Chancellor commits £392m to Midlands LEPs
CHANCELLOR Philip Hammond said he is committed to closing the gap between London and rest of the country in his Autumn Statement today.
The Government is to invest £5m in development funding for the Midlands Rail Hub and a programme of rail upgrades in and around central Birmingham that could provide up to 10 additional trains per hour.
The Chancellor also said there will be £392m to LEPs in the Midlands, and that the government will continue to work towards a second devolution deal with the West Midlands Combined Authority.
The Government said it will publish a Midlands Engine strategy shortly, and that and the British Business Bank will make its first investments in the Midlands Engine Investment Fund next year.
Steve Hollis, chair of Greater Birmingham Solihull LEP, said: “It’s hugely positive to hear that the Government is committed to agreeing a further devolution deal with the West Midlands and that there will be increased borrowing powers for combined authorities led by regional Mayors – this is critically important to deliver the investments required.
“We are also pleased to hear that there will be investment into the Midlands Rail Hub and that the Midlands Engine Investment Fund will be supporting businesses from the new year.
“We look forward to further clarification on the allocation of the £392 million for the LEPs within the Midlands from the Local Growth Fund so that we can start to prioritise its spend locally to affect real change.”
Ian Cornock, lead director for JLL Midlands, said: “We’re pleased to see the Chancellor’s continued commitment to devolution and all local LEPs to help drive up productivity in the regions.
“We know infrastructure is one of the biggest single influencers for investors who look at the connectivity of the region. Investing in rail services into Birmingham is a tangible change the city can focus on and will also help with the connectivity of HS2.”
TheBusinessDesk.com and EY have produced a Midlands Engine report, assessing the challenges and opportunities facing the region as it looks to maximise the positive impact of devolution.
