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Recharge the West Midlands

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Recharge the West Midlands Recharge the West Midlands Kickstarting the West Midlands Economy: Our investment case to government June 2020 2 Introduction We need the Government’s financial backing to that the West Midlands will be disproportionately deliver a rapid economic recovery. This document impacted by the current crisis. But these factors, plus sets out the key immediate asks of the Government the promise of HS2, Coventry City of Culture in 2021 from the West Midlands, which total £3.2bn of and the Commonwealth Games in 2022, as well as our investment over the next three years. The region leadership in the growth sectors of the future are also generates £105bn of GVA and 5.5% of the UK’s our greatest strengths in recharging our economy. economic output. Our region can, and should therefore Our clear and credible recovery plan delivers for be a substantial part of the Government’s plans for businesses, the economy, the environment and the national economic recovery. people who live here. Our plan drives benefits across We are ready to deliver projects within this fiscal the ‘three LEP area’ of the Black Country, Coventry and year (6-9 months) that will deliver immediate Warwickshire and Greater Birmingham and Solihull. It impact in the real economy. This plan will not only includes clear actions and investments in all three cities address the short-term risks of COVID-19 by creating of the West Midlands - Birmingham, Coventry and and safeguarding jobs, but also takes into account the Wolverhampton - and the four boroughs - Dudley, longer term improvements in regional innovation, Sandwell, Solihull and Walsall. We are focused on competitiveness and resilience. We have already supporting the people who will be particularly badly leveraged substantial investments for our proposals affected by the economic effects of COVID-19, helping from both private and public sector partners. This isn’t a them to retrain and find jobs. plan just for now, or even the next five years, but will We need your support, so that we as regional recharge our economy for long term growth. leaders, can deliver for all the people that we Investing in the West Midlands will help deliver the represent. We look forward to working with you to government’s priority of levelling-up. Our region recharge the West Midlands. punches above our weight on private sector-led innovation. We attract over £400/head of private sector R&D investment, higher than most other UK regions, This plan is signed by the following: but receive less than £100/head of public sector investment, one of the lowest of any region. Investing in Andy Street – Mayor of the West Midlands the West Midlands will help create or safeguard 135,800 jobs, support 154,400 young people and Cllr Ian Brookfield – Leader of City of Wolverhampton workers, build 35,000 new homes, and support a rapid Council and WMCA portfolio holder for economy and economic recovery for the region and the UK. innovation Cllr Ian Ward – Leader of Birmingham City Council Trust in us to deliver the recovery. We already have the right partnerships and networks across the region, Cllr George Duggins – Leader of Coventry City delivery infrastructure and links to key businesses to Council quickly deliver our plan. Before the current crisis, we Cllr Patrick Harley – Leader of Dudley Metropolitan were the fastest-growing region outside London. Our Borough Council economic output has increased by 25% over the past Cllr Yvonne Davies – Leader of Sandwell Metropolitan five years. We have more than doubled the number of Borough Council homes built annually since 2010, and increased the Cllr Ian Courts – Leader of Solihull Metropolitan number of people in work by nearly 20% before the Borough Council pandemic. Our distinctive strengths, from world-leading automotive innovation, green technology to health and Cllr Mike Bird – Leader of Walsall Council life sciences, are globally competitive and set us apart Cllr Matthew Dormer – Leader of Redditch Borough from other regions. It is critical that we quickly regain Council – on behalf of the non-constituent authorities this growth momentum, to avoid a steep rise in Lee Barron - Regional secretary of TUC Midlands unemployment and long-term economic scarring. Tom Westley - Chair of the Black Country Local We are facing one of our greatest challenges with Enterprise Partnership COVID-19. We are home to one of the youngest and Nick Abell – Chair of the Coventry and Warwickshire most diverse communities in the country, who now face Local Enterprise Partnership the daunting prospects of unemployment, with the Tim Pile – Chair of the Greater Birmingham and share of youth claimants doubling in May compared to Solihull Local Enterprise Partnership the start of the year. Our exposure to sectors such as automotive, manufacturing, leisure and hospitality mean Matthew Hammond - Chair of the West Midlands Growth Company 1 The Deal - Together in partnership with central government, we will reset, rebuild and recharge the West Midlands economy This investment will help create or safeguard 135,800 jobs for our residents, support 154,400 young people and workers, build 35,000 new homes, and support a rapid economic recovery for the region and the UK. Our areas of industry support have been adapted from the Local Industrial Strategy to take account of the impacts of Covid-19 Create green Maximise job creation for Invest in healthcare manufacturing jobs local people from HS2 and innovation other unique West Midlands opportunities Harness the potential of green Accelerate and maximise the Leverage the West Midlands’ technology and electrification to benefits of HS2, strengths as a centre for deliver green growth, improve Commonwealth Games and proving health innovation, build the wellbeing for our City of Culture, and a more resilient medtech supply communities and unlock 51,700 reinvigorating the cultural chain and improve health green jobs with investment of sector. Doubling down on these outcomes to create a healthier £614m investments will unlock 33,000 population, creating or jobs and growth across the safeguarding 3,200 jobs, with region with investment of an investment of £137m £306m Highlights Highlights Highlights • Gigafactory — A £250m • Benefits of HS2 — £95m to • Health innovation — £60m battery ‘Gigafactory’ and £35m accelerate the development of investment in the Birmingham investment in the electric the first HS2 interchange north Life Sciences Park to catalyse charging network to develop the of London at UK Central, £70m future private investment of battery and charging technology to regenerate the wider Curzon £200m, creating more than needed to adapt to electric Street and Digbeth area, 700,000 sq ft of space for vehicles across the UK, creating through the Martineau Galleries healthtechs and £54m 10,100 high-value jobs and development and £61m to investment to rapidly scale new 29,700 job years in construction. develop the creative and cultural health technologies and hub. These would bring forward improve supply chain • Fuel poverty retrofit — £100m the creation of 30,000 jobs and resilience. Together, these of funding to eliminate fuel 4,300 new homes. would create over 3,000 jobs poverty for 50,000 homes and increase GVA by £480m. across the West Midlands by the • Reinvigorating the cultural end of 2022, including in the sector — A critical opportunity • Better health outcomes most deprived areas of the UK. to help the cultural sector adapt — £23m in the Radical Health This is estimated to create to COVID-19 and reinvigorate Prevention Fund to target key 26,000 jobs and safeguard the sector across the region drivers of health inequality and 5,240 jobs. through an £80m investment, to launch local screening and creating and safeguarding up to diagnostics hubs across the 3,000 jobs. region to accelerate screening and improve local health outcomes. 2 Our recovery will be enabled by investment in our infrastructure, people and communities, underpinned by a business support programme for our high-potential businesses Build better digital and Regenerate and build Get people back into work transport links brownfield land and building 35,000 new homes Enhance our digital Landmark investment of over Support thousands of young infrastructure and develop the £650m to bring forward at least people and workers by most integrated multimodal 35,000 additional new homes equipping them with the skills public transport system, – of which over 15,000 will be needed for the future through through an ambitious affordable – building on the apprenticeships, training, investment of £376m to drive West Midlands’ nationally upskilling and employability productivity and create 4,200 leading delivery of brownfield schemes, through an job years in construction. remediation, regeneration, investment of £550m Investing in sustainable, green housing supply and design transport projects will ensure innovation HS2 is integrated into our transport network, and support Highlights Highlights economic and housing growth Brownfield regeneration and Supporting young people — Help housing — £200m to power 38,400 young people obtain Highlights ahead in unlocking and apprenticeships and work-related accelerating our regional pipeline of experience, 27,000 to complete 5G and fibre — £28m to develop brownfield sites, alongside their qualifications and receive accelerator hubs that will enhance additional new funding for a training, and track and engage digital connectivity and boost National Brownfield Institute. 45,000 in the labour market. regional
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