Give the Midlands Engine time to warm up
By Chris Gibbons, technical partner at Tuffin Ferraby Taylor, Birmingham
AFTER so much talk of the “devolution revolution”, the launch of the Midlands Engine for Growth in December was a significant move. The initiative, which aims to create 300,000 extra jobs and add £34bn to the UK economy by 2030, has been championed by Business Secretary and local MP Sajid Javid.
But what does it really mean for businesses in the Midlands and the communities they support?
Having recently returned to the region after 11 years in London, I have been following the initiative with great interest. It’s early days, but there has been some progress in recent weeks that suggests the engine is rumbling into life.
Mr Javid recently announced a Midlands Engine Investment fund of more than £250m to provide financial assistance to the region’s SMEs, and the British Business Bank has stated first investments will be made before the end of 2016.
There are other signs regeneration is afoot.
For anyone in property, the new enterprise zones in Leicester and Dudley should offer great promise. After all, recent history has shown that developers are often so confident they’ll be able to let new buildings and facilities in these areas that most are prepared to build speculatively. As a firm that has its central office in the heart of the region, we are of course following developments with the Midlands Engine closely and are well placed to advise anyone seeking to invest in property and construction.
TFT is currently working with several international companies keen to increase their presence in the region. Indeed, inward investment has been steadily growing in the Midlands since 2011, and in Birmingham the signs are plain to see.
A number of global companies are relocating here from London – HSBC recently moved its retail and business lending operation to the city, along with 1,000 of its staff, while Deutsche Bank has increased its Midlands workforce to around 1,500 people. With PwC recently ranking Birmingham as the sixth-best city in Europe for investment (London didn’t even make the top 10) more are likely to follow.
For the 11 million people who live in the Midlands, it’s employment where the greatest gains are likely to be seen.
In the last five years, the Midlands has attracted 880 Foreign Direct Investment projects, according to a Government report, creating over 48,000 new jobs and safeguarding a further 23,000. With 40% of the regional population aged below 25, the Midlands offers a diverse and talented workforce, and at TFT we’re already partnering with local universities to help train and employ a new generation of skilled labour. This has in turn enriched our own staff, and is something we hope to build on as our business expands with the local economy.
In the four months that have passed since the Midlands Engine was launched, the initiative seems to have attracted more criticism than inward investment. Yes, it’s still very much in the planning and implementation stage, but regenerating the heart of England can only ever be a good thing. Let’s give the Engine a chance.
