West Midlands Plan for Growth

Modelling by Oxford Economics indicates that, without further intervention, the West Midlands will experience below-average growth over the next decade, with a negative impact on employment and earnings in key parts of the region. Total Gross Value Added (GVA) in 2019 for the WMCA was £104 billion and projected to have a GVA of £131 billion in 2040. This is an increase of 25.5% with a yearly growth rate of 1.16% - below the projected UK annual yearly growth rate of 1.35%. The baseline scenario forecasts the WMCA GVA per head to grow to £29,939 by 2040, an average annual yearly growth rate of 0.95%, compared to the UK average of 1.15%.

Working with regional partners, the WMCA commissioned a detailed analysis of opportunities for differential growth above that forecast. Its purpose was to provide an independent assessment of where the West Midlands has comparative advantage, market confidence and a credible path for growth and job creation above forecasted levels. Based upon this, the West Midlands Plan for Growth sets

a two-part strategic approach to accelerate and amplify growth to become the fastest growing region outside of London to 2030; a goal which requires an additional £3.9bn of output above baseline forecasts by 2030:

• Overcome barriers to growth in primary clusters where there is opportunity for differential growth in the short to medium term.

• Identifying and supporting a portfolio of nascent clusters now, to deliver growth in the longer term.