West Midlands 'economic powerhouse' plan unveiled
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Version 0 of 1. Plans to create a West Midlands “economic powerhouse” to compete with the might of London – not to mention the growing strength of cities in the north – have been unveiled by the leaders of seven local authorities. The councils announced on Monday they were aiming to form a body called the “West Midlands Combined Authority” and work together to attract investment, increase productivity and create jobs. Leaders of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton were keen to emphasise they were not creating a super-council. Each individual authority would retain control of services in its area but the idea is that a combined body would have more clout when it came to bidding for business, government funds and devolved power. Initial priorities would include creating a programme to improve skills and a long-term transport plan. It is also proposing to launch three independent commissions to look at productivity, to make sure land is available for business and homes and to examine mental health and public services. Ann Lucas, the leader of Coventry council, said: “Across the region we face some critical challenges; skills, transport infrastructure, productivity, land use and public service reform. By working together we can move powers from Whitehall to the West Midlands and start building a Midlands engine in the heart of the country. “Since the general election in May there has been unprecedented collaboration between political colleagues in the West Midlands … to establish this new partnership. Our aim is to consult and work with more partners across the private, public and third sector so that we can establish our combined authority.” On the front page of a new website, the seven authorities say the industrial West Midlands used to be the “workshop of the world”. It goes on: “Now the challenge is to become the engine of the British economy, driving jobs, prosperity and economic growth.” The website argues that the UK is dominated by London and the south-east: “The problem is not that London is too big but that the northern and Midlands cities have not grown strongly enough. They are too small.” It argues that to attract both national and international business, “size will matter more than ever before”, adding: “Larger cities attract skilled individuals, capital for investment, and economies of scale … We have to begin to consider and promote the region as one market area governed in a more joined-up fashion than is currently the case.” The idea of the combined authority has been controversial in some parts of the West Midlands, with some residents fearful that the intention is to create a Greater Birmingham. The council leaders are keen to stress that this will not be the case. Bob Sleigh, the leader of Solihull council, said: “The establishment of a combined authority gives us a unique opportunity to drive forward a series of objectives in support of economic growth and progressive public service reform. “We recognise there is a £16bn output gap between the West Midlands and the national average. We generate around £4,000 per person less in wealth than the national average and clearly eliminating that gap is one of our key priorities moving forward. Last year the chancellor spoke about the need to rebalance the UK economy and now, collectively, we are responding in our own terms, through the creation of the West Midlands combined authority.” Sir Albert Bore, the leader of Birmingham city council, said: “We are neither building a super council, nor are we adding an extra layer of government or politicians. Instead, what we are doing is working together collaboratively to draw down powers from central government to our region so that we can make the best decisions in the region for the region, with the express purpose of benefitting our residents and businesses.” The government welcomed the move. The business secretary, Sajid Javid, said: “This is a great opportunity to help increase security and opportunity for working people across the West Midlands, and I look forward to supporting local communities and businesses to help achieve this.” All councils involved will carry out consultation with their residents, local businesses and key organisations on how a combined authority could work. The aim is for the authority to launch next April. |