New powers and £1.5bn investment from Deeper Devolution Deal
The West Midlands Combined Authority (WMCA) has negotiated a new Deeper Devolution Deal securing wide ranging powers and a budget windfall in excess of £1.5bn to level up the region.
Under the Deeper Devolution Deal – announced in today’s Budget – the WMCA has secured new and significant longer-term funding agreements including 100% business rates retention for 10 years, worth £450m.
It has also been confirmed the West Midlands will, from the next spending review, have a departmental-style arrangement with a single pot of funding negotiated with Government. This will give local leaders control over spending on devolved areas, marking what it called a “seismic shift” in power and influence from Whitehall to the West Midlands.
On transport infrastructure, there is a welcome future funding commitment for round 2 of the City Region Sustainable Transport Settlements, which will come online in 2027 and support major projects such as an expansion of the Metro network, new railway stations, and more dedicated bus and cycle lanes.
There is good news in the immediate term as well, with an additional £60m which is expected to act as a springboard for delivery of the Metro extension between Dudley town centre and Brierley Hill, subject to approval of further funding by the WMCA Board.
After the announcement that the West Midlands will be home to one of the 12 Investment Zones, the WMCA has also been able to negotiate new, locally designed Levelling Up Zones with 25-year business rates retention to drive further investment, innovation and economic growth in targeted areas.
As well as new funding, the deal offers the West Midlands further influence over key policy areas such as skills, careers, employment support and digital inclusion.
The WMCA has also secured greater influence over business and innovation policy. This includes areas such as inward investment and international trade, the next round of British Business Bank UK investment funds and the formation of a unique Strategic Productivity Partnership with Government.
There is good news on efforts to enhance the natural environment, as the Deeper Devolution Deal includes unique new measures to tackle climate change in critical areas such as the retrofit of older properties, cleaner and cheaper production methods, and smarter energy systems.
Andy Street, Mayor of the West Midlands and WMCA chair, said: “This announcement is a major step forward for the West Midlands with significant new powers and funding secured.
“We’re deepening devolution by building on previous deals and further empowering local leadership with the financial autonomy and decision making authority that they are best placed to deploy. No one in Whitehall can understand the West Midlands better than local leaders, and so there is no doubt in my mind that we should be empowered to shape our future – which is exactly what this new deal will allow us to do.
“I recently called for an end to the ‘begging bowl culture’ which confined us to regularly submitting bids for various pots of money in competition with other regions. I’m pleased to see that this new devolution deal goes some way to addressing that – giving us guaranteed devolved funding to spend how we choose, akin to what Government departments have currently, and doing away with Whitehall micromanagement.
“Since 2017, we’ve demonstrated a solid track record in building more homes whilst protecting the green belt, improving peoples’ skills to help them find quality work, increasing transport investment sevenfold and tackling the climate emergency. This is why the Government is trusting us and granting us greater responsibility – and accountability – to deliver even more.
“Today is a milestone day for the West Midlands, and I am delighted we have been able to work together as a team to get this Deeper Devolution Deal over the line.”
