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Recharge the West

Kickstarting the 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, 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 , Coventry and year (6-9 months) that will deliver immediate and Greater and . 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 - and the four - , longer term improvements in regional innovation, , Solihull and . 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 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 – 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 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 . Our 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 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 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 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 productivity, and £16m to £400m investment in affordable Retraining programmes — accelerate the delivery of fibre housing for the region to tackle Retrain 20,000 workers for in- connectivity in deprived areas, with acute housing affordability, demand sectors such as health and 350,000 more homes and including a bold, new “Homes for social care, logistics, and business businesses benefitting from full Covid Heroes” key worker services and upskill 24,000 for jobs fibre and 5G coverage. programme. for the future. Transport — Shovel-ready Advanced Manufacturing in transport infrastructure schemes to Construction — £50m enabling improve metro, rail and bus funding to bring forward and services and roads in the region support the delivery of land supply, through an investment of £330m skills, factories and technology that will deliver 3,900 job years in will accelerate the development and construction in the short-term and deployment of the latest advanced longer term benefits two to three building techniques. times their costs, improve access to job opportunities and raise productivity across the region. Highlights Boosting SME productivity and innovation — Our £442m investment through our programmes to help SMEs pivot to growth and ‘Speed to Scale’ programme to redeploy industrial engineering and research talent to Back our region’s businesses develop globally competitive applied technologies will increase SME innovative capacity and productivity, and test and scale new products for high growth sectors, Our business support measures will reinforce creating 37,900 jobs. and amplify proposed investments across the economy, help thousands of businesses adapt to Business adaptation and productivity acceleration the post-COVID environment, pivot to high- — Our £90m grant and voucher scheme will support growth sectors and take to new market 12,700 businesses across the economy adapt to opportunities globally, creating 43,900 jobs COVID-19, boost their productivity and supercharge through £532m investment. export capabilities, creating 6,000 jobs.

3 Create green manufacturing jobs

The West Midlands currently leads on the Industrial Strategy’s Future of Mobility grand challenge building on its existing strengths in automotive innovation (e.g. the UK Battery Industrialisation Centre), and connected supply chains in rail, automotive and aerospace. Cementing this position will attract new investment and create and sustain highly-skilled jobs while boosting the international competitiveness of the region. These productivity benefits are complemented by inclusivity benefits when new technologies are applied to reduce fuel poverty and improve household energy conservation. The current economic crisis arising from Covid-19 is an opportunity to reset our economy in a way that is more equal, inclusive and sustainable. By prioritising green growth, we can address the economic fallout whilst building a more climate resilient economy and achieving our net zero commitments. Our proposals will unlock 51,700 green jobs with investment of £614m. The proposed interventions involve:

Building our battery Accelerating cutting-edge • Benefits: manufacturing capability electric automotive R&D – Safeguarding or creating up through the Gigafactory capability through to 5,500 jobs across the country and R&D capability in • £250m Operation Paperclip the sector through Operation • Summary: A new battery • £85m Paperclip. manufacturing ‘Gigafactory’ in • Summary: A £65m innovative – Increase of up to £1bn in the West Midlands, leveraging programme for automotive and GVA nationwide. private sector investment of aerospace companies to retain – Up to 60 new products, £2bn. The West Midlands’ highly-skilled staff engaging in processes or services customer proximity, existing strategically-important R&D nationwide. expertise and facilities and activities. We will capitalise on speed to deliver positions our ability to mobilise quickly, – Commercial exchange of positions the region well to building on the region’s existing data to accelerate support its cluster of automotive facilities and success of previous development of new mobility companies. programmes such as the PARD products and services. (premium automotive 2003-06). • Benefits: – Support the Government’s We will also establish the £20m response to a range of – Create 10,100 green jobs in UK Mobility Data Institute mobility opportunities and the region. (UKMDI) as an open source, challenges, focusing initially open access research institute – Create 29,300 job years in on the automotive industry. construction in the short- to aggregate and analyse the term. large volume of data being generated by projects, trials and – Secure the UK and our testbeds related to mobility. competitive advantage in high-tech automotive manufacturing, as well as new future mobility products, such as connected and autonomous vehicles and promote clean and carbon- free economic growth. Ready-to-go project 4 Prototyping and testing an Developing electric vehicle Reducing fuel poverty innovative very light rail (EV) charging infrastructure through a regional retrofit transport solution for urban • £35m programme connectivity • Summary: Develop a public • £100m • £114m network of EV charging stations • Summary: Funding for across the West Midlands, • Summary: A project to develop immediate energy efficiency creating the conditions for a novel autonomous, battery measures on 6,000 homes and growth in take-up and powered transport system at the for scaling-up supply chains and manufacture of EVs. The West Dudley VLR National Innovation demand stimulation. The West Midlands is at the of the Centre and then test it in Midlands has the highest fuel UK automotive sector, yet it Coventry. This will build on the poverty gap in the UK due to the ranks eighth out of 12 regions West Midlands existing high average age of housing across the UK in terms of its strengths in automotive stock in the region. It is also supply of publicly accessible technology and manufacturing. well-placed to deliver this charge points for EVs. intervention, given the • Benefits: • Benefits: concentration of energy – Accelerate the development companies and manufacturing – Create 390 job years in of UK capability in very light capabilities available in the construction in the short rail through prototyping and region. term. testing of new solutions • Benefits: (including autonomous pods). – Accelerate the take up of EVs. – Eliminate fuel poverty for – Reduce track construction 50,000 households by the costs by two thirds and end of 2022. enable much wider deployment of urban rail – 1000 jobs created across the UK. immediately and graduate internship programme. – Support the Government’s net-zero agenda by – Scale-up to 20,000 new jobs facilitating modal transfer and retrofit skills programme from cars to public transport. for 10,000 learners. – Increase the pace of carbon reduction from domestic dwellings and support achievement of the net zero objective.

Ready-to-go project 5 Repowering the Black Country • £30m • Summary: Programme to accelerate decarbonisation and clean growth of the Black Country industrial cluster, stimulating private sector investment of at least £400m. The Black Country is one of seven clusters which has been working with the BEIS Industrial Cluster Decarbonisation Programme, and investing now will deliver accelerated impact due to its more flexible SME base and circular economy approach. • Benefits: – Create 2550 and safeguard 2200 jobs – Accelerate reshoring of manufacturing jobs, ensuring £14.8bn in additional GVA over 10 years is clean, net zero growth – Unlock additional private sector funding of £400m – Create the world’s first zero carbon industrial cluster by 2030

6 7 Maximise job creation for local people from HS2 and other unique West Midlands opportunities The West Midlands has some unique opportunities as a result of investment in HS2 and through being host to the Commonwealth Games, the City of Culture in Coventry and other major cultural events. By accelerating major infrastructure investments and by taking steps to support the cultural sector across the West Midlands, our proposals will maximise the value of the West Midlands’ assets and existing investments to unlock inward investment and growth in the wider UK economy, whilst providing the region with the platform to compete globally. This public investment of £306m will create or safeguard 33,000 jobs. The proposed interventions involve:

Accelerating the ambitious Regenerating the Curzon • Benefits: development plans around Street/Digbeth area – Martineau Galleries will the HS2 Interchange station • £131m boost the local economy by £255m, create 8,000 new • £95m • Summary: Regeneration of the jobs and 1,300 new homes. • Summary: Accelerate the wider Curzon Street and – Create 10,800 job years in ambitious development plans Digbeth area, including £70m construction in the short- around the HS2 Interchange for the Martineau Galleries term. station, by releasing land development, which is a core currently planned to be used for gateway development that is – Creative Quarter will enable car parking and by building new part of the HS2 Curzon Street content businesses to pivot infrastructure such as access Masterplan. The proposal also and scale, attracting 10 new routes. This will accelerate the includes a £61m investment into FDI projects per year in development of commercial the Creative Quarter, which will creative industries and development with high-tech accelerate the development of creation of 6,000 jobs. manufacturing and innovation the Creative Content Hub and – Creative Quarter will attract facilities, including a world class Studio UK - anchors to fuel high 50 new businesses to the Health & Innovation Campus, by growth creative industries. The region in the next 3 years to 3-5 years. West Midlands is a creative hub, with Steven Knight’s Mercian meet growing demand • Benefits: Studios soon to launch, and is across the country and upskill 3,000 people in the – Increase Gross Development already a proving ground for Creative Sector in the next 3 Value by £3.2bn. new kinds of digital content with the international games cluster years with a focus on – Increase GVA by £1.4bn. in and the levelling up the workforce. – Bring forward the creation of large-scale WM5G test bed. – Create a world-class at least 16,000 net new jobs innovation hub (StudioUK) to and 3,000 net new homes. enable a digital technology first approach for recovery of – Open up the potential for the UK’s media production early wins from HS2, such as sector. a world class Health & Innovation Campus, – Position the area for the commercial & housing potential development of the opportunities. Birmingham Museum of Science and Industry, which will attract 2 million visitors and bring £30m to the local economy. Ready-to-go project 8 Reinvigorating the cultural sector through the Cultural Catalyst Programme • Benefits: • £80m – Create and safeguard 3,000 • Summary: Provide critical jobs in the creative and support to the cultural sector to cultural sector. adapt business models and – Launch over 200 businesses. accelerate digitisation in response to COVID-19 and – Support the cultural reopen at pace. This includes industries to quickly adapt to £50m for ‘shovel ready’ capital a post COVID-19 projects for arts and cultural environment by improving its venues in the region from long-term financial resilience. Sandwell’s Festival Site & – Help the region to realise the Country Park to Stratford’s £1.3bn economic benefit Swan Theatre. This will arising from the Birmingham reposition the region as a global Commonwealth Games and destination and innovative Coventry City of Culture. leader in cultural offers and creative practice. This will transform the life chances and business potential of our young and diverse population, ensuring that the benefits are felt widely across the region.

9 Invest in healthcare innovation

Developing data-driven health and life sciences are a priority in the West Midlands Local Industrial Strategy. Following the advent of COVID-19 and its impact on the region, this package provides targeted support for high-growth sectors to address the productivity gap, improve health outcomes and reduce regional health inequalities. It also supports the Government’s ambition to increase R&D intensity in areas with high potential for future growth by driving the development of an internationally recognised health technologies cluster which makes the most of the region’s young, diverse population of over 4.2 million and a multi- disciplinary academic and clinical base, supported by major co- investments in infrastructure for health innovation. Our proposals will unlock 3,200 jobs with investment of £137m. The proposed interventions involve:

Developing the Birmingham • Benefits: Life Sciences Park into a – Increase GVA by £400m. substantial cluster of high- – Safeguard or create 1,600 tech healthcare innovation jobs. • £60m – Engage with 500 companies in innovation. • Summary: Initial public investment of £60m to enable a – Raise R&D industry business and incubation hub investment by up to £100m. (the Precision Health – Immediately leverage £45m Technologies Accelerator of private sector capital (PHTA)). This will provide the investment and catalyse critical advanced facilities and future private investment of infrastructure for co-creation, £200m for >700,000 sq ft of incubation and grow-on space space for new healthtech dedicated to health technology businesses over the next 7 businesses. As one of the years. Government’s Life Science Opportunity Zones, the Park will – Provide infrastructure for provide a focal point for a long-term growth and regional health technologies inwards investment to rapidly cluster and immediately develop innovative health leverage significant inward technologies and scale for investment and key regional global markets. strengths in medtech, digital health and clinical trials. This will enable the region to develop new technologies, tackle regional health inequalities, and provide vital infrastructure for sustainable business growth and productivity.

Ready-to-go project 10 Pivoting and scaling new • Benefits: health market entrants with – Increase GVA by £79m over ReSCue (Resilience in 4 years Supply Chains for Med – Create 1,470 jobs (350 direct, 870 indirect, 250 regionally Tech Manufacturing) safeguarded). • £54m – Enable our companies to • Summary: The COVID-19 crisis exploit the opportunities in has highlighted major health afforded by COVID-19 challenges concerning medical and improve supply chain equipment supplies, supply resilience. chain issues and the need for – Respond to new markets, more rapid innovation and regulation, supply chains and regional resilience. Furthermore, procurement. major job losses are predicted in – Adapt through the integration traditional manufacturing of new technologies (e.g. sectors so there is an urgent digital) and innovations from need for sector diversification. outside the sector (e.g. The West Midlands proposes manufacturing, advanced investment to rapidly pivot, materials). create and scale health market entrants through an integrated cluster. This will provide businesses with access to a portfolio of technical assistance, infrastructure and training through tailored packages developed through a network of business support personnel. With the UK’s second largest med tech SME cluster, the West Midlands is ideally placed to respond to challenges in its capability to create basic supplies and novel technologies.

Ready-to-go project

11 Creating Grand Central • Benefits: Reducing health inequality Diagnostics Hub at – Alleviate pressure on the through the Radical Health Birmingham New Street health system by reducing Prevention Fund unnecessary visits to hospital station and remove costs from the • £10m • £13m NHS. • Summary: Recyclable • Summary: The West Midlands – Immediate action to reduce investment to target key drivers proposes to embed diagnostic backlog of screening of health inequality, enabling a and treatment services appointments. healthier workforce and more throughout the community and engaged citizens. Investments – Earlier diagnosis and redefine care pathways to will support cutting edge treatment for cancer improve accessibility of advances in digital and data- screening. screening and reach patients in driven health in the West communities that are harder to – Support a healthy and Midlands and leverage private reach. Our region faces engaged West Midlands investment to accelerate significant health inequalities workforce to control their own innovation to address the wider and there is a need to provide care. determinants of health. quicker access to diagnosis and – Improving the health of the • Benefits: treatment to those with life- workforce and reduced work threatening conditions to ensure – Create 160 jobs. absence. they can remain in employment – Engage with 80 companies in as long as possible. There will – Lower carbon footprint from innovation. be a number of centres across lower unnecessary journeys. the region, starting with Grand – Help 30 innovations move Central Station and the retail from discovery to delivery. complex. This presents a – Narrow the gap in health significant opportunity for the inequality outcomes (e.g. West Midlands, given it has the obesity, diabetes and improve biggest tech sector outside access to service for BAME London employing over 80,000 communities). people across 13,500 tech businesses with a contribution of £5.4bn to the local economy.

Ready-to-go project 12 13 Build better digital and transport links

To support recovery, our package of digital and transport investments is designed to enhance our fibre and 5G infrastructure and accelerate development of the West Midlands public transport system - linked to the locally led HS2 Growth Strategy - Public transport is a vital public service, ensuring the mobility of key workers and providing resilience for our urban areas during this crisis. Our schemes will provide our network with the capacity it needs to support growth and a green recovery. Better connectivity will also improve people’s access to job opportunities and raise productivity across the region. Our proposals will unlock 4,200 jobs years in construction with an investment of £376m. We propose the following investments in digital and transport infrastructure

Providing incentives to Maximising the impact of Improving connectivity extend the fibre network the 5G application across the region by accelerator project with a extending the Metro • £16m digital innovation fund • Summary: Investment to • £101m stimulate private sector • £28m • Summary: Contribution to the investment which accelerates • Summary: To capitalise on the cost of accelerating the East- the delivery of full fibre West Midlands’ position as the West Metro extension from connectivity in less well-off parts UK’s first large-scale, multi-city to and of the West Midlands by utilising 5G test bed by establishing a the Eastside extension linking to anchor tenancy models with digital innovation fund to support East Birmingham to North local authorities. SMEs using the accelerator Solihull from the HS2 station at • Benefits: hubs in Birmingham, Coventry Curzon Street. and Wolverhampton. – 483km of new fibre • Benefits: infrastructure leading to • Benefits: – Support regeneration in around 350,000 more homes – Support digital companies areas of need through and businesses in the West facing significant equity gaps, improved connectivity (e.g. Midlands benefiting from full particularly those at R&D with HS2) and reduced fibre and super-fast 5G stages. congestion. mobile coverage. – Engage with 2,000 – Transform transit links – Productivity benefits across organisations in the next 5 alongside new high quality/ local authorities and schools years including 128 SMEs high density housing. are estimated at around who will be product testing by £50m. – Support inclusive growth. March 2022. – Wider productivity boosts are – Encourage modal shift from estimated to be £200-290m private car. over a seven year period. 5G – Deliver local environmental will improve regional and safety benefits. productivity and according to Barclays, is expected to – Estimated overall scheme boost the Midlands economy Benefit:Cost ratios are by £1.9bn of business between 2.0 and 3.0. revenue per annum by 2025.

Ready-to-go project 14 Providing attractive bus Upgrading rail services Enhancing local services through Sprint connectivity • £84m • £61m • Summary: Investment in the • £86m • Summary: Development of the West Midlands Rail Programme, • Summary: Acceleration of Sprint network linking strategic including upgrading University various other projects to centres and local communities and stations and enhance local connectivity, to key areas of growth based on delivering a step change in rail including improvements to a bus rapid transit system (as an access, in part by bringing back Dudley Interchange and the alternative to cars); the focus is closed lines and stations at major roads network at Birchley on the A34 route between , , , Island and the A454 from Walsall and Birmingham, and and Hazelwell. Wolverhampton to Walsall. the A45 between Birmingham • Benefits: • Benefits: and Solihull. – Provide improved access to – Remove barriers to growth, • Benefits: the , job creation and economic – Improve journey times and UHB and new Life Sciences development by improving reliability from the Black Park. accessibility. Country, through Birmingham – Remediate land. – Reduce traffic related delays. City Centre, to Solihull and the Airport. – Increase passenger flow. – Improve safety. – Increase the proportion of – Reduce congestion on key – Improve walking/cycling West Midlands residents able route network. facilities. to access three or more – Provide access to the – Enhance public realm. strategic centres within 45 Darlaston Enterprise Zone minutes by public transport. and help to unlock 8,000 new – Increase capacity and passenger numbers. – Stimulate modal shift from homes. car to Sprint and other public – Estimated overall scheme – Reduce exposure to harmful transport. Benefit:Cost ratios are emissions. – Improve access to the between 2.3 and 9.7. – Reduce severance. strategic cycle network. – Estimated overall scheme – Environmental benefits from Benefit: Cost ratios are the use of zero emission between 1.8 and 3.3. vehicles and reduction in car trips. – Estimated overall scheme Benefit:Cost ratio is 3.0.

Ready-to-go project 15 Regenerate brownfield sites and build new homes

In recent years, the urban renaissance in the West Midlands has seen major investment in key infrastructure such as HS2, a national reputation for brownfield regeneration and bold new policymaking (eg affordable housing and AMC). The region has achieved a record increase nationally in the number of new homes delivered each year and has exceeded its targets agreed with the Government in the Housing Deal of 2018. Our comprehensive recovery proposals are aimed at tackling both the immediate issues of unlocking stalled and difficult to deliver sites, alongside fundamental investments to provide the affordable homes, urban regeneration, inclusive growth and supporting infrastructure required post-pandemic. To achieve this, we will be accelerating a targeted investment of £674m to bring forward 35,000 additional new homes – of which over 20,000 are affordable. These will reinforce market confidence in the region as the place to invest and develop as we push ahead with our ambitious inclusive growth agenda to lead the nation’s recovery. Our proposals involve:

Unlocking new housing and Delivering additional • Benefits: employment opportunities affordable housing through – Delivery of 20,000 additional through the Urban a new Regional Affordable affordable homes above and Transformation Fund Housing Fund beyond those already assigned and planned for. • £200m • £400m – Support 23,400 job years in • Summary: The West Midlands • Summary: The West Midlands construction in the short- will use this fund to enable rapid proposes a new affordable term. expansion of its brownfield housing fund to enable a step regeneration programmes and change in affordable housing to bring forward its pipeline of supply across the region that will brownfield sites. The initial focus meet the housing needs of will be on development projects residents and support economic which can start on site within the recovery. This builds on the next 6-12 months, showing West Midlands’ detailed immediate visible impact of understanding of the affordable recovery. Rapid decision making housing challenges facing our will de-risk projects and provide region and track record of greater certainty to the market. deploying devolved housing funds to tackle worsening • Benefits: affordability. A key part of this – Leverage further investment programme will be to establish a of up to £800m and landmark £50m “Homes for increased market confidence. Covid Heroes” programme delivering new homes for – Delivery of at least 15,000 essential workers who have kept new homes on urban the country safe and supplied brownfield sites. during the pandemic. – Support 11,720 job years in construction in the short- term.

Ready-to-go project 16 Making the West Midlands – Creation of 250 job years in construction of the NBI in the a national centre of short-term, with a multiplier excellence for brownfield effect throughout other regeneration, including related sectors over time. through establishing a new National Brownfield Institute in Wolverhampton

• £24m • Summary: The development of a new National Brownfield Institute (NBI) to create a world-class brownfield regeneration industry cluster through multi-sector partnerships, based at the University of Wolverhampton. Funding is required to support capital investment and operating expenditure for three years to create the NBI, before external income enables it to become self-sustaining. • Benefits: – Accelerated remediation and development of brownfield sites, especially across the West Midlands. – Better and quicker access to relevant high-quality data and research. – Greater collaborative research and development, leading to increased use of new technologies enabling brownfield development. Ready-to-go project 17 Supporting the • Benefits: development and – Strategic investment in the deployment of Advanced land, technology, skills and facilities needed for 21st Manufacturing in century innovation in Construction (AMC) homebuilding and through a new Regional construction. AMC Accelerator Fund – A new generation of built environment experts and a £50m new pipeline of construction • Summary: we propose a £50m skills and careers enabling fund to accelerate the opportunities focused on development and the use of enhanced digital and Advanced Manufacturing in manufacturing expertise. Construction techniques across – Development of new skills the West Midlands. This fund and employment delivery, will support the delivery of the specifically high-level digital land, skills, factories and and manufacturing skills. technology that are needed to enable our AMC industry to – Local materials processing, grow and thrive. Our ambition is manufacturing and for the West Midlands to be the consolidation processes, national and international limiting import reliance. epicentre of AMC – building from our unique manufacturing heritage and track record of housing and employment delivery. We are committed to transforming the way we build homes in the region and beyond, shifting the focus to precision manufacturing, mass production and customisation and ensuring high quality jobs and private sector investment flow from that.

Ready-to-go project 18 19 Get people back into work

As home to a young and ethnically diverse population, our region has been disproportionately exposed to the negative jobs impacts of the economic crisis. There is a risk that without urgent intervention, young people and new graduates are at risk of entering the labour market during a severe downturn, exposing them to the risk of unemployment and longer-term scarring effects. Similarly, many older workers, including those in the automotive and manufacturing sector have lost their jobs or have been furloughed. Our skills packages will support 154,400 young people and workers who are vulnerable to unemployment through apprenticeships and retraining schemes to return them to work quickly, equipping them with the skills needed for the future, and tracking them to engage them in the labour market, through an investment of £550m over three years. Our proposals are tailored to the specific needs of our young people and workers, and complement vital national-level policy measures to avoid mass unemployment. Our proposals involve:

Supporting young people • Benefits: Getting the West Midlands with training and getting – 38,400 young people to back into work through into jobs benefit from apprenticeship retraining wage subsidies and • £272m • £33m traineeships over three years. • Summary: £167m to redeploy • Summary: Boost to the adult – 45,000 vulnerable young existing Education and Skills education budget in 2020/21 to people to benefit from Funding Agency (EFSA) and support furloughed and tracking schemes and remain apprenticeship levy funding to unemployed workers by offering engaged with the labour provide apprenticeship wage opportunities to retrain into jobs market. subsidies and providing in in-demand sectors that are traineeships and work-related – 9,000 young people to benefit recruiting in the region, such as experience. £105m funding over from funding for additional health and social care, logistics, three years to provide training learning in 2020/21, and and business services, including opportunities in higher level 3-5 18,000 to benefit from higher developing a health and social courses for young people who level 3-5 courses in priority care innovation hub in Sandwell. might otherwise be unemployed, skill areas over 3 years. This will be complemented by enhance tracking schemes and boosting regional capacity to provide additional tuition for support job brokerage activity young people whose learning and better target effective has been disrupted by COVID. employment support, including This is particularly crucial in a making the most of the job and region where the NEET rate is training opportunities created by already higher than the national the Commonwealth Games. average, and is likely to rise Getting people back into work further during this crisis. quickly is especially critical in the West Midlands given that nearly 27% of workers in the region have been furloughed.

Ready-to-go project 20 • Benefits: Upskilling our workforce for • Benefits: – 20,000 workers to benefit jobs of the future – 24,000 adults (8,000 a year) from retraining, enter new to benefit from skills jobs and continue to support • £245m programmes that enable their families. • Summary: Our £60m Future them to move into high- skilled jobs. – Improved effectiveness of job Skills Future Jobs programme brokerage activity across the will deliver higher level 4-5 – The capital investment in FE region, including maximising courses to support adults to colleges will result in an the job and training develop skills to increase immediate short-term opportunities created employability in future growth creation of 600 construction through CWG. sectors, particularly in green jobs, but in the long-term will growth and electrification, 5G result in an increase in and digital, health and life capacity of FE colleges to sciences, advanced deliver new courses and manufacturing and construction T-levels in engineering and etc. We are well-placed to manufacturing, digital deliver this, having already technologies and health and successfully delivered National life sciences. Retraining schemes in digital and construction. In addition, we – CLQ will help safeguard and propose £185m capital funding create 2,300 jobs. to develop the technical facilities in FE Colleges needed to support retraining and the roll out of T-levels. This includes plans to deliver the transformative City Learning Quarter (CLQ) in Wolverhampton, which will bring together the City of Wolverhampton college, Adult education Service and city centre library, upskilling and connecting communities to jobs into high-growth sectors of the future.

Ready-to-go project 21 Back our region’s businesses

The region is home to thousands of SMEs, many of which form part of critical automotive and manufacturing supply chains that have been impacted by the crisis. Targeted regional support will help industries whose demand for products has been most severely impacted in the short-term, but whose capability is critical to the long term success of the West Midlands’ economy. Our proposals will also help turbo-charge business growth, exports, and innovation in the West Midlands by bringing the best of our region’s combined expertise in the growth sectors of the future, safeguarding or creating 43,900 jobs through an investment of £532m. Our proposals involve:

Quickly re-deploying – Help SMEs with financing Investing in Advanced and expertise to switch to industrial engineering and manufacturing these new Manufacturing Excellence research talent to develop products, by providing Programme (Restart, globally competitive expertise and financing. Reposition, Transform) applied technologies, in an – Co-ordinate the joint working • 60m ambitious ’Speed to Scale’ and staffing between • Summary: Programme to manufacturers, researchers programme preserve our SME and the programme. • £382m manufacturing base, help them • Benefits: adapt their supply chains to • Summary: A huge programme become more resilient, and to – Achieve GVA impact of of putting experienced industrial enable them to pivot to in- £2.0bn and create 18,100 engineers and technicians to demand sectors. This jobs. work on inventing and creating customised support programme new globally competitive – Develop applied industrial will leverage Made Smarter products and services in high- technologies which will set up Adoption support structures, potential industry sub-sectors. UK businesses to compete adapt learnings from the Made Funding existing applied globally in 3-5 years and Smarter North West pilot and technology teams in universities beyond. blend local knowledge and data and industry, with this new influx from the West Midlands of talent, the programme will: Business schools and our High – Provide facilities and Value Manufacturing Catapult equipment for project team Centres. We will provide working, rapid design and leadership, technology, business prototyping. and voucher support with an easy to navigate one stop shop – Finance development of new front end provided by our growth disruptive technologies with hubs. In the West Midlands we great flexibility for engineers cherish our manufacturing and researchers to try new heritage and DNA and believe things with little red tape. that every manufacturing – Focused on heat and energy, business deserves the medical technology, mobility opportunity to survive and grow. services and telco We will make it easy for them to connectivity and security. access the right support for them at their stage in the journey towards digitalised manufacturing, diversification and servitisation.

22 • Benefits: programme offering tailored Enterprise Investment trade support and advice to help – Support 13,200 Growth Fund businesses trade out of the manufacturing SMEs to downturn. • Summary: Work intensively with improve their productivity, the Government to co-develop a leadership, profitability, • Benefits: large-scale equity fund, drawing resilience, reduce their – Boost business turnover on experience of focused equity energy use and lower their through new products and funds. This will address the twin carbon footprint, and start processes, with 12,700 challenges of recapitalising and accelerate their journey businesses benefiting from viable firms that have been towards the digitalised and the support schemes. severely impacted in the short- servitised manufacturing term, ensuring they do not future. – Create 6,000 jobs. become overburdened with – Create or safeguard 19,800 – Contributing to achieving the debt, hindering future investment and growth. Second, it will jobs. government’s ambition to raise the value of exports provide equity injections to Creating SME Recovery from 30% to 35% of GDP. high-growth potential firms linked to high quality wrap- Programme (Pivot to – Boosting business around advice. Prosper and Productivity investment, exports and : Factory) productivity over the longer- • Benefits term, contributing to positive – Amplifies private sector • £90m spillover effects throughout investment in high-growth the supply chain and • Summary: A grant to support sectors. positioning the UK as an businesses pivot and adapt their innovation leader. – Strengthens balance sheets business models to deliver so firms are positioned to transformation and a voucher invest and power economic scheme enabling businesses recovery. access professional services advice, and providing dedicated – Accelerates and amplifies support through coaching, regional growth by linking training and peer-to-peer large-scale equity investment mentoring schemes to support to wrap-around public and businesses to diversify business private business support. models, adopt new technology, and boost productivity. This is complemented by a comprehensive trade support programme that will prepare businesses to export post- and a longer-term training 23