£389m settlement deal boosts regional control over investment

The West Midlands Combined Authority (WMCA) has secured £389m as part of its devolution deal with the government.

The single payment will give Richard Parker, Mayor of the West Midlands and local leaders, greater control, choice and power to focus money on regional priorities such as economic growth, jobs, housing and better transport.

It replaces the previous system of bidding for multiple grants from different government departments, helping to end Westminster-centric decision-making, and bringing independence and power to the regions.

Alongside the region’s existing £211m transport funding, the settlement will amount to £600m and run from April to March 2026.

As part of this ongoing devolution of powers and funding to the West Midlands, the WMCA expects future settlements to span multiple years.

The Integrated Settlement means the West Midlands has become the first of only two English regions that will get a single pot of money this year. The other will be Greater Manchester with more regions to follow from 2026.

The Mayor said: “This settlement shows the Government’s strong confidence and commitment in transferring more powers and responsibilities from Whitehall to the West Midlands.

“That means every penny can be targeted where it will have the biggest impact, on the things that matter most to people like jobs, affordable housing and better transport – all key priorities for me.

“This initial pot of money is just the start of a succession of multi-year settlements for the region. In return I will use that money to make bold, long-term decisions that create real opportunities for local people, making sure no community is left behind.”