the Institute for Advanced Manufacturing and Engineering (AME) in Coventry yesterday.

He met with members of the West Midlands Combined Authority (WMCA) Shadow Board and put pen to paper on a deal which will see the region’s local authorities – along with a metro-mayor to be elected in 2017 – overseeing spending linked to economic growth in areas such as infrastructure and development, transport and skills.

The Government has also backed key projects for the region including funding the Curzon Street Enterprise Zone extension and funding the Metro extension to Eastside and Brierley Hill, subject to a business case.

And there are strong rumours in Coventry that the city could receive as much as £150m towards regeneration projects including the large-scale Friargate scheme near the city’s railway station.

Osborne said: “We want to make the Midlands Britain’s engine for growth and this deal will give the region the powerful levers it needs to make that happen.

“We have worked with local council leaders across the party divide, and today we are announcing a collaborative way of working that would not have been countenanced in this region even just a few years ago.”

Business secretary and Bromsgrove MP Sajid Javid said: “The Midlands is already an engine for growth in the UK but we know there’s so much more potential across the region.

“We want to help businesses and support by adding as much as £34bn to the Midlands economy by 2030 and creating 300,000 extra jobs. This devolution deal is the fuel that will keep this engine running at full speed.”

Cllr Bob Sleigh, chair of the Shadow Board of the West Midlands Combined Authority said:  “This is an historic moment for the West Midlands. We have moved incredibly quickly to create the partnership between the seven metropolitan councils and our three LEPs and we are delighted the Government has recognised this and has rewarded our ambition with the biggest investment package in the country.”

The WMCA will receive £36.5m a year funding allocation over 30 years, to be invested to drive growth.

The West Midlands business community has been quick to respond positively to the devolution deal.

Richard Halstead, Midlands and East region director at EEF, said: “This is a positive step towards boosting growth and productivity and a great opportunity to build on the work of local enterprise partnerships.
 
“Today’s announcement however is just the start – greater efforts must be made to improve relationships between business and local authorities, including embedding the business voice in decisions that will be taken at the local level in the future.”

Ian Cornock, lead director at property consultancy JLL in the region, said: “The devolution deal is the news we have all been waiting for and will undoutedly further fuel the interest investors are seeing in Greater Birmingham.

“We know from experience investors see no boundaries. Whether a scheme is in the Black Country or the city centre, to them it is Birmingham. Our ability to deliver joined up thinking on transport and infrastructure is one of biggest key indicators of investment potential and the news that an additional £97m will be made available for a further extension of the Midland Metro tramline, is very welcome.”

Matt Hammond, regional chairman at accountancy firm PwC in the Midlands, said: “This is great news for the region. The proposed agreement will mean that decisions can be made by the West Midlands Combined Authority on the investment priorities and service interventions that will deliver growth, improve skills and raise productivity levels in the region.

“These are the real issues that will make a real difference.”

Sara Fowler, senior partner at fellow accountancy firm EY in the Midlands, said: “It’s good news that the West Midlands is now in the devolution mix having secured the first agreement of its kind outside of the north, and which has the potential to extend new powers to informed, local decision makers and support economic rebalancing.”

Mike Steventon, Midlands regional chair at fellow big four accountants KPMG, said: “Today’s devolution deal will undoubtedly be seen in years to come as a landmark moment in the economic growth of our region.

“By giving the West Midlands Combined Authority the power and funding to act on our infrastructure, our jobs, our public services and our homes, we will see those who understand the needs of our region given the responsibility to drive it forward.

“A great deal of kudos must go to the regional councils and LEPs for their persistence and determination to make this deal happen.”

Pauline Biddle, practice senior partner for accountancy and advisory firm Deloitte in the Midlands, said: “We are hugely supportive of the rebalancing of power outside of London and the South East, and are delighted that all of the determination and perseverance of those behind the scenes has finally born fruit.

“We have certainly witnessed first-hand the ‘engine for growth’ that the Chancellor referenced in his speech, and arguably it has been roaring for some time now. What this deal gives us though is an even stronger platform – with decisions made locally – from which the wider region can continue to flourish, not just in the UK or Europe but on a truly global stage.”
 
Chris Rawstron, partner and head of business legal services at Irwin Mitchell in Birmingham, said: “This devolution deal is welcome and I’m confident that it will make a difference.

“It shouldn’t however be viewed as the only answer to bridging the gap between London and the rest of the UK and although our YouGov research found that 48% of business leaders in the West Midlands thought greater devolution of powers would boost economic growth, a greater proportion thought that a substantial increase in infrastructure would be more effective.

And Carl Perrin, director at AME, where the deal was signed, said: “We have some major regional strengths to build on and exploit and we look forward to playing our role in accelerating our advanced manufacturing capabilities and ensuring young people have the chance to learn in a world class environment that is getting them ready for industry life.”

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