The West Midlands, the Best Region in the Uk to Do

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WEST MID LAND S CO M BINED AUTHO R ITY Strategic Economic Plan MAKING OUR MARK...... THE WEST MIDLANDS, THE BEST REGION IN THE UK TO DO BUSINESS 2

EAST STAFFORDSHIRE

TELFORD AND WREKIN CANNOCK CHASE LICHFIELD WALSALL TAMWORTH WOLVERHAMPTON NORTH SHROPSHIRE WARWICKSHIRE SANDWELL NUNEATON DUDLEY BIRMINGHAM AND BEDWORTH

SOLIHULL COVENTRY WYRE FOREST RUGBY BROMSGROVE WARWICK REDDITCHRedditch

STRATFORD-ON-AVON 3 CONTENTS

Section 1 Executive summary...... 5

Section 2 The vision, delivering the vision and objectives...... 11

Section 3 Building on strengths, tackling challenges...... 15

Section 4 The strategy...... 23

Section 5 Actions and priorities...... 29

Section 6 Delivering impact...... 33

Section 7 New ways of working...... 35

Section 8 Priority actions and action plans...... 38

Foreword In the West Midlands we’re rightly proud of our many assets – the people, places and history that make us such a unique region. We’re proud of what we’ve achieved, but we’re ambitious to do more. The creation of the West Midlands Combined Authority and the devolution deals on offer from government provide us with the ability to do more for our people and the area and we’re determined to seize this once in a generation opportunity to deliver faster, better change for the future. This plan – our Strategic Economic Plan – sets out a bold, ambitious and robust programme, developed by a unique collaboration of businesses, public sector organisations, universities and others who share a passion for, and pride in, the West Midlands. We’re determined to make our mark so that the West Midlands becomes the best place in the UK to do business. 4 5 SECTION 1 Executive summary Executive The SEP has been developed through a powerfulThe SEP has been who have playedcollaboration of organisations and shared their expertise toto their strengths achievableensure the WMCA’s vision is robust, roleand ambitious. In particular, the leading hasuniversities play in economic development of the SEP. been a key factor in the development devolutionIt sets the context for the WMCA’s explains howagreement with Government and be used. Itdevolved powers and resources will devolutionalso sets the scene for subsequent agreements with this and future governments. capacity toThe WMCA provides the scale and and gorespond to the opportunity of devolution growth. Itfurther and faster in enabling economic to, and benefitalso enables the area to contribute programmefrom, the ambitious Midlands Engine transport andwith its focus on skills, innovation, inward investment. The WMCA is determined to seize the opportunities offered through devolution to deliver a robust and ambitious vision for the West Midlands in 2030. Delivering the vision will see the area home to the biggest concentrations of advanced manufacturing in Europe and a major player in the global economy. The area’s innovation infrastructure will play a crucial role in increasing productivity and reforming public services, with the recommendations of the Midlands Engine Science and Innovation Audit informing the WMCA’s approach.

Devolution and the creation of the West Midlands Combined Authority (WMCA) provide the area with a once in a lifetime opportunity to transform the area through a robust and focused programme of change. The WMCA’s vision-led approach to transformation enables ambitious, yet achievable outcomes focused on the issues that matter; the issues that make the biggest differences to the quality of life of the people who live in the area. The SEP’s ambition is based on the recognitionThe SEP’s ambition is based on the Midlands’that, through devolution, the West not only itsassets can be enhanced to benefit residents and businesses, but the entire nation. Economic growth across the West Midlands delivers a better, more successful and more vibrant UK economy, playing a key role in maintaining and improving the UK’s global competitiveness. The SEP is based on an understanding ofThe SEP is based on an understanding itswhat makes the West Midlands different; its locationuniqueness is not simply based on and proudin the heart of the country and a long but itshistory of manufacturing excellence, in innovation andcultural diversity, its track record populationits potential to support a young, diverse villages andto flourish across its cities, towns, countryside. This strategic economic plan (SEP) sets out theThis strategic economic strategy and actions to improvevision, objectives, for everyone who lives and worksthe quality of life developedin the West Midlands. It has been of people,and agreed by a wide partnership share a prideorganisations and businesses who unique assets,in, and ambition for, an area with challenges and opportunities. EXECUTIVE SUMMARY EXECUTIVE SECTION 1 6 Executive summary life ofeveryoneinthearea. and revenues,butaboutimprovingthequalityof expenditure andtheincomeraisedthroughtaxes £3.9billion ayearbetweenthelevelofpublic is notjustaboutreducingthenetdeficitofaround of peopleintheWestMidlands.Transformation service reformandthetransformationoflives The WMCA’sstrategyalsofocusesonpublic complex area. to makesustainablebreakthroughsinthisvery Skills Commissiontofocusontheactionneeded the WMCAhasestablishedaProductivityand Midlands isvitaltoachievingtheSEP’svisionand The drivetoimproveproductivityacrosstheWest and willparticularlyhelpyoungerpeople. alternative tenureslikemutualhomeownership the WestMidlands,givingpeoplemorechoice, will improvethequalityoflifepeopleacross the area.Agreaterandbroaderrangeofhousing skills todriveaknowledge-ledeconomylivein proportion ofhigherincomehouseholdswiththe rent acrossthearea,includingattractingagreater and moresustainablemixofhomesforsale economic growthandtoprovideabetterrange acceleration ofthehousingmarkettosupport higher volumeofhousing.TheWMCAwillensure remove barrierstodevelopmentcreatea The keytosuccessfulgrowthwillbework best educationandtraining. need, andpeopleofallageshaveaccesstothe support sotheiremployeeshavetheskillsthey national average,thatemployershavetheright levels oflocalpeoplematchandthenexceedthe multiple disadvantages.Itwillensuretheskill lives intheWestMidlands,especiallythosefacing It willimprovethelifechancesofeveryonewho Balanced growthwillbenefitthewholeregion. of longhaulflights. international gatewaywithanincreasingnumber further developmentofBirminghamAirportasan be strengthenedbythearrivalofHS2and a significantcompetitiveadvantage,whichwill High qualityconnectivity,byrail,roadandair,is harnessed bytheWMCA. sector intheareaforfurthergrowthwillbefully successes; thestrongpotentialofcreative an increasinglysignificantroleinthearea’s creative, digitalandlifesciences,areplaying a numberofgrowingdynamicsectors,including in advancedmanufacturingandengineeringbut investment. Thecoreofitseconomicstrengthis the areaisanationalleaderinattractinginward grown fasterthanthenationaleconomyand for growth.Inrecentyears,itseconomyhas Rover toCadbury,providesastrongfoundation from CarilliontoMoogandJaguarLand hundreds ofgloballycompetitivebusinesses The WestMidlands’economy,alreadyhometo and supportingtheageingpopulation. capability anduntappedassetsincommunities demand, reducingdependency,growingthe life chances,healthandwellbeing,preventing improve thequalityoflifepeople,improving health. TheWMCAplanstodeliverservicesthat and improvingemployment,skillsmental with complexneeds,reformingcriminaljustice an initialprogrammeofactivitysupportingpeople The publicservicereformprogrammeincludes and technology. and organisationsanewapproachtopeople services throughpoolingbudgetsacross opportunity forafundamentalchangeinpublic without radicalreform.Devolutionprovidesthe resources willnotdeliveracceptableoutcomes often, failstomeetneeds.Projectedlevelsof fragmented andover-centralisedand,too The currentsystemofpublicservicesis 7 SECTION 1 Executive summary Executive The area’s vibrant cities and towns are vibrant cities and The area’s and countryside by villages complemented to, and enjoyed by,easily accessible that are the patchwork of urban andmillions of people; stretching across the Westrural environments the area’s unique qualities andMidlands adds to all play an important role incharacteristics and future prosperity. shaping the area’s of the population is a majorThe cultural diversity advantage for the areaeconomic and cultural of pride in place and highlyand the strong sense through the cities,developed local identity that runs is keytowns and villages of the West Midlands The mix ofto the successful delivery of the SEP. unique collectionassets across the area provides a will be fullyof strengths and opportunities that harnessed in the coming years. of theThe West Midlands is home to some UK, with anmost innovative businesses in the innovation andexcellent infrastructure supporting of itsR&D, drawing on the skills and resources institutes.universities, science parks and research to extend theThe SEP recognises the opportunity businesses,use of this infrastructure to more building on current success in developing manufacturing and engineering excellence. drive publicUniversity expertise will also help the evidenceservice reform and, crucially, provide base to ensure, for the first time, confidence in proving what interventions work to transform people’s lives. Despite these strengths, forecasts suggest that on current trends the output gap between the West Midlands and the rest of the UK will widen between now and 2030. This is attributable to the large number of low value companies in low growth sectors, the low business birth and survival rates in some areas, and the comparatively high number and proportion of residents with low skills and, in many cases, no formal qualifications. Productivity is constrained by poor life chances caused by issues like poor mental health, worklessness in households and complex needs. Alongside high value manufacturing in the Black Country and extensive research and development (R&D) assets and the automotive industry in the south and east of the conurbation, cultural diversity is increasingly reflected in the economy, with nationally significant environmental and cultural assets such as Shakespeare’s birthplace and as part of the wider Local Enterprise Partnership (LEP) geography Ironbridge, supporting a high quality of life. The area’s economic geography is a massiveThe area’s economic geography is at its heartasset, with Birmingham city centre Wolverhamptonand the two cities of Coventry and potential.well placed to build on their significant areThe growth opportunities at UK Central ofmanifold, while the surrounding areas andsouthern Staffordshire, north Worcestershire strengths inWarwickshire bring complementary offers.terms of business, housing and leisure HS2 presents an unprecedented opportunity toHS2 presents an unprecedented opportunity world-classestablish the West Midlands as a connectivitybusiness location. It will transform chainadvantages, provide significant supply andopportunities for leading engineering a focus inconstruction businesses and provide driving up skill levels. The UK Central growth corridor – linking growth corridor The UK Central Coventry - is already Solihull and Birmingham, success and HS2 part in delivering playing a connectivity in Britainwill further transform to underpin the re-balancingwith the potential With travel time fromof the British economy. of just 38 minutes it will be aLondon to Solihull project for the West Midlandstransformational ensure that HS2’s potential isand the WMCA will a wider transport strategy, setfulfilled as part of strategic transport planout in the West Midlands’ “Movement for Growth”. SECTION 1 8 Executive summary output acrosstheregional economy. Gross ValueAdd(GVA)–creatinggreatertotal three LEPplansalongsideanadditional£7billion 50,000 morejobsthanoriginallypredictedinthe contribution tothenationaleconomy;delivering strengths andpotentialtomakeabigger plus model,whichbuildsontheWestMidlands’ strategic economicplansthroughtheeconomy has beenpredictedinthethreeindividualLEP The SEPenablesfurtherandfastergrowththan devolved toit. about theuseofresourcesthathavebeen framework toenabletheWMCAtakedecisions level. TheSEPalsoputsinplacethestrategic scale towarrantattentionatacombinedauthority importance acrosstheareaand/orofsufficient replaces them.Itfocusesonactionofstrategic supports theLEPs’individualSEPsratherthan deal andthisSEP,whichcomplements ever beforethroughtheWMCA,devolution more coherentlyandatagreaterscalethen These issuescannowbetackledmoreeffectively, • • • • • • • outstanding challengesremainandinclude: last fiveyearshasbeenimpressive.However, through thedeliveryofindividualSEPsover have beenactingtotacklethisandprogress, Councils andLEPsacrosstheWestMidlands aspirations forgrowth. accelerating therateofhousebuildingtomatch employment bringing forwardlandforhousingand require businesses haveaccesstotheskillsthey improving skillsbaseandensuringthat rates inpartsofthearea boosting businessbirth,survivalandgrowth improving roadandrailinfrastructure the R&Dandinnovationinfrastructure enabling morebusinessestotakeadvantageof shoring activitytotheWestMidlands strengthening localsupplychainsandre- 8. 7. 6. 5. 4. 3. 2. 1. The eightpriorityactionsare: principles. that focusesonpriorityactions,channelsand area andthedevelopmentofastrategicapproach challenges andopportunitiesfacedacrossthe deliver thevisionandisbasedonstrengths, The strategyusestheeconomyplusmodelto economy. evidence forrealgrowthintheWestMidlands’ globally). Inbasicterms,increasedGVAprovides performance againstothersintheUK(and The GVAmeasureallowstheWMCAtotrack the urbancoreandrural areas. growth andcommunitywellbeingthroughout Midlands’ geographytoenableeconomic the mostofscaleanddiversityWest Exploiting theeconomicgeography:making building tosupportincreasedlevelofgrowth. housing planstoincreasethelevelofhouse Housing: acceleratingthedeliveryofcurrent growth. met andeverybodycanbenefitfromeconomic ensuring theskillsneedsofbusinessesare Skills forgrowthandemploymentall: largest infrastructureprojectinEurope. HS2 growth:maximisingthebenefitsof and becomepartofthesector’ssupplychain. and supportingotherbusinessestodiversify growth ofthemedicalandlifesciencessector Medical andlifesciences:enablingthefurther improvements. transformational environmental Environmental technologies:securing area’s vibrantandflourishingsector. Creative anddigital:furtherdevelopingthe supply chains. manufacturing businessesinEuropeandtheir the biggestconcentrationsofhighvalue New manufacturingeconomy:harnessing

9 SECTION 1 Executive summary Executive It is an ambitious plan, but no less than the West Midlands needs and deserves. At the heart of the strategy is the drive toAt the heart of the strategy is the accelerate an improvement in productivity and enable the West Midlands to become a net contributor to the UK exchequer - while improving the quality of life for everyone who lives and works in the area. This SEP outlines in more detail the strengths,This SEP outlines in more detail the the area andchallenges and opportunities facing will take tothe strategic approach the WMCA deliver its vision. The WMCA is focused on taking swift actionThe WMCA is focused on taking swift of activityto deliver its vision and a first phase of a growthis already underway; the creation sector andcompany working with the private accelerateacross the area will support and help the delivery of the SEP. Alongside new ways of working, performanceAlongside new ways governance frameworks, thismanagement and in the rightwill ensure resources are focused fast, flexibleplaces at the right times to deliver businesses,and dynamic change for residents, and villagestheir employees and cities, towns across the West Midlands. A clear mechanism to assess delivery, activity and delivery, activity to assess A clear mechanism is crucial. of proposed interventions the impact a new, bespoke has commissioned The WMCA framework - a Dynamiceconomic modelling Model (DEIM) – to provide aEconomic Impact to measure the economicrobust mechanism The WMCA will developimpact of investments. so it becomes internationallythis unique model renowned and respected. 10 ROUTE MAP

Vision Making our mark.. so the West Midlands is the best region in the UK to do business

Objectives Economic growth Employment and skills Accessibility Business competitiveness and productivity Land Public service reform Housing Environment

Priority Programme actions channels Strategy New Rapid acceleration in manufacturing growth, employment economy and productivity through targeted actions in Creative and key sectors, enhanced digital innovation incubation Environmental and skills development technologies alongside public Medical and Business People

sector reform Place life sciences Strengths HS2 growth Skills for Challenges growth and employment Opportunities for all Housing Exploiting Delivery, the economic geography monitoring and impact Improving productivity evaluation Public service reform Capitalising on innovation 11 SECTION 2 Public service reform will have eliminated thePublic service reform will have eliminated and publicdifferences between taxes raised the healthexpenditure in the area and improved This willand wellbeing of 4.5 million people. between thereduce the gap in life expectancy reducerichest and poorest, increase productivity, economicdemand on public services and enable it will have madegrowth and innovation. Above all, its people canthe West Midlands a place where lead healthier and happier lives. of HS2, theIn 2030, four years after the arrival growth thatWest Midlands will have unrivalled furtherbenefits the region and the country, Itsimproving the UK’s global competitiveness. better lifeeconomic growth will have delivered a betterchances, raised aspirations and created quality of life for all its residents. It will have created an economy and a community that’s dynamic, resilient and flexible, with the ability to meet new challenges, changing environments and different futures. The vision, delivering the vision and objectives vision the delivering vision, The

A new approach to planning and urban design will enable an increased rate of housebuilding and a wide choice of housing, improving the environment and quality of life for everyone who lives and works in the West Midlands. There will be a supply of employment land of national significance - the regeneration of which will have transformed large areas of brownfield land. The West Midlands will be internationally recognised and respected for innovation and businesses will benefit from the area’s innovation support infrastructure, including its network of research, economic intelligence and policy institutes. Local people of all ages will have access to firstLocal people of all ages will have area will be aclass education and training. The - homeglobal modern manufacturing economy of advancedto one of the biggest concentrations Europe, withmanufacturing and engineering in of localits companies being supplied by clusters quality. It willbusinesses with a reputation for high attract people and investment from around the world. The West Midlands will be a place that meetsThe West Midlands will be a place theirpeople’s needs and aspirations throughout healthlives and where everyone’s life chances, area’s manyand wellbeing are improved. The classexisting assets – its diversity, its world villages andcultural offer, great cities, towns, to the rest ofcountryside that’s well connected enhancedthe country and beyond – will be further and celebrated. THE VISION THE DO BUSINESS. MAKING OUR MARK…THE WEST MIDLANDS, THE BEST REGION IN THE UK TO THE BEST REGION MARK…THE WEST MIDLANDS, MAKING OUR SECTION 2 12 The vision,deliveringthevisionandobjectives 5% Healthy lifeexpectancywillraiseto national average higher thanthe per head)willbe in GrossValueAdd-GVA Productivity (measured 62.3 61.5 Men DELIVERING THEVISIONBY2030 years 1 an increasefrom 2.4 An extra national significance employment landof land, forfirstclass of brownfield 1.9 ,600 63.9 62.3 Women jobs million jobs million THE FIGURES ha years 3.9 the areaeliminated expenditure in and public taxes raised deficit between Current billion 1 1 At least formal qualificationsand fewer peoplewithno 4 qualificationsorabove more peoplewithlevel

more than housing with Wide choiceof 1.9 1 56,000 53,000 20,000 businesses -almost more thantoday Home to 50,000 homes million 13 SECTION 2 1 BY 2030... WMCA SMART OBJECTIVES SMART BY 2030... WMCA Value of the businesses in growth sectors will haveValue of the businesses in growth sectors economy increased by 114% to represent 70% of the £1m within threeThe % of start-ups reaching a turnover of years will be above the national average. The area’s environment will be transformed with an additional 1,600 ha of industrial land available and a wide variety of housing stock of 1.9million. The WMCA will be a net contributor to the UK exchequer, no longer a cost centre having eliminated its £3.9bn deficit (based on 2015 levels of tax income and public expenditure). Reduction in the health inequality gap within the population. The healthy life expectancy for men will be raised from the current WMCA average of 61.5 to national average of 62.3 and from 62.3 to 63.9 for women. A wide variety of housing stock of around 1.9million homes Carbon dioxide (CO2e) produced from direct emissions by transport, businesses and housing based on 2010 baseline will be 40% less. GVA per head of population will be on a par with the UKGVA per head of population UK average. average by 2026 and 5% higher than the Average earnings working of age population will be 13% above UK averages with the living wage as the foundation minimum wage Proportion people of qualified NVQ4 to or above will have increased the match national 36% to to average and the number with no qualifications will have fallen 9% to to andmatch then better exceed the national average. Unemployment rate will be below the national average residents withSignificant increase in the percentage of access to jobs and ruralImproved broadband connectivity in urban broadbandareas with 100% of premises having superfast (currently 88%) – an extra 210,000 premises. The vision, delivering the vision and objectives vision the delivering vision, The BALANCE METRIC HEADLINE BALANCE To improve the quantity of high quality, readily available development sites to high quality locations that meet housing and business needs. To improve the productivity (GVA) of businesses, focusing on growth sectors. To secure better for less from public services, improve the life chances and the health and wellbeing of communities A greater and broader range of homes Improved competitiveness through energy and resource efficiency, stimulating new technology and business To improve GVA for the region in lineTo improve GVA for the with the UK average. To improve the balance between the skills that businesses need and the skills of local people so that they have the skills and qualifications to access jobs To improve the connectivity of people and businesses to jobs and markets respectively. 1

HEADLINE Land Health Housing Environment Public sector reform Employment and skills Accessibility Business competitiveness and productivity Economic growth Currently figures only relate to WM Met. area

1 Performance against SMART objectives will be used to inform future priority actions and interventions, to inform future priority actions SMART objectives will be used Performance against and direction The WMCA will track collective progress deals and policy needs. including future devolution (section performance management framework against outcomes in the WMCA’s of travel measured eight). The WMCA will track progress in achieving its vision through objectives which reflect the underpinning objectives which its vision through in achieving will track progress The WMCA geography. balanced across the three LEP principle of benefits Delivering the vision - targets and objectives - targets the vision Delivering 14 15 SECTION 3

Building on strengths, tackling challenges tackling strengths, on Building The three LEPs and the 21 councils who areThe three LEPs and the 21 councils havemembers of the combined authority highersuccessfully worked with business, other privateeducation, the voluntary sector and economicsector partners for years to deliver WMCA and thegrowth and prosperity. Today, the providedevolution deals offered by Government of this work,the platform to accelerate the pace achieve a step change in the area’s aspirations, make the most of a unique asset base and connect people to jobs across the West Midlands. In developing its strategy the WMCA has taken advantage of the scale provided by the combined authority, its three LEP geography and existing close partnership work between the LEPs and private and public sectors. The strategy is ambitious, but themes, action plans and programmes outlined in this SEP have been developed as a result of evidence based understanding of the strengths of - and challenges for - the area. This understanding underpins the vision, acts as a framework for the strategy and ensures outcomes are deliverable and improves the quality of life of people in the West Midlands.

But simply increasing productivity is not ambitious enough or good enough for this area and its people. Growing a more successful and better balanced economy means addressing the disconnect between the skills that people have and the skills that businesses need. It depends on securing long term investment, tackling long businessskills, transport, around challenges term support, housing need and addressing the need for public service reform. The vision focuses on the West Midlands’ uniqueThe vision focuses on the West Midlands’ asset base which will help the area capitalise on the opportunities offered through the creation of the combined authority and the devolution deal. Accelerating the rate of improvement in productivity across the area is a key driver and the major challenge ahead. CHALLENGES robust andThe WMCA’s vision is based on a strengths,realistic understanding of the area’s ensure itsweaknesses and opportunities, to sustainablestrategy delivers fast, flexible and on what’schange for the better. It aims to build challengesalready working, while tackling the faced across the West Midlands.

STRENGTHS, TACKLING TACKLING STRENGTHS, BUILDING ONBUILDING SECTION 3 16 Building onstrengths,tacklingchallenges • • • • Midlands Enginekeythemesare: closely totheprioritiessetoutinthisSEP.The have agreedtocollaborateformallyalignvery themes onwhichMidlandsEnginestakeholders itself toinvestorsandtradepartners.Thekey Growth willallowthewiderregiontopromote Active involvementintheMidlandsEnginefor faster inenablinganddeliveringeconomicgrowth. respond toopportunitiesandgofurther ensure theareahasscaleandcapacityto Generally, theWMCAdeliversplatformto the WMCAtoprioritiseinvestments. This isnowunderwayandtheresultswillenable level, aswellthewiderMidlandsEnginelevel. and opportunitiesattheWMCAindividualLEP will helptheWMCAidentifyspecificchallenges The MidlandsEngineScienceandInnovationAudit manufacturing andengineeringexcellence. building onsuccessalreadyachievedindelivering the useofthisinfrastructuretomorebusinesses, institutes. Thereisamassiveopportunitytoextend class universities,scienceparksandresearch drawing ontheskillsandresourcesofworld innovation andresearchdevelopment, infrastructure alreadyinplacetosupport innovative businessesintheUK,withexcellent The WestMidlandsishometosomeofthemost Strengths andopportunities employer demand. skills, ensuringthatskillsprovisionistailoredto Science andInnovationAudit innovation, includingtherecentlyannounced investment strategyforthewiderMidlands Midlands Connect,alongtermtransport best potentialforinwardinvestment promotion, focusingonthosesectorswiththe only four across the country. only fouracrossthecountry. Coventry isatop50globalstudentcity–oneof to theregion’seconomy–aswellitsliveability. of thestrategicimportanceculturalsector as notonlyastatementofintentbutreflection matched bytheWMCA’sendorsementofbid become UKCityofCulturein2021.Itsambitionis history andwidespreadlocalsupportforitsbidto Coventry isawalkablecitycentrewithrich the plan. Wolverhampton –alsoplayanimportantrolein The area’stwoothercities–Coventryand responsive development. within acarefullydesignedandenvironmentally Airport, theNECandrailmetroservices seamless integrationbetweenHS2,Birmingham Solihull willprovideaninternationalgatewaywith interchange stationandHubatUKCentralin UK Central,Solihull.Equallysignificant,the hour awayfromBirminghamInternational. is operational,CanaryWharfwillbelessthanan National CollegeforHighSpeedRail.OnceHS2 based inBirmingham,whichwillalsohostthe national constructionheadquarterswillbe Birmingham’s pivotalroleinthecountry.HS2’s Birmingham citycentre–willmassivelyreinforce area’s twonewstations–CurzonStreetin The arrivalofHS2in2026andonethe of lifeindex. the bestcityoutsideLondoninMercerquality a year,thecityhasfiveuniversitiesandisratedas Ballet. Thecity’svisitoreconomyisworth£6billion Symphony OrchestraandBirminghamRoyal institutions suchastheCityofBirmingham is hometointernationallyrespectedcultural around 220,000people.Birminghamcitycentre outside London,with21,000companiesemploying – andtheleadingcentreforfinancialservices Birmingham citycentre.Akeyeconomicasset 17 SECTION 3 Building on strengths, tackling challenges tackling strengths, on Building The European Bioenergy Research Institute is Research Institute Bioenergy The European at the Heritage Hub Aston and the Digital based at works with museums, of Birmingham University small businesses. The Dairygalleries and many Centre is co-located withCrest Food Innovation Harper Adams University. Institute of PhotonicAston University’s is an internationallyTechnologies (AIPT) centre in the field of fibre- recognised research optical communications, nanooptics, high-speed nonlinear photonics andmaterials and photonics, It engagessmart optical sensing technologies. fromwith a range of West Midlands’ businesses, healthcare to transport and manufacturing. providingResearch and technology organisations, researchbusiness-to-business and government and innovation services, include Warwickshire’s engineering,HORIBA MIRA, delivering advanced research and product testing. Innovative sector support organisations Healthinclude the West Midlands Academic Midlands,Sciences Network, Medilink West Alliance,the Rail Alliance, Midlands Aerospace BirminghamSustainability West Midlands and Midlands’Smart City Alliance. Collectively West two Europeanorganisations are core partners in centres inCommunity knowledge and innovation climate change and health. Innovation infrastructure. The West Midlands has a first class infrastructure to support innovation and research and development. This draws on the resources of the universities in the area and institutions like the Manufacturing Technology Centre, the Warwick Manufacturing Group, the Institute for Translational Medicine and the High Value Manufacturing Catapult. Aston, Birmingham and Warwick are three of the six partners in the Energy Research Accelerator recently announced by HM Treasury, funded as part of the Midlands Engine for Growth initiative and STEAMHouse at Birmingham City University has recently been awarded HM Treasury funding to establish a new creative and digital cluster. Innovation. The area’s universities, including institutions,broad-based, research and specialist house manyand six science and research parks businesses.innovative start-ups and growing Birmingham University leads the UK Hub for Quantum Technology for Sensors and Metrology and Coventry University’s Institute of Advanced Manufacturing and Engineering is the UK’s first “faculty on the factory floor”. Global concentration. The area has a globally advancedsignificant concentration of leading manufacturing and engineering businesses, in thewith a particularly high concentration areBlack Country. Many of these businesses chains,firmly rooted in international supply such asmanufacturing essential components systems. aerospace actuation and transmission UK Central growth corridor and connectivity.UK Central growth the West Midlands’ alreadyHS2 will further boost advantages; the area is alreadystrong connectivity train. Theless than an hour from London by Birmingham,UK Central growth corridor from through Solihull to Coventry is supporting role ofsuccessful growth and the increasing gateway.Birmingham Airport as an international Wolverhampton city centre has a growing cluster has a growing city centre Wolverhampton centre and a distinct city institutions of educational of direct motorwayoffer. The contribution cultural important to the success of theaccess has been and the existence of clustersi54 enterprise zone business across the area –of globally competitive Moog and JLR to Cadbury - forfrom Carillion to connectivity is key. which first class SECTION 3 18 Building onstrengths,tacklingchallenges innovation. innovation. innovation ecosystemandactsasavoicefor stakeholders, aimstomaintainathriving City, anallianceofpublic,privateanduniversity health, mobilityandenergy.BirminghamScience development ofintelligentsystems,initiallyin is establishingaconsortiumtoacceleratethe innovation auditsandthecombinedauthority securing oneofthefirstwavesscienceand The MidlandsEnginehasbeensuccessfulin Optegra Eyehospitalonsite. has aleadingoptometryschoolandhostsan neurodevelopment inhealthanddisease.Aston integrated researchenvironmentforthestudyof research facility;andtheAstonBrainCentre,an Medicine (ITM),anewworldclassclinical in Birmingham;theInstituteofTranslational UK Centreformusculoskeletalageingresearch Centre (NIHRSRMRC);theArthritisResearch Reconstruction andMicrobiologyResearch National InstituteforHealthResearchSurgical Trust andtheUniversityofBirmingham; University HospitalBirminghamNHSFoundation Unit ingastrointestinalandliverdiseaseatthe for HealthResearchBiomedical UK foraround40years);theNationalInstitute dental hospitalandschooltobebuiltinthe dental hospital(thefirstintegrated,stand-alone (and soonAston),alongsideBirmingham’snew medical schoolsatBirminghamandWarwick University andhealthpartnershipsinclude Tata Motors. Manufacturing Group,JaguarLandRoverand joint venturebetweentheUniversity’sWarwick Automotive InnovationCentre(from2017),a Railway ResearchandEducation)National university partnerships(BirminghamCentrefor (Warwick), oneoffourNetworkRailstrategic the NationalAdvancedPropulsionCentreHub (High TemperatureResearch;Birmingham), the RollsRoyceUniversityTechnologyCentres University andbusinesspartnershipsinclude 3 2 Most recently intheBarclays UKProsperityMap. B etween 2010and2013 theannualaveragegrowthratefor GVAperheadfortheWMCAareawas 3.2%comparedto2.5%nationally. London andtheSouthEast calculated tobethemostprosperousareaoutside between 2010and2013 Midlands grewfasterthanthenationaleconomy Growing economy.TheeconomyoftheWest businesses. internationally significantclusterofdigitalgaming intelligent mobilityandLeamingtonSpahasan Businesses inCoventryareleaders Goldman Sachs10,000SmallBusinesses. growth onhighprofileprogrammessuchas hundreds ofSMEstosupporttheirbusiness Gold status,andhasexperienceofworkingwith schools nationallytoholdSmallBusinessCharter sectors. Astonisoneofonlythreebusiness digital, lifescienceandcreativecultural any UKcityoutsideLondon.Thisincludesgrowing registered inBirmingham2014,thehighest reported that18,337newbusinesseswere Vibrant businessbase.Start-upBritainrecently the area. and developmentinnovationtobusinessesin demonstrate thevalueofinvestmentinresearch potential providesanimportantopportunityto process innovation.HS2anditssupplychain of firmsinthecountryengagedproductand Black Countryhasoneofthelargestproportion volume ofresearchpublishedintheirarea.The Birmingham andSolihullscorewellonthe Both CoventryandWarwickshireGreater expenditure onresearchanddevelopment. and Warwickshiretopaleaguetableofbusiness This innovationinfrastructurehashelpedCoventry period from £299billion to £287billion. period from£299billionto£287billion. – comparedwithanationalfalloverthesame year ofexportgrowth–upfrom£27billionin2013 This wastheWestMidlands’sixthconsecutive in theareaexported£28.6billionworthofgoods. 2 . On many counts, it is . Onmanycounts,itis 3 . In 2014 businesses . In2014businesses

19 SECTION 3 Building on strengths, tackling challenges tackling strengths, on Building More than three quarters assets. More than Environmental (78%) is rural. LEP geography of the three way indicator of the is an important Greenspace the towns and cities they live in,people can enjoy measure having green spacewith an important of where people live andsites within 300 metres to the countryside.the ease of accessibility LEP geography,Use of land. Outside the three there is a real opportunitybut part of the WMCA, of commercial and residentialthrough the range with a delivery modelpublic land in Telford, signed withestablished through a Land Deal (HCA).the Homes and Communities Agency sites andThis will deliver strategic employment a potential basishousing - and will be reviewed as across thefor further development of the model combined authority. Skills base. Both a strength and a challenge. cite the skilledMany West Midlands businesses success,workforce as a key factor in their andparticularly in high value manufacturing, as digital andincreasingly in other sectors such notably JLR,creative. Major businesses, most base andare actively contributing to that skills SkillsLEP initiatives such as the Black Country provisionFactory are brokering bespoke training skills of theirto enable employers to increase the workforce. Quality of life. The West Midlands’ cultural, are key to itsenvironmental and heritage assets complementingeconomic strength and potential, the core Birmingham offer. Stratford is a town of international standing (welcoming nearly five million visitors a year, spending £336million), as is the World Heritage Site at Ironbridge, near Telford. The rural environment - the wealth of historic market towns and villages and the countryside around places like Cannock Chase, an area of outstanding natural beauty, all support a high quality of life across the area. Greater Birmingham and Solihull LocalGreater Birmingham and Solihull highestEnterprise Partnership has the second the countryproportion of under 15 year olds in is fourthat 20.9% and The Black Country LEP people areat 20.6%. Across the WMCA 740,000 under 15 (20.3% of the population). Young people. The WMCA has the highest under inproportion of people aged 24 and average ofEngland – 32.7%, compared to an 30.4% across all LEP areas. The West Midlands is proud The West Midlands Cultural diversity. – a mix of cultures,of its diverse communities languages. This diversityidentities, faiths and baseis increasingly reflected in the business and cultural and retail offer, underpinning links.internationally important economic The area is a national leaderinvestment. The area Foreign investment. Coventry foreign direct in attracting the employment has double and Warwickshire firms than the UK average.share in foreign owned Birmingham and SolihullIn 2014/15 the Greater number of foreign directLEP had the highest successes and the highestinvestment (FDI) arising from FDI of all LEPs.number of new jobs SECTION 3 20 Building onstrengths,tacklingchallenges area. currently beingtheonlynetcontributorto £19.8bn andexpenditure£24.1bn),withSolihull deficit risesto£4.3bn(incomeisestimatedbe Focusing onthemetropolitancouncilsalone to be£30.7bnandpublicexpenditure£34.6bn). at approximately£3.9bn(taxincomeisestimated LEPS arecostcentreswithanetdeficitestimated and expenditureforthearea,showingallthree the challengeisclearfromanalysisofincome net contributortotheUKexchequer.Thescaleof Net deficit.TheWestMidlandsmustbecomea work onpublicservicereform. which isthefocusofcombinedauthority’s different waysofachievingtherightoutcomes, better. Allocativeefficiencymeansfindingwholly former isaboutdoingwhatdonenow,but between technicalandallocativeefficiency.The points outthatitisimportanttodistinguish The government’sPublicSectorEfficiencyGroup the recognitionthatpublicservicereformiskey. SEP reflectsthisneedinitsstrategicprioritiesand Midlands mustincludepublicservicesandthe Any efforttoboostproductivityacrosstheWest Country 87. and Warwickshireitis91fortheBlack Birmingham andSolihullitis91.4,forCoventry for theWestMidlandsareais89.7,Greater for GVAworkedperhouras100,theaverage below thenationalaverage;takingUKfigure trend. ProductivitylevelsintheWestMidlandsare implied byasimplecontinuationofthepre-crisis improve in2013,butisstill16%belowthelevel economy outputperhourworked–startedto Midlands. Productivity–measuredbywhole productivity isaparticularchallengefortheWest Low productivity.Whilethisisanationalissue, Challenges £22bn. annual GVAintheareawouldincreasebyaround profile oftheareamatchedEnglandaverage with highlevelsofworklessness.Iftheskills spatial concentrationsoflowskilledcommunities proportion withdegreelevelskills.Thereare people withnoskillsandalowerthanaverage area thereisahigherthanaverageproportionof compounded byanageingworkforce.Acrossthe Skills. Manybusinessesfaceskillsgaps managerial andleadershiplevel. addressing theskillschallenge,particularlyata in advancedmanufacturingandengineering innovation, applyingthelessonsfromsuccesses that investinresearchanddevelopment This callsforincreasingthenumberofbusinesses productivity andpublicservicereformobjectives. A relentlessfocusoninnovationiskeytoachieving with researchandinnovationcentres. driving businessinnovationthroughpartnership assets allowstheWestMidlandstotakealeadin The richnessofuniversityandpublicresearch 16% withgovernment/publicresearchinstitutes. are cooperatingwithuniversitiesandonlyabout Nationally, oftheinnovatingfirms,lessthan25% exploiting theinnovationsupportavailable. is determinedtoensureallbusinessesarefully of innovationinactivebusinessesandtheWMCA in 2010survey),therearestillahighproportion levels inthelastfiveyears(44%innovationactive Midlands hasshownoneofthehighestgrowth is abovethenationalfigure(53%),andWest active (BIS2015InnovationSurvey).Althoughthis Only 56%ofcompaniesintheareaareinnovation enabled businessestoaccessinnovationsupport. Manufacturing AdvisoryService(MAS),which erosion ofnationalprogrammes,suchasthe This situationhasbeencompoundedbythe who arenottakingadvantageofthisstrength. to focusonthoseWestMidlands’businesses infrastructure acrossthearea,workneeds research anddevelopmentinnovation Innovation. Despitethestrongandextensive 21 SECTION 3 Building on strengths, tackling challenges tackling strengths, on Building Connectivity and congestion. The area’s unique connectivity advantage is at risk as a result of increasing congestion, particularly on the motorway and strategic network. Poor broadband access in Warwickshire, rural Solihull and some city centre and business areas is a particularly serious challenge given the potential of mobile, digital and wireless technologies to contribute to improved productivity, in addition to being a key growth sector in itself. Building homes. The economic vision assumes is currentlya higher level of housebuilding than or is beingprovided for in development plans, housingdelivered across the area’s two strategic face a majormarket areas. Planning authorities challenge in meeting current levels of housing need individually and collectively, with many sites difficult to develop because of their size, condition and the current shape and business model of the house building sector. Sites for employment use. The area’s good track is in dangerrecord of securing inward investment shortage ofof being constrained by an impending costs in landlarge strategic sites with significant in order toremediation and assembly needed employmentbring forward a pipeline of sites for areuse. The outcomes of the Land Commission key to this. Starting and growing business. In parts of theStarting and growing the Black Country, there isarea, most notably of businessan urgent need to improve the level issuebirths and survival and there is a particular of medium-sizedin enabling the continued growth businesses. Too many major Westsupply chains. Too many Foreign located foreign on reliant are businesses Midlands local businesses often because supply chains, quality standards. Thecannot meet their area is to re-shore a significantchallenge for the supply chain, seeking to secureproportion of the of, for example, the £6bna significant share chain opportunities identified byadditional supply the Automotive Council. 22 23 SECTION 4 The strategy The

focuses on skills, employability and wellbeingfocuses on skills, employability and to benefitto enable as many people as possible from new and higher value jobs created fromensures that the whole area benefits of peoplegrowth through improved connectivity to jobs and businesses to markets. Economy plus by an adoptedThe vision and strategy is informed model has beeneconomic forecasting model. The LEP strategicused to review the three individual by 2030 theyeconomic plans and predicts that jobs. could deliver an additional 455,000 enoughWhile this could be seen as an ambitious output gapprogramme, it would not close the with the national average until 2029. However, the West Midlands’ economic strengths and potential mean, the WMCA believes, it is capable of making an even bigger contribution to the national economy. This plan details how the WMCA will, through its SEP, enable further and faster growth on the basis of its economy plus scenario. This will mean the closing of the output gap three years earlier and the delivery of more than half a million jobs by 2030 (49,000 more than the individual SEPs) - generating an additional £7bn GVA. • •

builds on the strengths of areas with relatively high levels of productivity such as Solihull, Coventry and Warwickshire and addresses the significant productivity challenges in other parts of the region, most notably the Black Country creating the conditions for growth, includingcreating the conditions for growth, connectivity and skills exploiting the area’s world class innovation infrastructure improving business competitiveness public service reform – transforming lives in the West Midlands improving the life chances for everyone, especially those facing multiple disadvantages. THE STRATEGY THE • • • • • • Central to the strategy is the principle of balance, ensuring that the whole of the area (geography and people) benefits from growth. This approach: The strategy will deliver this through: At the heart of the strategy is the drive toAt the heart of the strategy is the drive andaccelerate an improvement in productivity a netenable the West Midlands to become while improvingcontributor to the UK exchequer - lives and worksthe quality of life for everyone who in the area. The strategy to deliver the WMCA’s vision isThe strategy to deliver the WMCA’s the area todaybased on a clear understanding of – its strengths, weaknesses and opportunities the priority(outlined in section three) – and drives actions needed for change. SECTION 4 24 The strategy Three growthscenarioshavebeendevelopedandtested: potential tomake abiggercontribution tothenationaleconomy; economic plansthrough the economyplusmodel,whichbuildsonWest Midlands’strengthsand The SEPenablesfurther and fastergrowththanhasbeenpredictedinthethree individualLEPstrategic £20,000 £22,000 £24,000 £26,000 £28,000 £30,000 £32,000 £34,000 • • • An additional168,000jobs average widens output gapwithnational to £26,422,perheadbutthe GVA increasesfrom£19,423 369,000 to4.37m Population increasesby TREND SCENARIO 2015 2016 WMCA SEP WMCA 3LEPSEP WMCA Trend UK 2017 GVA PERHEAD-FUTUREGROWTH SCENARIOS 2018 2019 • • • An additional455,000jobs average in2029 surpassing thenational average andtherefore, £32,256 -101%ofthenational GVA perheadincreasesto 510,000 people. Population increasesby 2020 3 LEPSEPSCENARIO 2021 2022 2023 2024 2025 • • • of 504,000 resulting intotaljobsgrowth individual SEPsscenario 49,000 overandabovethe Additional jobsgrowthof the nationalaverageby2026 and GVAperheadsurpassing eradication oftheoutputgap productivity resultsinan The increasedjobsand an additional32,000people The populationincreasesby CA SEP: ECONOMY WMCA SEP:ECONOMY 2026 PLUS SCENARIO 2027 2028 2029 2030

25 SECTION 4 The strategy The Connectivity will system and resilient transport An efficient success. Significantunderpin future economic will help widen labourinvestment in transport high value growth clusters andmarkets, unlock and place making initiatives.support regeneration people access to skills, educationAs well as giving and effective transportand training a balanced agglomeration and reducesystem will enable in accessing the supply chainbusiness overheads and markets. is setThe strategy for how this will be achieved West Midlandsout in “Movement for Growth”, the this andStrategic Transport Plan. Alongside “Midlandsthe Midlands Engine initiative is the provideConnect” programme, which will wider West and East Midlands inter-regional connectivity improvements. significantTogether these strategies will see construction,investment and new infrastructure andwhich will provide long-term benefit businessdirectly support many new jobs and stream willopportunities. A significant work canunpack how West Midlands businesses how sufficientbenefit from this opportunity and duringoperational resilience can be maintained economicconstruction to enable continued growth. using the momentum of HS2 to improve theconnectivity within the area and exploiting corridorstrengths of the UK Central growth Coventry -through Birmingham, Solihull and nationaland between the West Midlands and and international markets being clear about, and developing policies to maximise, the potential of the area’s three cities with their different strengths and potential, including Birmingham’s nationally significant business services, retail and cultural offer, Coventry’s accessibility and Wolverhampton’s potential to become a 21st century university city supporting the powerful economic links between the economic heartland of the West Midlands and the potential for economic and housing growth in the places and communities across the three LEP geography balancing the scale and place-shaping potential of the regeneration opportunities in, for example, the Black Country and Nuneaton and Bedworth with the availability of more easily developed sites in other parts of the area. pilot new ways of working and then scale uppilot new ways of working and then what works across the area on assetsachieve efficiencies and capitalise moreacross the wider geography in delivering innovation and public service reform to maximiseensure that resources are pooled the impact of interventions. • • • • • • of the WestCapitalising on the scale and diversity important inMidlands’ geography will be critically delivering the vision. This will include: • The economy plus model shows that the scaleThe economy plus authority and itsprovided by the combined will enable further, fasterthree LEP geography innovation, increasingprogress in developing public service reform.productivity and securing will benefit from closeIn particular the area the LEPs and private andcollaboration between the area’s ability to: public sectors, strengthening Strategic benefits of a three LEP benefits Strategic geography SECTION 4 26 The strategy • • • will: and skillsmentalhealth.Thisprogramme troubled individuals,criminaljustice,employment programme currentlyfocusesonfourareas: The combinedauthority’spublicservicereform Public servicereform wireless technologies. innovation supportedbymobileanddigital connectivity, andhighqualityscience increased housebuildingandimproved challenge, includingskillsandemployability, comprehensive approachtotheproductivity Government’s productivityplan,adoptinga The WMCA’sapproachmirrorsthatofthe Productivity the WMCAandcurrenteightpriorityactions. (transformational andenabling)drivinggrowthin the relationshipbetweenkeysectors The routemaponpage10illustrates priority actionareas. public servicereformandinnovationunderpinthe At thesametimethreeprinciplesofproductivity, channels. priority actiondetailsactivityineachofthese through thefirstdevolutionagreement.Each resources devolvedtothecombinedauthority and engaging differentchannels–people,business to bedeliveredthroughamixofprogrammes The WMCAhasdevelopedeightpriorityactions principles Priority actions,channelsand Century publicworkforce and understandingtheskills neededfora21st better useofevidence,intelligence andanalysis develop keyenablersfor reform, including region in2016 start aseriesofearlyadoption/pilotsacrossthe departments co-design withtherelevantgovernment carry outaninitialprogrammeofpolicy These draw on the powers and place. Thesedrawonthepowersand

• • this throughcommitmentsto: The devolutiondealwithgovernmentsupports UK’s SmallBusinessResearchInitiative. flexible andlocallyfocusedversionofInnovate reform, suchasthedevelopmentofamore business growthandcontributestopublicsector The WMCAwillsupportinnovationwhichenables research base. impact of,forexample,theregionalandnational to mapstrengthsandmaximisetheeconomic relationships withbusinessesanduniversities for ascienceandinnovationaudittobuildon Midlands Enginetosubmitastrongproposal Support fromGovernmenthasenabledthe emerging technologies. identifying andnurturingcompaniespursuing building onexistingsuccessfulprogrammesand adopting innovationandinvestinginR&D, key prioritytoincreasethenumberofbusinesses in manyoftheSEP’sstrategicpriorities,witha Action tosupportandenableinnovationfeatures Innovation Singapore andScotland.Itwill: similar commissionsinNewZealand,Australia, lessons fromelsewhere,includingthefindingsof in theWestMidlandscontextandcapturing its recommendationsonactionsthatwork adopt anappreciativeinquiryapproach,building The highlighted inthevision: to supportworkinthreekeystrategicareas The WMCAhasestablishedcommissions The commissions to othersourcesofdata. including anintegrateddatasystemandaccess enable thedevelopmentofdatadevolution, and supportimplementation participate intheco-designofprogramme will Productivity andSkillsCommissionwill 27 SECTION 4 The strategy The how services could be transformed within could be transformed how services current resources be shifted to enablinghow resources can well people to keep mentally with mental illness can behow more people helped into employment powers for mentalthe potential for devolved health and wellbeing. andensure that there is sufficient land Midlandsinvestment identified across the West SEP to enable the implementation of this choicesidentify the policy implications and investment. inherent in delivering that land and Evidence based policy that futureThe WMCA is committed to ensuring basis of thestrategic decisions are taken on the the problemempirical evidence supporting both and the solution. The combined authority’s will beresearch strategy explains how this explainingoperationalised, including consistently (their causes,clearly what is known about issues choseneffects and scale), the reasons for interventions (and the strength of evidence behind what(and out rolled be will interventions how this), evidence these decisions were based on), value for money and how the combined authority will evaluate the effectiveness of the intervention. The WMCA remains committed to its aspiration to create a global insititute for insight into economic futures, public service reform and innovation. The commission will explore: The commission • • • • of the Land CommissionThe principal objectives chaired by Paul Marcuse are to: • • Mental Health Commission, chaired by Sir how services could be transformed withinhow services could be transformed current resources how resources can be shifted to enabling people to keep mentally well how more people with mental illness can be helped into employment the potential for devolved powers for mental health and wellbeing. sector-specific priorities exploring productivity in the housebuilding of the paceindustry to enable the acceleration of construction for all skills for the future and employment health and wellbeing. make recommendations to inform policies and to inform policies make recommendations decision-making research and analysisdevelop collaborative advice on productivityto underpin and shape issues and information that improvespublish research of productivity. public understanding • • • • The commission will explore: Norman Lamb MP, is considering the specificNorman Lamb MP, is considering andcontribution that public service reform to the mentaldevolved responsibility could make Poor mentalhealth and wellbeing of the area. for publichealth is a significant driver of demand negativeservices and is having a substantial impact on the economy. • • • The • • • implications for most of theIts advice will have most notably: SEP’s strategic priorities, • 28 WMCA PROGRAMME

£20m £4.4bn EZ HS2 Growth Expansion Package £30m Employment, £1.7bn Education and Transport and Skills £8bn Roads Package 30 year investment £50m programme £1.1bn Business Real Estate Innovation £200m £500m Land Housing Remediation

Public sector reform programme: -19+ adult skills budget

Total Number Area of Focus Spend of £ Projects Employment, Education and Skills 50 15 Land Remediation 18 5 Real Estate 14 18 Housing 21 4 Transport and Road Packages 261 24 HS2 Growth Package 86 7 Regional Growth Fund 6 1 Programme Management 7 1 Business Support 6 2 Total 469 62

Devo 2/ Budget 2016 Announcements: Further projects will be expected with a second devolution deal 29 SECTION 5 Actions and priorities and Actions

HS2 growth: maximising the benefits of the largest infrastructure project in Europe for all: skills for growth and employment areensuring the skills needs of businesses economicmet and everybody can benefit from growth housing: accelerating the delivery of current housing plans to increase the level of house building to support increased level of growth exploiting the economic geography: making the most of the scale and diversity of the West Midlands’ geography to enable economic growth and community wellbeing throughout the urban core and rural areas. people, including a focus on skills, employability, communities and public services business, including competitiveness place, including sites, housing and connectivity. The remaining four priority actions address issuesThe remaining four priority actions levelwhere joint work at a combined authority adds real value: • • • • To ensure effective, focused delivery three core channels will be used: • • •

new manufacturing economy: exploiting the biggest concentrations of high value manufacturing businesses in Europe and their supply chains. creative and digital: further developing the area’s vibrant and flourishing sector. environmental technologies: securing transformational environmental improvements. medical and life sciences: enabling the further growth of the medical and life sciences sector and supporting other businesses to diversify and become part of sector’s supply chain. • • • • PRIORITIES Four of the priority actions relate to particular sectors: These action plans complement the workThese action plans complement the theirdelivered by the three LEPs through of strategicindividual SEPs. They focus on action and the widerimportance across the whole area scale toLEP geography or on issues of sufficient warrant attention at a combined authority level. The eight priority actions, focused through threeThe eight priority actions, focused cross- core channels and supported by three intocutting principles, have been developed separate action plans. ACTIONS ANDACTIONS SECTION 5 30 Actions andpriorities difference tothelivesofitspeople. against –makingitsmarkanda is whattheWMCAshould,andwill,bejudged summary ofthepriorityactionsfollows:this The fullpriorityactionsareinSection8anda devolution deal. underpinned bythecombinedauthority’sfirst A firstphaseofactivityisalreadyinplace, • • • which willachievethevision: to thesuccessfuldeliveryofeightactionplans improvements acrossthesethreethemesarekey action plans.TheWMCArecognisesthatfocused Three crosscuttingprinciplesfeatureinalleight services. services. to increaseproductivityandreformpublic innovation infrastructure-crucialtotheability innovation –buildingonthearea’sstrong the area. between taxesraisedandpublicexpenditurein disadvantages andtoeliminatethedifferences chances forall,especiallythosefacingmultiple of livesintheWestMidlands-toimprovelife public servicereformandthetransformation economy. become anevengreatercontributortotheUK in productivitytoenabletheWestMidlands productivity -acceleratinganimprovement

land remediation fund remediation land

investment to WMCA, WMCA, to investment Commission support remediation

support, inward inward support, access to finance to access access to finance to access of Mental Health Health Mental of design employment employment design commission, land land commission, investment co-design, co-design, investment

business growth, growth, business to business support, support, business to to business support, support, business to discussing outcome outcome discussing skills budget, co- budget, skills HCA, WMCA land land WMCA HCA, support, inward inward support,

Devo deal 2016 deal Devo

Responsibility for for Responsibility Devolved approach approach Devolved Devolved approach approach Devolved Commitment to to Commitment Devolving 19+ adult adult 19+ Devolving £4bn of Investment Joint work with with work Joint Devolved business business Devolved

for SMEs for

increase digitisation digitisation increase

infrastructure, infrastructure, policy issues policy life sciences life invest in R&D in invest three enabling sectors enabling three

and innovation innovation and dimension energy security and and security energy Innovate in healthcare, healthcare, in Innovate encourage SMEs to to SMEs encourage transformational and and transformational deliver three city centres city three

advantage of R&D R&D of advantage skills and innovation innovation and skills technologies, address address technologies, businesses to exploit/ to businesses location of HQs, HQs, of location strategies in seven seven in strategies to ensure capacity to to capacity ensure to and cultural offer of of offer cultural and

businesses to take take to businesses support, exploiting exploiting support, and low carbon carbon low and chain and support support and chain chain, encourage encourage chain, on sector skills skills sector on construction sector sector construction services, retail, leisure leisure retail, services,

Business

Enable more more Enable Intelligent business business Intelligent Innovate in energy energy in Innovate Develop supply supply Develop Hub for rail supply supply rail for Hub Work with business business with Work Work with with Work Exploit business business Exploit

groups of people of groups

the needs of specific specific of needs the targeted activity targeted

employment strategy employment employment strategy employment employment strategy employment employment strategy employment employment strategy employment Zones focusing on on focusing Zones employment strategy employment Investment zones for for zones Investment

People

Employer led sector sector led Employer Employer led sector sector led Employer Employer led sector sector led Employer Employer led sector sector led Employer Employer led sector sector led Employer Talent Investment Investment Talent Employer led sector sector led Employer Geographic Skills Skills Geographic

broadband coverage broadband improvements

congestion, full full congestion, materials devices in connectivity connectivity in

remediation, tackling tackling remediation, broadband schemes, re-use re-use schemes, drugs, diagnostics and and diagnostics drugs, network, invest invest network, building UK Central UK

on land assembly and and assembly land on investment in in investment district heating heating district for development of of development for fully integrated integrated fully unemployed people unemployed approach to house house to approach solutions to maximise maximise to solutions

available, taking action action taking available, product development, development, product efficiency in homes, homes, in efficiency European centre centre European development zones, zones, development activity with with activity planning practice, new new practice, planning offers, transport transport offers,

strategic sites sites strategic to enable wide wide enable to to improve energy energy improve to and West Mids as as Mids West and delivering two two delivering zones for targeted targeted for zones building, develop good good develop building, centres and their their and centres

Place

Making major major Making Open data approach approach data Open Work with business business with Work Promote Birmingham Birmingham Promote Two stations stations Two Skills investment investment Skills Accelerate house house Accelerate Exploit three city city three Exploit

and global markets global and

business in national national in business to other sectors other to health, wellbeing health, GVA gateways

of manufacturing manufacturing of enable its contribution contribution its enable improve environment, environment, improve sciences sector, sciences jobs, additional £14bn £14bn additional jobs, benefit from growth from benefit higher level of housing of level higher place offer and as as and offer place

competitive advantage advantage competitive of strong sector and and sector strong of productivity and and productivity medical and life life and medical HS2 to deliver 104k 104k deliver to HS2 ensure everyone can can everyone ensure development to create create to development cities to economy, economy, to cities

Actions

Strengthen Strengthen Continued growth growth Continued Growth for for Growth Further growth of of growth Further Maximise benefits of of benefits Maximise Meet business need, need, business Meet Remove barriers to to barriers Remove Contribution of three three of Contribution

14 FE colleges FE 14

Heathrow

capital parks, science 6

cities and villages. and cities second only to to only second

Shakespeare Shakespeare Universities, 12

‘Garden towns, towns, ‘Garden times to London London to times

(Birmingham)

a four hour drive hour four a 25yrs Airport –transfer –transfer Airport

forecast to grow to forecast (Coventry) outside London. London. outside (Black Country) (Black

population within within population 500,000 under under 500,000 Birmingham Birmingham

with population population with medicine mobility mobility registrations registrations Technology Jobs Jobs Technology

90% of the UK UK the of 90%

million people people million working age working time to London. to time in translational translational in intelligent intelligent of new business business new of Manufacturing Manufacturing

3 cities cities 3 Home to over 4 4 over to Home 2.5m residents of of residents 2.5m 38 minute journey journey minute 38 World leader leader World Leaders in in Leaders Highest levels levels Highest UK No.1 for for No.1 UK

geography skills and sciences life technologies economy

Housing growth HS2 digital and Creative

Economic Employment and Medical Environmental manufacturing New 31 SECTION 5

New manufacturing Environmental Medical and Employment Economic Creative and digital HS2 growth Housing economy technologies life sciences and skills geography

Uniquely UK No.1 for Highest levels Leaders in World leader 38 minute journey 2.5m residents of Home to over 4 3 cities Manufacturing of new business intelligent in translational time to London. working age million people West 90% of the UK Technology Jobs registrations mobility medicine with population Midlands... Birmingham 500,000 under population within (Black Country) outside London. (Coventry) forecast to grow Airport –transfer 25yrs (Birmingham) a four hour drive times to London ‘Garden towns, 12 Universities, Shakespeare West second only to cities and villages.

Actions and priorities and Actions 6 science parks, capital Midlands Heathrow 14 FE colleges

Actions Strengthen Continued growth Growth for Further growth of Maximise benefits of Meet business need, Remove barriers to Contribution of three competitive advantage of strong sector and productivity and medical and life HS2 to deliver 104k ensure everyone can development to create cities to economy, of manufacturing enable its contribution improve environment, sciences sector, jobs, additional £14bn benefit from growth higher level of housing place offer and as business in national to other sectors health, wellbeing GVA gateways and global markets

Place Making major Open data approach Work with business Promote Birmingham Two stations Skills investment Accelerate house Exploit three city strategic sites to enable wide to improve energy and West Mids as delivering two zones for targeted building, develop good centres and their available, taking action product development, efficiency in homes, European centre development zones, activity with planning practice, new offers, transport on land assembly and investment in district heating for development of fully integrated unemployed people approach to house solutions to maximise remediation, tackling broadband schemes, re-use drugs, diagnostics and network, invest building UK Central congestion, full materials devices in connectivity broadband coverage improvements

People Employer led sector Employer led sector Employer led sector Employer led sector Employer led sector Talent Investment Employer led sector Geographic Skills employment strategy employment strategy employment strategy employment strategy employment strategy Zones focusing on employment strategy Investment zones for the needs of specific targeted activity groups of people

Business Enable more Intelligent business Innovate in energy Develop supply Hub for rail supply Work with business Work with Exploit business businesses to take support, exploiting and low carbon chain and support chain, encourage on sector skills construction sector services, retail, leisure advantage of R&D skills and innovation technologies, address businesses to exploit/ location of HQs, strategies in seven to ensure capacity to and cultural offer of and innovation dimension energy security and Innovate in healthcare, encourage SMEs to transformational and deliver three city centres infrastructure, policy issues life sciences invest in R&D three enabling sectors increase digitisation for SMEs

Devo deal 2016 Responsibility for Devolved approach Devolved approach Commitment to Investment of £4bn Devolving 19+ adult Joint work with Devolved business business growth, to business support, to business support, discussing outcome skills budget, co- HCA, WMCA land support, inward support, inward access to finance access to finance of Mental Health design employment commission, land investment co-design, investment to WMCA, Commission support remediation land remediation fund 32

WMCA INVESTMENT AND INTERVENTION PROGRAMME PROCESS

Vision St ob ra

j t e n

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t g o

n & iv i i

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a a

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u a u P d b D r d

o Pu t r e o

S r P l iv P e ry tion Implementa planning 33 SECTION 6 Delivering impact Delivering The WMCA needed it to be able to prioritiseThe WMCA needed it to be able to and balanceinvestment against its own economic impact ofmetrics, and to understand the likely that investment on net national growth. The DEIM model represents a significant techniquesdeparture from previous modelling in isolation. which could only consider projects investmentsThis model has the ability to consider orof different types and to forecast synergies conflicts in their consequences. The model builds on the latest methodological impactadvancements in city region economic of hardmodelling and can appraise all types infrastructure. These typically include a combination of the transport improvements by mode (road, rail, active), land use changes (e.g. site remediation, drainage projects, public realm) and other types of infrastructure changes including tourism schemes, district heating and so on. Additionally, the DEIM model will extend the scope of previous economic models to soft infrastructure such as skills programmes, including NVQ and apprenticeship schemes and business support, such as access to finance and trade facilitation.

This sort of modelling is a relatively recent phenomenon (the first example being Greater Manchester in 2009) and the techniques used have been developing rapidly in response to new academic evidence on the effects of infrastructure investment on the economy and new funding streams linked to the delivery of net national growth such as payment by results. The WMCA has made a significant joint investment through the commissioning of a new, bespoke economic modelling framework; the Dynamic Economic Impact Model (DEIM) which provides a robust mechanism to measure the economic impact of investments in a spatial context. Members of the WMCA Board need to understandMembers of the WMCA Board need and theirthe impact of proposed interventions to prioritiseability to deliver the vision in order assuranceinvestment decisions. The WMCA will be madeframework sets out how decisions and robustbased on a series of business cases cost/benefit analysis. A complementary filter will guide the prioritisation of public service reform proposals. The WMCA is committed to making strategicThe WMCA is committed to making supportingdecisions based on empirical evidence Its researchboth the problem and the solution. strategy details how this will be delivered. DELIVERING IMPACT DELIVERING objectiveA clear mechanism to enable the is crucialassessment of delivery of the strategy for the success of the WMCA. 34 35 SECTION 7 New ways of working ways New

Performance management framework Performance management of smartThe WMCA’s vision has a number performanceobjectives with clear targets and its success can bemanagement framework means monitored and measured robustly. selected toA selection of indicators has been a vision ledmeasure achievement, based on modellingapproach and underpinned by extensive economic modelwork carred out using the Oxford a range(Appendix X). These indicators cover fiscal andof areas including economic, social, areasenvironmental impacts. Metrics include and skills,such as productivity, employment andinfrastructure, competitiveness, sustainability health. These indicators will be the basis upon which the programme of interventions is appraised and prioritised as the SEP is delivered. This carefully targeted set of interventions will ensure successful delivery of the greatest economic benefits to the area and allow balance to be achieved in terms of opportunities created across the WMCA. Time and resources have been invested into the development of the leadership and management of the WMCA, ensuring this unique partnership of scale delivers sustainable change for the better across the West Midlands. The following diagram illustrates the spread of measures across the four areas of economic, social, environmental and fiscal impact.

The WMCA SEP board, which has been responsible for producing this SEP, is just one example of successful close joint working across private and public sectors. To support and accelerate delivery of the SEP’s outcomes a growth company is being created to work with the private sector across the area. Working collaboratively at pace has become a trademark of the combined authority, where the talent and capability in a number of organisations (including local authorities, the LEPs, the Integrated Transport Authority and universities) has been used flexibly and intelligently to ensure focus and a unique level of collaboration. It has already translated into specific actionsIt has already translated into specific and joint work on areas such as supply transport,chain development and financing, economicmarketing and promotion and financial experience,instruments (aligning EU funds). This knowledge and shared agenda provides a solid foundation for working across the combined authority. This shared agenda across LEPs has createdThis shared agenda across LEPs for WMCAa strong and confident foundation close jointdevelopment and has helped support businessworking between local authority and leaders. The chairs and officers of the Black Country,The chairs and officers of the Black and CoventryGreater Birmingham and Solihull as part ofand Warwickshire LEPs already meet LEP chairsa well-established West Midlands forum.

NEW WAYS OF WAYS NEW WORKING SECTION 7 36 New waysofworking PERFORMANCE MANAGEMENT FRAMEWORK

Fitness Education and Wellbeing and Skills Crime Equality

Social Impact

Em liers ployee

Infrastructure upp s

E o

m t

m c

u a

s n p o r i

t Air Pollution Performance m e

m i

e I

l s

c o

a t

Management t I s

m n u

e Jobs p C a Framework m c n t o ir v G rs n ove lde E rna eho nce Stak Transport Fiscal Impact

Waste

Business Productivity £ Budget Business Rates

37 SECTION 7

• Advisers •

Commission Commissions

• Councillors • Mental Health Commission Health Mental

Land Commission Land

Combined Authority Combined

Productivity and Skills and Productivity • Independent Commissioners Independent •

Working Group Working necessary Working Group Working

Fund or boards as boards or Working Group Working Criminal Justice Criminal Board

Investment working groups working Productivity Individuals and Individuals Remediation Working Group Working

Collective Other Troubled and Land and Mental Health Mental

New ways of working ways New Employability One Public Estate Public One Wellbeing and Wellbeing

• Employee Representatives Employee •

Skills and Skills Housing Health and Health

• Trade Union Representatives Union Trade •

• Voluntary Sector Representatives Sector Voluntary •

Committee Group Board

• Private and Public Sector Advisers Sector Public and Private •

Reform Reform Delivery Working Working Land and Programme

• Private and Public Sector Specialists Sector Public and Private •

Public Sector Public Sector Public

Transport Arts & Culture & Arts Housing HS2 Delivery HS2

• LEP Representatives LEP •

• Councillors •

Delivery

• Advisers •

Investment Board Investment

Policy Development and Development Policy

• Councillors •

• Investment Specialists Investment •

• independent Appointments (Audit) Appointments independent •

Audit Committee Audit Scrutiny Committee Scrutiny Assurance

• Councillors •

• Public Sector Partners Sector Public •

• LEP Representatives LEP • Strategic Economic Plan Board Plan Economic Strategic Public Service Reform Board Reform Service Public Strategic Development Strategic

• Councillors •

• Observers •

• LEP Chairs LEP •

West Midlands Combined Authority Board Authority Combined Midlands West Strategic Leadership Strategic

• • Councillors

Who?

GOVERNANCE FRAMEWORK GOVERNANCE GOVERNANCE FRAMEWORK GOVERNANCE SECTION 8 38 Priority actions goods exportedoriginatefromtheWestMidlands. Manufacturing sector-19%ofUKMachinery/Transport Over 60%ofallWestMidlandsexportsarefromthe International TradeContext • • • • Spatial dimension national andglobalmarkets. businesses intheWestMidlands advantage ofmanufacturing strengthen thecompetitive The primaryobjectiveisto • • • • The objectivesareto: clusters oflocalbusinesses. global companiesbeingsuppliedby value manufacturinginEurope,with the biggestconcentrationsofhigh West Midlandsashometooneof Action toexploitthepositionof at aCAlevel. significant economiesofscalefromsupportinginnovation transport anddigitalconnectivityiscrucial sites asanassetfortheCAareaawhole there isanurgentneedtoidentifyadditionalmajorstrategic important economicallyinallthreeLEPareas PLACE investment. secure furtherinward region and re-shoreactivitytothe strengthen supplychainlinks commercialisation enable innovationanits the OEMsinarea; retain andsupportthegrowthof demand tobenefit businessesandresidents. energy projectto generateandmanageenergy means itcanseekELENAfunding foralargescale energy costs.Thescaleofthecombined authority that manufacturingbusinesses face asaresultof Action toaddressthecompetitive disadvantage Energy • • This willbelinkedwithactionto: necessary tobringthemforwardfordevelopment. action onlandassemblyand/orremediationthatis pipeline ofsmallersitesacrossthearea,taking number ofmajorstrategicsites,maintaininga The WMCAwillensuretheavailabilityofasmall Sites andpremises areas. secure fullbroadbandcoverageinemployment congestion maintain connectivityadvantagesbytackling NEW MANUFACTURING ECONOMY: THEFACTS baseline: 2021 from Impact by GVA sector +8bn manufacturing the advanced productivity of Doubling Ambition - 26,000noquals. + 16,000NVQ4+ + 20KJOBS + £8bnGVA baseline: 2030 from Impact by + 18kjobs + £3bnGVA

DEVOLUTION DEAL 2016 BUSINESS PEOPLE • • • • high valuemanufacturingwithactionto: encourage andenableyoungpeopletopursuecareersin A Skills • • • • • • • • • • • • scale uppreviousandcurrentprogrammesincluding: the MASexperienceinWestMidlandsandbuildon The programmewillbedesignedinthelightoflessons among SMEstoenablethemjoinlocalsupplychains. (the nextstageofdigitisationthemanufacturingsector) Action willbetakentoincreaseawarenessofIndustry4.0 businesses totranslatenewideasinvolumemanufacture. businesses. Thiswillspecificallyfocusonactiontoenable infrastructure, creatingacadreof“innovationaware” more businessestotakeadvantageofR&Dandinnovation (which includesaspecificfocusonHVM),actiontoenable Following theMidlandEngineScienceandInnovationAudit Innovation ction to raise the skills of the existing workforce and ction toraisetheskillsofexistingworkforceand to enablemorebusinessesinnovate. address theleadershipandmanagementskillsrequired relation toNME and moreeffectivebusiness/schoolengagementin use thescaleofcombinedauthoritytosecuremore of bespoketraining initiative suchastheSkillsFactorytoensureprovision build onsuccessfulemployerownershippilotsand partnership initiatives HVM apprentices,supportingtheautomotiveindustry the MannGrouptoidentifyandsupportprospective work withemployerssuchasJLR,Westfieldand brownfield sitesbackintouse. the establishmentofalandremediation fundtobring science andinnovationaudit(nowsubmitted) support thedevelopmentofastrongproposalfor discussions onaccesstofinance resource andjointexportplanwithUKTI international tradeactivities,includedaring-fenced devolution andco-designofinwardinvestment devolve responsibilityforbusinesssupportfrom2017 through theGrowthHubs devolve responsibilityfortheBusinessGrowthService business supportecosystem support thedevelopmentofathree-LEPintegrated Systems. the ConsortiumforDemonstrationofIntelligent Programme GBSLEP’s DisruptiveandEmergingTechnologies Research Initiative a WMCAversionofInnovateUK’sSmallBusiness the BusinessInnovationProgramme Birmingham ScienceCity

39 SECTION 8 £ Priority actions Priority The establishment of a land remediation fund to bring brownfied sites back into use new aircraft The WMCA contains the number one LEP for jobs in new manufacturing economy A 27k V A A Double the Double the of productivity by the sector £8bn G jobs NVQ4+ no qualifications jobs 30 GVA made with components from the West Midlands Opportunity for 84k By 2021 +£3bn GV +18k By 20 +20k jobs +16k - 26k +£8bn GV 8bn 1 Baseline-

NEW MANUFACTURING ECONOMY: THE FIGURES ECONOMY: MANUFACTURING NEW Smithers Rapra - rubber and plastics expertise from product concept to launch (Telford) HORIBA MIRA - advanced engineering, research and product testing (Warwickshire) The Centre for Additive Layer ManufacturingLayer Additive for Centre The at the University of Wolverhampton a joint venture with aerospace and automotive businesses to remove weight and processes from the assembly or manufacture of product. The Caparo Innovation Centre at the University of Wolverhampton supports the exploitation of new products and ideas with inventors, start ups and SMEs Coventry University’s Institute of Advanced Manufacturing and Engineering is the UK’s first “faculty on the factory floor” University of Birmingham is a partners in two EPSRC Centres for Innovative Manufacturing – Liquid Metal Engineering and Food National Automotive Innovation Centre (from 2017) is a a joint venture between the University’s Warwick Manufacturing Group, Jaguar Land Rover and Tata Motors one of four Network Rail Strategic UniversityStrategic Rail Network four of one Partnerships (Birmingham Centre for Railway Research and Education) National Advanced Propulsion Centre Hub (Warwick) one of four Rolls Royce Universityone of four Rolls Royce Technology Centres (High Temperature Research; Birmingham) Transport Systems Catapult a partnerTransport Systems Catapult at Innovationin Serendip Incubator Birmingham Energy Systems – Based in Birmingham Energy Systems – Based High Value Manufacturing – HeadquartersHigh Value Manufacturing its seven componentin Solihull and two of Groupcentres (Warwick Manufacturing Centre) inand Manufacturing Technology Coventry and Warwickshire

------Mondelez (incorporating Cadbury) global R&D centre. Research and Technology Organisations (RTOs; providing business-to-business and government Research and Innovation services) based in WMCA include: versity/ Business partnerships include: University/ Business partnerships N+ational Catapult Centres with a strongCatapult Centres with N+ational presence in WMCA:

• • • • UNDERPINNING INNOVATION ASSETS INNOVATION UNDERPINNING The delivery of this strategic objective will require partner engagement with: BIS, UKTI, universities, Innovate UK, Science Park Association, WMCA Science City Board, Automotive Council, Advanced Manufacturing Supply Chain Initiative, Chambers of Commerce, EEF, FSB, education and training providers. SECTION 8 40 Priority actions dedicated resourcetostimulategrowth. A keygrowthsector.Newe-commerceadvisersintroducedas International TradeContext locations, includingstrategiccentresandsomeindustrialareas. There isapressingneedtoimprovebroadbandconnectivityinkey • • • nurturing thegrowthofthissector. Theyinclude: Clusters ofcreativeanddigitalbusinessesareveryimportantin Spatial dimension digtal andwirelesstechnologies. businesses areabletoexploitmobile, combined authorityareatoensurethat connectivity possibleacrossthe Action toensurethebestbroadband • • • the digitalandcreativesectorto: Action tobuildonthestrongpresenceof Wolverhampton CityCentre. Leamington Spa Innovation BirminghamCampus PEOPLE PLACE engineering andmanufacturing. and promotethevalueofcareersin techniques tosupportothersectors exploit transferableskillsand reform in othersectorsandpublicservice enable itscontributiontoinnovation enable itscontinuedgrowth • • The WMCAwill: building ontheexperienceofWarwickNet. authority tosecureinvestmentinareaswithpoorconnectivity, and willexplorethescopefordirectactionbycombined possible broadbandconnectivityacrosstheWestMidlands The combinedauthorityiscommittedtoensuringthebest Investment inbroadband secure businessinputtopublicservicereform. data –forbusiness,publicsectorandindividualclients development ofnewproductstoexploitandmakesensethe encourage otherstodoso.Thisisintendedenablethe open data,onforexample,publicservicedeliveryandwill The WMCAwillleadbyexampleinmakingavailable Open data digital andwireless technologies. increase awareness ofthebenefitstobusinesses ofmobile, and lifesciences the applicationofgamingtechniques toinnovationinmedical enable skills transfer to other sectors, including for example skills transfertoothersectors, includingforexample CREATIVE ANDDIGITAL: THEFACTS sector +£7bnGVA creative &digital productivity ofthe Ambition 3,000 noquals. - NVQ4+ + 18,000 + 29kjobs + £7bnGVA baseline: 2030 from Impact by + 18kjobs + £3bnGVA baseline: 2021 from Impact by - Tripling

the universities. Council England, BISandDCMS,InnovateUK and partner engagementwithcultural institutions,Arts The deliveryofthisstrategicobjective willrequire DEVOLUTION DEAL 2016 BUSINESS • • including: order tocontributethedeliveryofvision, benefits ofthecreativeanddigitalsectorin programme thatcapturesandexploitsthe The combinedauthoritywilldevelopa innovation dimension Exploiting theskillsand • • and councilscanmakeadifference,including: issues onwhichthecombinedauthority,LEPs and collaborationintervenesinrelationto catalyses growth,enablessharedlearning that spotsnewbusinessdevelopment, intelligence-led approachtobusinesssupport The combinedauthoritywilldevelopan Intelligent businesssupport and innovationAudit. priority themefortheMidlandEngineScience The creative,digitalanddesignsectorisa • • manufacturing of creativeindustriesasapathwayinto Transferable skills,includingtheattractions manufacturing the contributionofgamingtoinnovationin Transferable approaches–forexample enable collaborationandgrowth. enabling theprovisionofpremisesthat access tofinance Digital asadriverofpublicservicereform. University/ Businesspartnershipsinclude: ------management. technologies andinformation(data) human interactionwithinformation technologies fortheunderstandingof developing advancedcomputer Information andLanguageProcessing at theUniversityofWolverhamptonfor The worldleadingResearchInstitute European level with GoogleandMicrosoftona University ofWolverhamptonworking Technology ResearchCentreatthe Information SystemsandLearning businesses museums, galleriesandmanysmall University ofBirminghamworkswith The DigitalHeritageHubatthe new creativeanddigitalcluster awarded treasuryfundingtoestablisha STEAMHouse atBCUhasrecentlybeen

41 SECTION 8 A Priority Priority actions NVQ4+ 30 no qualifications Telephone Web Face to face £2.83 £8.62 15p By 20 +29k jobs +18k - 3k +£7bn GV

Triple the productivity of the sector Average cost of transactions A jobs higher revenues

By 2021 +£3bn GV +18k

jobs 72k

CREATIVE AND DIGITAL: THE FIGURES AND DIGITAL: CREATIVE A V

Cadbury G

Best broadband connectivity possible Businesses that use digital technology have Businesses that 22% Home to

Shakespeare, 4bn

and JLR, BBC 3 Baseline

SECTION 8 42 Priority actions WMCA EuropeanSocialInnovationFunding. A growingsectorandonewhichwillbenefitfromspecialistsupportfundedby International TradeContext • Spatial dimension Commission. This willbuildontheworkofGBSLEP’sGreen • • The combinedauthoritywill: improvement environment,healthandwellbeing. productivity acrosstheareaandleadstoan technology businessesinawaywhichincreases Action toenablethegrowthofenvironmental circumstances. area andprovidesforlocalinitiativesprojectsthatreflectneeds scale ofthecombinedauthority,developsacommonframeworkacross The successofthisstrategicprioritywillhingeonactionwhichexploitsthe PLACE sector. development andadoptionofinnovationinthis business andthepublicsectortoenable facilitate collaborationbetweenuniversities, minimisation andsustainabletransport technologies, sustainableenergyuse,waste the developmentanduseofenvironmental adopt apolicyframeworkwhichincentivises land fill. to growandreducetheamount ofwastegoingto waste beingre-usedinorder to bothenableimportantlocalbusinesses uses materialstoacceleratethe amountofcommercialandindustrial A programmedevelopedwithmajorbusinesses intheareawhichre- Re-use ofmaterials confidence toinvestinprojectsof thistype. planning, toensuretheavailabilityofaskilledworkforceand provide This willinformactiontodevelopamoreeffectiveprocessforfeasibility learn fromcurrentinitiatives. a collaborativedrivebyuniversities,businessandthepublic sectorto local powermanagementandsmartgridsacrossthearea, starting with A programmetoscaleupactiononheatnetworks,energygeneration, District heatingandenergyschemes • • • up oflowcarbontechnologiesincluding: A comprehensiveprogrammeofactivitytoenablethedevelopmentandtake- fuel poverty. support onfinancialmanagementthiswillalsocontributetotackling housing whichisaffordable,profitableandlessvolatile.Combinedwith to developanapproachimprovingtheenergyefficiencyofexisting Action, usingthescaleofcombinedauthority,toworkwithbusiness Reforming “retrofit” across the3SCarea. enabling improvedprovisionandmanagementofchargingpoints planning fortheuseofhydrogencelltechnology balancing shorttermactioninrelationtoelectricvehicleswithlong term carbon vehicles building ontheregion’sstrengthsindesignandmanufactureoflow ENVIRONMENTAL TECHNOLOGIES:THEFACTS

dioxide across the WMCA dioxide acrosstheWMCA economy -40%lesscarbon Ambition -Lowcarbon - 1,000noquals. + 1,000NVQ4+ + 1kjobs + £2bnGVA baseline: 2030 from Impact by + 1kjobs + £1bnGVA baseline: 2021 from Impact by

West Midlands. for Decentralised EnergyandSustainability Regulators, NationalGrid,theAssociation require engagementwith:BIS,DECC, Utility The deliveryofthisstrategicpriority will INNOVATION ASSETS DEVOLUTION BUSINESS PEOPLE • • strategy forthissectorto: led sectorskills The WMCAwilldevelopanemployer- Systems. for DemonstrationofIntelligent challenge areafortheConsortium and airquality–isaninitialkey Energy –energysecurityandpolicy Innovation Audit. the MidlandsEngineScienceand is oneoftheprioritythemes Energy andlowcarbontechnologies Innovation

• DEAL 2016 Factory. the BlackCountrySkills building onthelessonsfrom of bespokeprovisionforthissector, enable thedesignandcommission Strategy Employment andSkills feed intotheWestMidlands partnerships include: University/business ------• • • Research Institute(Aston) The EuropeanBioenergy Treasury recently announcedby Research Accelerator six partnersintheEnergy Warwick arethreeofthe Aston, Birminghamand Sensors andMetrology Quantum Technologyfor leads theUKHubfor Birmingham University Innovation Audit. for aScienceand develop astrongproposal finance requirements authority’s accessto discuss thecombined onwards support from2017 approach tobusiness develop adevolved

43 SECTION 8 A Priority actions Priority 30 NVQ4+ no qualifications 1k 40% By 20 +1k - +1k jobs +£2bn GV less C02

A jobs 1bn GV £ By 2021 + +1k

jobs More electric vehicle technology 23k

A V

ENVIRONMENTAL TECHNOLOGIES: THE FIGURES TECHNOLOGIES: ENVIRONMENTAL

Re-use more materials

Technologies Environmental

2.6bn Baseline

SECTION 8 44 Priority actions area’s potential as an accelerated access test bed. area’s potentialasanacceleratedaccesstestbed. size anddiversityofthearea’spopulationenhances in themedicalandlifesciencessectorBirmingham.The There isaparticularlysignificantclusterofbusinesses Spatial dimension PEOPLE PLACE cluster acrosstheMidlandsEngine. with thewidermedicaltechnologies This wouldalsoinvolvecollaboration Medicine. the newInstituteofTranslational local centresofexcellenceand Commission andtheexistenceof GB&SLEP’s LifeScience’s This buildsontheworkof part ofthesector’ssupplychain. businesses todiversifyandbecome more widely,andtoenableother sciences sectorinBirminghamand growth ofthemedicalandlife authority toenablethefurther Using thescaleofcombined and diversityofthepopulationWestMidlands. strengths, thekeyinstitutionsinareaandsize and devices.Thiswillexploitthecurrentsector development andassessmentofdrugs,diagnostics West MidlandsasEuropeancentrefortherapid The WMCAwillpromoteBirminghamandthe access testbed An internationallysignificantaccelerated • • • including: programme ofactivityonhealthandwellbeing, This sectorfocusedactivityisoneelementofawider transformation plans. the workonhealthservice sustainabilityand and councils’healthwellbeing boardsin the involvementofshadow combinedauthority improve thehealthandwellbeingoflocalpeople and visitoreconomyoffertosupportaction enabling thegrowthofregion’sleisure,cultural participation on publicservicesandincreasingeconomic health andwellbeing,reducingthedemand which willrecommendactiontoimprovemental the workofWMCA’sMentalHealthCommission MEDICAL, HEALTH ANDLIFESCIENCES:THEFACTS 2021 from 2021 from Impact by - 17,000noquals. + 29,000NVQ4+ + 75kjobs + £6bnGVA baseline: 2030 from Impact by + 35kjobs + £2bnGVA baseline:

Network, universitiesandlocalhealthtrusts. DH, NHSE,theWestMidlandsAcademicHealthScience Delivering thisprioritywouldrequireengagementwith DEVOLUTION DEAL 2016 • devolution agreement: following governmentcommitmentsinthe This prioritywilltakeadvantageofthe Commission. outcome oftheMentalHealth a commitmenttodiscussingthe 45 SECTION 8 A A Priority actions Priority A V jobs NVQ4+ jobs 30 no qualifications G By 2021 +£2bn GV +35k By 20 +29k +75k jobs +£6bn GV 6bn Baseline-

250k - 17k

Action to improve mental health

THE FIGURES LIFE SCIENCES: AND HEALTH MEDICAL,

and beyond Birmingham Birmingham and life sciences in and life Enable growth of medical growth of medical Enable sector healthcare science and of the life productivity Double SECTION 8 46 Priority actions will enablelocalpartnerstodelivertheplan. made sofarandincludesnewmechanismsthat The devolutionagreementwelcomestheprogress investment inR&Dandinnovation. will beusedtodemonstrateSMEsthevalueof Supply chainopportunitiespresentedbyHS2 developing theplan. closely withthegovernmentandHS2Ltdin to delivertheHS2GrowthStrategy.Itwillwork implementation plansettingouthowitintends The combinedauthoritywilldevelopan • • • • • the Midlandsandsecure: Europe inordertodriveeconomicgrowthacross benefits ofthelargestinfrastructureprojectin The WMCA’svisionistofullymaximisethe

PEOPLE PLACE people connectedtoHS2. improved accessibility,withover2million support for2000businesses apprenticeships population qualifiedtolevel4+and2000 an increaseinskills,with36%ofthelocal an additional£14bnGVA will befilledbyresidentscurrentlyunemployed 104,000 neworsafeguardedjobs,10%ofwhich approach toup-skillingunemployed peopletoaccessHS2jobs. Drawing onlessonsfromNew StreetStation,amulti-agency Re-tune: Employability primary. A “HS2Ready”careersinspirationprogrammedeliveredfrom Ignite: Schools a beaconforrailindustryskills. exploiting thedeliveryofNationalCollegeforHighSpeed Railas delivering workforcedevelopment,boostingapprenticeships and workforce tobeHS2readybyamalgamatingdemandforskills, Activity toenableprospectiveHS2contractorsdeveloptheir Accelerate: skillsforthesupplychain HS2. Priorities includeensuringthattransportnetworksarereadyfor Midlands Connectwilldevelopatransportvisionandstrategy. residents andbusinesses. impletmented tofacilitateaccesstheHS2hubsforworkers, A programmeofinvestmentinconnectivityimprovementswillbe Strategy ImplementationPlan. business districts,maximisingimpactthroughtheHS2Growth a fullyintegratedHS2networklinkingnewassetswithexisting of theregion,deliveringtwodevelopmentzones.Thevisionisfor HS2’s twolandmarkstationswillbefullyintegratedintothefabric HS2 GROWTH: THEFACTS - 16,000noquals. + 4,000NVQ4+ + 25kjobs + £6bnGVA baseline: 2030 from Impact by

DWPand BIS. Network RailandOperators,DfT, require engagementwith:HS2Limited; The deliveryofthisstrategicobjectivewill DEVOLUTION BUSINESS DEAL 2016 of IntelligentSystems. of theConsortiumforDemonstration Mobility isaninitialkeychallengearea investment inR&Dandinnovation. demonstrate toSMEsthevalueof Opportunities providedbyHS2will Innovation and internationalconnectivity. inform theapproachtolocal,national from theProductivityCommissionwill The adviceandrecommendations area. European/international HQsinthe encourage businessestolocatetheir the benefitstoHS2‘region’and An outreachprogrammewillexplain capacity development building informationmodelling;and diagnostics; marketdevelopment; will addressfourkeyareas:business chains acrosstheregionarereadywe supply chain.Toensurethe be usedtocreateahubfortheHSrail stock depotatWashwoodHeathwill The decisiontolocatetheHS2rolling Strategy ImplementationPlan government theHS2Growth Draw upandagreewith 47 SECTION 8 A Priority actions Priority no qualifications 30 NVQ4+ 2000 apprenticeships By 20 +25k jobs +4k - 16k V +£6bn G

A jobs

Double the By 2021 V +£2bn G +19k

technologies jobs growth of the

businesses 2000 HS2 GROWTH: THE FIGURES GROWTH: HS2 153k

A logistics and transport V

Support for

7bn Baseline- Baseline-

SECTION 8 48 Priority actions • • • Spatial dimension area area Commission willinformfutureworkinthis The WMCA’sProductivityandSkills • • • • • • Action toensurethat: provision; businessclusters. with highlevelsofworklessness,specialisteducationandtraining spatial focusinskillsinvestmentzonesreflectingcommunities LEP/local authorityandcommunitylevels action requiredatacombinedauthority/threeLEP,individual important economicallyinallthreeLEPareas PEOPLE PLACE demand. whose skillsdon’tmatchlabourmarket re-tune: targetingpeopleoutofworkand accelerate: targetingthoseinwork training ignite: targetingthoseineducationand there arethreestrandsofactivity from economicgrowth everybody hastheopportunitytobefit businesses intransformationalsectors; with aparticularfocusontheneedsof the skillsneedsofbusinessesaremet, SKILLS FORGROWTH ANDEMPLOYMENT FORALL:THEFACTS whose skillsdon’tmatchdemand. to raiseskillsandworkwithunemployedpeoplethose Identification ofSkillsInvestmentZonesfortargetedactivity work experience, mentoringandteacherplacements. for youngpeople”oncareersadvice andguidance,including Using scaleofthecombinedauthority todelivera“charter Business andschools • informed by: Approach totheco-designofprogrammewillbe Co-design employmentsupport • • This workwillpulltogether: agreements withprovidersin2016-17. budget, withaninitialfocusonthedevelopmentofoutcome to enablethesuccessfulmanagementofdevolved Priority fortheanalysisandpolicydevelopmentnecessary Managing thedevolved19+adultskillsbudget Health Commission. Health Commission. from workonpublicservicereform, includingtheMental under wayacrossthecombined authorityarea;findings a reviewofthelearningfromlocalinitiativescurrently patterns. analysis ofthelearnerpopulation,includingtraveltolearn quality andscopeforcentresofexcellence;adetailed analysis oftheproviderlandscape–strengths,capacity, the impactofpost-16areareviews or above NVQ4+ level educated to people 156k more additional + An qualifications with no fewer people + 153k baseline: 2030 from Impact by

providers, includingschools. regional SchoolsCommissionerandeducation partner engagementwithBIS,DWPandSFA,the The deliveryofthisstrategicobjectivewillrequire DEVOLUTION DEAL 2016 BUSINESS • • • • These strategieswill: transformational andthreeenablingsectors. employer-led sectorskillsstrategiesforseven Engaging withbusinessestodevelop Sector skillsstrategies diagram onpage55. the coreofwhichisillustratedin Midlands EmploymentandSkillsStrategy through thedevelopmentofaWest preparing totakeontheseresponsibilities Work onthisprioritywillinitiallyfocus • • employment, inparticular: to deliveringthevisionforskillsand The devolutionagreementiscrucial provision tomeetthoseneeds. greater adoptionofinnovationandenable identification oftheskillsneededtosupport take-up ofapprenticeships. inform actiontoenabletheprovisionand programme Futures ManagementandLeadership Country SkillsFactoryandtheUKCES building oninitiativessuchastheBlack bespoke provisionforspecificsectors enabling thedesignandcommissionof devolved 19+adultskillsbudget and Skillsstrategyunderpinuseofthe inform thecontentsofEmployment employment support. a commitmenttoco-designingfuture from 2018-19andtwoincrementalsteps: adult skillsbudget,withfulldevolution the phasedapproachtodevolving19+ - - - - providers in2017-18; Scope tovaryblockallocations providers in2016-17; Developing outcomeagreementswith

49 SECTION 8 Priority actions Priority 33.3% 46.7% 46.1% 42.7% % of state funded secondary schools above the national average of 58.1% 293 27 colleges science parks 11 universities Total number of state funded mainstream secondary schools 81 60 152 293 9 Assets mainstream secondary schools a 54 32 82 168 Number of state funded mainstream secondary schools performing below national average v ( 58.1% ) 53k 56k fewer people with no fewer people and qualifications 1 1 more people educated to NVQ4+

a v 27 28 70 125

Number of state funded mainstream secondary schools performing above national average ( 58.1% )

local authorities in the WMCA already have an unemployment claimant of 1% or less

SKILLS FOR GROWTH AND EMPLOYMENT FOR ALL: THE FIGURES FOR ALL: EMPLOYMENT AND FOR GROWTH SKILLS 7 BCLEP CWLEP GBSLEP WMCA = All state funded mainstream schools achieving 5+A* - C inc English and Maths a SECTION 8 50 Priority actions settlements. form, housingdensities,connectivity, energyandutilityprovisionthenatureof to explorestepsneededaccommodatethislevelofgrowth,includingurban the EconomyPlusscenarioareenormous.TheWMCAwillcommissionastudy The spatialimplicationsofdeliveringthelevelhousebuildingnecessarytosupport Spatial dimension • • sector. Thispriorityisintendedto: current shapeandbusinessmodelofthehouse-building difficult todevelopbecauseoftheirsize,conditionandthe of housingneedcollectivelyandindividually.Manysitesare authorities faceamajorchallengeinmeetingcurrentlevels housing marketareasintheWestMidlands.Planning development plansorbeingdeliveredacrossthetwostrategic significantly greaterthancurrentlyprovidedforin The EconomyPlusscenariocallsforalevelofhousebuilding

PLACE the EconomyPlusscenario. level andmixofhousingtosupportthegrowthassumedin create theconditionsinwhichitispossibletoprovide currently allocatedforhousing remove thebarrierstodevelopmentofsitesthatare • • • • • • area, including: develop abusinessmodelwhichenhancestheviabilityofhousebuilding inthe potential tosecurefurtherpowersworkwiththehousebuilding industryto The combinedauthoritywillexplorewaysinwhichitcanexploit itsscaleand A newapproachtohousebuilding Development Orders,placemakingandtheprinciplesofSMARTcities. authorities toenablesustainablegrowth,includingmoreextensiveuseofLocal Action todevelopandsharegoodpracticebuildontheactiontakenbyplanning Positive planning • • The combinedauthorityinfrastructurestrategywillgivepriorityto: assembly andremediationwork. A programmeofactivitytobringforwardsitesfordevelopment,includingland Immediate actiontoacceleratehousebuilding productivity and skillscommission. Identifying thehousebuildingindustry asanearlypriorityfortheWMCA’s benefits ofthatinvestment increases theviabilityofdevelopment inreturnforasharethefinancial exploring amechanismtoinvest upfrontinsocialinfrastructureawaythat construction sector establishing adevelopmentarmtoinfluencetheshapeof local supporting thedevelopmentoflowcarbonandzero homes sites willbemoreviable supporting localsmallandmedium-sizedhousebuildersfor whomsmaller direct investment supporting thecapacitylocallyforoff-siteconstruction,including potentially enhancing theexistingstock,includingenergyefficiency. to supportarangeofneedsandmarketopportunities;maintaining a programmetobringforwardclustersandsmallmediumsizedsites locations enabling thedevelopmentofmajorhousingsitesinmostsustainable HOUSING: THE FACTS - 6,000noquals. + 9,000NVQ4+ + 47kjobs + £4bnGVA baseline: 2030 from Impact by + 23kjobs + £2bnGVA baseline: 2021 from Impact by

universities. BIS andDCMS,InnovateUK institutions, ArtsCouncilEngland, engagement withcultural objective willrequirepartner The deliveryofthisstrategic DEVOLUTION DEAL 2016 BUSINESS PEOPLE of housebuilding. to deliveranincreasedrate sector toensurecapapcity Work withtheconstruction productivity. will contributetoimproved Increased housingprovision increased housebuilding. workforce todeliver the availabilityofaskilled Centre atDudleytoensure the ConstructionTraining Construction Campusand such astheWolverhampton Further developingfacilities • • • • devolution agreement: commitments inthe following government advantage ofthe This prioritywilltake on: to continuediscussions remediation fund; the creationofaland Land Commission; to supporttheWMCA housing; strategic approachto to developajoint the combinedauthority the HCAtoworkwith - - - - investment fund. creation ofahousing loan funds; devolution ofhousing 51 SECTION 8 A £ Priority actions Priority Increased rate of house building 30 NVQ4+ no qualifications By 20 +47k jobs +9k +£4bn GV - 6k

Double the growth of building technologies A housing investment £500m THE FIGURES jobs By 2021 +£2bn GV +23k jobs

HOUSING: HOUSING: Support development of low carbon and zero carbon homes 119k

V G

training centres Develop construction

4.5bn Baseline-

SECTION 8 52 Priority actions • • including: geography ofthethreeLEPs to exploittheeconomic A programmeofactivity live, workandvisit. Midlands afirstclassplaceto geography: makingtheWest Exploiting theeconomic

PEOPLE PLACE and widerplaceoffer. West Midlands’economy economic hinterlandtothe the contributionof place offer services andthewider the locationofbusiness Midlands asgateways, economy oftheWest of thethreecitiesto the potentialcontribution assets intoonepublicestate. a criticalmassforrationalisation ofpublicsector Using thecitycentresandother townstoprovide sites. provision ofasmallnumberlargestrategic brownfield sitesbackintouseandensuringthe investment, withaparticularfocusonbringing needs ofexpandingbusinessesandinward Action toensurethesupplyoflandmeet • • Transport propositionswhich: • • strategic centres,including: contributions ofthethreecitycentresandother A programmeofactivitytoexploitthedistinctive EXPLOITING THEECONOMICGEOGRAPHY: THEFACTS between CoventryandUKCentral. gateways totheWestMidlands,includinglinks Central; reinforcetheroleofthreecitiesas maximise theeconomicpotentialofUK conurbation the widerhinterlandandcoreof support thekeyeconomiclinksbetween local centres. centres; supportingtherolesofothermore development opportunitiesinthethreecity in Wolverhampton;supportingmajor the citycentreuniversityandcollegepresence Wolverhampton andDudley; the culturalofferinBirmingham, - 72,000noquals. + 78,000NVQ4+ + 306kjobs + £41bnGVA baseline: 2030 from Impact by + 160kjobs + 17bnGVA baseline: 2021 from Impact by

DEVOLUTION DEAL 2016 BUSINESS • • • • • • • Exploiting the: net economiccontributors. wider conurbationandenableotherareastobecome drivers ofgrowthinthemoredynamicparts Wolverhampton. Aprogrammetosupportexisting London andthepotentialcontributionofCoventry UK’s leadingcentreforfinancialservicesoutside locally, buildingonBirmingham’spositionasthe businesses sourcetheirfinanceandbusinessservices A programmetoensurethatWestMidlands’ Support forthecreationofalandremediationfund. the managementofcurrentandnewrailstations. combined authoritytobringforwardproposalsfor Implementation Plan.Anopportunityforthe the developmentofHS2GrowthStrategy transport budget.Governmentcontributionto The Mayortoreceiveadevolvedandconsolidated integration pilotsintheotherareas. Programme) andaseriesofneighbourhood to Birmingham’sroleintheOnePublicEstate in WolverhamptonandCoventry(inaddition Government supportfornewpublicsectorhubs resource andjointplanwithUKTI international tradeactivities,includingaring-fenced collaboration/co-design ofinwardinvestmentand Government commitmenttodevolutionandgreater approach tobusinesssupportfrom2017onwards. Government supporttodevelopadevolved work andinvest. belt totheWestMidlandsasaplaceinwhichlive, Central; distinctivecontributionoftheenterprise opportunities presentedbythedevelopmentofUK for inwardinvestment; of thethreecitycentresinpromotionarea business services,retail,leisureandculturaloffer 53 SECTION 8 A A A Priority actions Priority V jobs G NVQ4+ no qualifications jobs 30 By 2021 +£17bn GV +160k By 20 +306k jobs +78k - 72k +£41bn GV 45bn 1.1m Baseline- Baseline-

Leaders in export New public sector hubs Double the productivity of services

THE FIGURES GEOGRAPHY: ECONOMIC THE EXPLOITING

as gateways The three cities The three SECTION 8 54 Priority actions SKILLSSKILLS DEVOLUTION DEVOLUTION DEAL DEAL

Government devolves Guiding Principles Skills Investment Zone influence over funding one strategic Based on opportunity not need framework - Overarching policy for employment and skills one common set of Identify and quantify Skills Investment plan - Aggregates demand for skills KP1s and reporting opportunities within a identifies programmes - Skills investment plan (power structure geographical area (e.g. / projects requiring Combined Enterprise Zone) or sector to shape and structure funds to one clear, simple investment to correct (e.g. Advanced Manufacturing Authority/ meet local needs and regional governance structure supply and demand 3 LEP Level opportunities and Engineering) for skills - Skills Investment Zones We no longer have the - Leverage employer investment resources to work any Local authority level other way! - Business support strategy identifies the mix Direct connection between Devolve influence of services required to business support and according to Skills enable local supply side to employment and skills Investment Plan meet demand within the opportunities Skills Investment Zone - Local strategy to ensure supply side meets demand Local - Ignores LA boundaries and focuses on travel to work and Authority/ Key Components Deal LEP travel to learn areas at all levels - Integration with local public services Targeting those in Invest to save through reduction in future education / training NEETS and youth unemployment and Devolve influence IGNITE development of higher level skills where necessary to local initiatives Targeting those in work Skills profile in line with England average - Local delivery projects ACCELERATE that can progress, = increase in GVA of 2.7% (£2,163m) + an - 1-1 support and person supporting increase in increase of £865m p.a in tax revenue centred approach productivity Community/ - Family / community support Individual - Jobcentre Plus Targeting unemployed and Unemployment rate in line with England - Colleges RE-TUNE those whose skills don’t average = £62.8m p.a saving in benefit match demand spend + an increase of £49.3m in tax - Schools revenue

55 SECTION 8

SUPPLY

Investment in people’s needs people’s in Investment

Out of work / underemployed / work of Out RE-TUNE:

Offer

In work In ACCELERATE:

Mainstream

In education In IGNITE: IGNITE:

Priority actions Priority UNDERPINNING ECONOMIC INTELLIGENCE

PTIZ GTIZ

Investment Zone Investment Zone

I P A

Geographical Talent Talent Geographical L

Investment Investment I E

T I

Priority Talent Talent Priority

Person O

OFFER

Centred Approach Centred

ENHANCED

GSIZ SSIZ L

Business

X I

T I

I E Zones Zone

S A P I E C

Investment Investment Skills Investment Investment Skills

Sector Skills Skills Sector Geographical

Get talent now (recruitment support) (recruitment now talent Get RE-TUNE: RE-TUNE:

Offer

Growing your talent (workforce development) (workforce talent your Growing ACCELERATE:

Mainstream

Investing in future talent future in Investing IGNITE:

Investment in business’ needs business’ in Investment

DEMAND EMPLOYMENT AND SKILLS MARKET SHAPING MARKET SKILLS AND EMPLOYMENT 56

Technical appendices are available on the WMCA website: www.westmidlandscombinedauthority.org.uk

1. Vision Setting – detailed economic analysis 5. Skills –This report contains RAG rated tables of future scenarios using Oxford Economic relating to the following aspects of skills model baseline and economic impact and employment across the West Midlands model. “An Economic Forecasting Model Combined Authority included qualification for the West Midlands Combined Authority” levels, NEETs and school performance to produced in November 2015 by the Black provide a spatial perspective. Country Economic Intelligence Unit. 6. WMCA Performance Management 2. Fiscal Impact – a detailed methodology Framework – provides a clear framework to understand public finances and outline against which success can be measured. the gap between total public expenditure The PMF is composed of a selection of and total tax receipts. “West Midlands strategic headline indicators, which measure Combined Authority Approach to Income the impact of the various programmes areas and Expenditure”, October 2015, produced of the WMSEP. The indicators in the PMF by Black Country Economic Intelligence Unit. will be the basis upon which we appraise and prioritise our programme of interventions to Sectors 3. – The document includes a sectoral deliver the WMCA SEP. and occupational analysis of the Oxford Economic Model and provides a graphical 7. Dynamic Economic Impact Model (DEIM) – representation of GVA and jobs forecasts This document includes a explanation of under the various scenarios for the seven the WMCA DEIM which builds on the latest transformational sectors and three enabling methodological advancements in regional sectors which have been identified. It also economic impact modelling capturing hard shows the alignment of the sectors to the 8 and soft infrastructure interventions. strategic priorities. 4. List of the top 200 strategic companies in the WMCA, ranked by turnover. The West Midlands Combined Authority’s Strategic Economic Plan has been developed and is supported by a wide range of organisations across the region who have all made valuable contributions to its vision, strategy and objectives. These organisations – and more across the region - will continue to be actively involved in the further development and delivery of this SEP and will play a key role in making the West Midlands the best region in the UK to do business.