New ‘Growth Zones’ to generate £1.7bn and 60,000 jobs

The West Midlands has become the first region in the UK to get new ‘Growth Zone’ powers, capable of generating more than £1.7bn for local councils.

Three Growth Zones have been set up with councils able to retain business rates for 25 years and will use the funds to level-up and grow the area, whilst tackling issues causing deprivation, fuel poverty, jobs, skills and health.

Zones have been earmarked for:

• Dudley and Sandwell
• Walsall
• Parts of East Birmingham and North Solihull

The three zones have the potential to generate £1.7bn for regeneration investment, create 60,000 jobs and deliver 4,500 new homes.

The Growth Zone proposals were secured by the West Midlands Combined Authority (WMCA) earlier this year as part of the region’s Deeper Devolution Deal with Government.

Andy Street, Mayor of the West Midlands and WMCA Chair, said: “The Deeper Devolution Deal agreed with Government back in March was a real vote of confidence in our region – placing trust in local leaders to deliver for local people.

“We’re now starting to see the promised new powers and funding flow. Alongside the recent announcement of Investment Zone status for the West Midlands – helping us to draw in money to support major schemes across Coventry, Birmingham and Wolverhampton – today’s unveiling of Growth Zones will supercharge our ability to drive forward regeneration right across our region in the places that need it most.

“By securing this new approach – where local authorities will be provided with greater financial certainty and control thanks to long term business rates retention – we can work together to revitalise local neighbourhoods and improve the lives of residents in the months and years ahead.”

This is the first time that Government has deployed ‘Growth Zones’ – enabling local councils in a region to retain 100% of their business rates for 25 years to support comprehensive regeneration that could include new development, job opportunities, community facilities and housing.

Cllr Patrick Harley, leader of Dudley Council, said: “The introduction of Growth Zones is an important part of a wider devolution deal which I hugely welcome. I have always been clear in my opinion that local decisions should be taken by local people.

“The Growth Zones will allow us to retain 100 per cent of business rates over a 25-year period, bringing in potentially millions of extra pounds.

“On top of that, thanks to the devolution deal, as civic leaders we will have a greater say on where that crucial extra income should be spent locally.

“We want to create new jobs and new homes, and drive investment in areas of the borough that need it.”

The Growth Zones are now in the process of going through the legal procedures within Government prior to formal sign-off.