Essential insights for March 2025

UK Government Accelerates Nuclear Power Expansion

The UK government has announced plans to approve more nuclear power plants across England and Wales, as part of Prime Minister Keir Starmer's Plan for Change. The reforms will allow for the construction of small modular reactors for the first time, creating thousands of skilled jobs and delivering clean, affordable energy. The changes aim to streamline planning rules, remove outdated restrictions, and establish a Nuclear Regulatory Taskforce to incentivise investment and expedite project approvals.

Public sector must embrace AI for productivity transformation

Artificial Intelligence is revolutionising the UK public sector, with applications ranging from social work to military planning. According to REFORM, AI adoption remains inconsistent due to cultural barriers despite potential productivity benefits worth £200bn over five years. Government departments lack incentives for AI-enabled delivery models and face bureaucratic hurdles. To harness AI's full potential, a cultural shift is needed, led by cross-functional teams and innovative leadership. The AI Opportunities Action Plan highlights the need for mindset, skills, streamlined processes, and improved data systems.

Boosting compute capacity for UK AI

A new report by the Social Market Foundation highlights the importance of data centres for the UK's AI ambitions, emphasising the need to address energy constraints, planning delays, and global competition. AI could boost GDP by 7% globally over a decade and enhance worker efficiency by up to 40%. Recommendations include supporting small modular reactors, expanding AI infrastructure investment, and streamlining planning regulations. These measures aim to maintain the UK's status as a global AI leader and ensure long-term economic resilience.

The false AI energy crisis?

Donald Trump and AI executives have raised concerns about an AI-driven energy shortage, but experts argue it's a convenient excuse for fossil fuel expansion. Despite claims of a looming crisis, data shows no explosive electricity demand at the national level. AI's energy needs are uncertain, and renewable sources can meet much of the demand. The push for fossil fuels appears politically and profit-driven, with tech firms and energy companies benefiting from the narrative. Environmental impacts of fossil-fuel extraction remain a significant concern.

Call for responses to UK Government consultation on steel strategy for long-term growth

The UK Government has announced a comprehensive steel strategy to support the sector's long-term growth and competitiveness. The plan includes up to £2.5bn in funding through the National Wealth Fund and other routes, alongside a £500mn investment in an electric arc furnace at Tata Steel UK's Port Talbot site. The strategy, which does not reference the West Midlands, aims to attract private investment, enhance steelmaking capabilities, and align with broader priorities such as trade strategy, strategic defence review, and Invest 2035. Submissions are sought to a national consultation before 30 March. 

Reforming fiscal forecasting: A call for flexible multipliers

The UK’s rigid fiscal forecasting undervalues public investment by applying narrow fiscal multipliers, limiting perceived economic benefits. A report by the New Economics Foundation critiques the Office for Budget Responsibility’s conservative approach, which projects minimal GDP growth from public spending. It proposes a flexible “bucket approach” to better capture the diverse impacts of government investment, particularly in green infrastructure and social equity. This model could expand fiscal space, support long-term growth, and align economic policy with broader societal goals.

Government urged to adopt zoning system for sustained growth

A briefing by the Centre for Cities suggests that replacing England’s discretionary planning system with a flexible zoning system could support the government's growth mission. By introducing national development policies and reducing local discretion, planning reforms could spur higher housebuilding and economic growth. A zoning approach would streamline regulations, while devolution must also be restructured to empower local economies. This reform aims for sustainable productivity increases, revitalising cities and boosting national economic potential.

Growing small pension pots pose challenges

A report by the Institute for Fiscal Studies (IFS) highlights the rapid growth of deferred small pension pots in the UK, with around 20mn pots under £10,000 in 2023, totalling nearly £30bn. These small pots are costly to manage, leading to higher fees and financial inefficiencies. Experts recommend automatic consolidation of small pots to simplify management and improve returns. Proposals include a “pot follows member” system or a government-approved consolidator, aiming to enhance retirement savings and reduce administrative burdens.

Call for regional coordination in boosting UK productivity

The UK faces significant regional productivity challenges that require a coordinated, place-based approach. A recent report by The Productivity Institute emphasises the need for integrated pro-productivity policies, better regional decision-making, and stronger leadership across departments. While there are efforts to address investment and technology diffusion, a lack of coordination between national and local governments remains a barrier. The report urges a focus on tailored regional initiatives and stronger devolution to scale up productivity growth across the country. See the Midlands Insight Report (from headlines) for Midlands regional analysis and recommendations.

UK Special Economic Zones (SEZ) policy

A guide developed by the Centre for Local Economic Strategies (CLES) offers insights into Special Economic Zones (SEZ), including freeports, greenports, and investment zones, which provide tax breaks and incentives to stimulate economic activity. The guide explores their operations, their relationship with public-private investment, and case studies. It also examines SEZ policies under the Labour government and the potential direction for future development. SEZs aim to boost local economies by attracting businesses and investments to designated areas.

State of the State 2025

Deloitte, a professional services consultancy, and Reform, a thinktank, released their latest version of their State of the State 2025 publication, exploring the key issues and opportunities facing the public sector based on interviews with public sector leaders and a survey of the public. Key takeaways include the importance of skills and further education and health and wellbeing in growing our economy; as well as frustrations about the complexity of our bureaucracy.

UK poverty 2025 report highlights persistent poverty levels

The Joseph Rowntree Foundation's UK Poverty 2025 report reveals that 21% of the UK population, or 14.3 million people, were in poverty in 2022/23. This includes 8.1 million working-age adults, 4.3 million children, and 1.9 million pensioners, and reiterates that the West Midlands has the highest rates of poverty in the UK. The report highlights the urgent need for government action to address high poverty levels and economic insecurity, which persist despite recent improvements in average incomes. The new Labour Government faces significant challenges in delivering on its pledges to reduce poverty and end the need for emergency food parcels.

Millions struggling below minimum income standard

A new report by the Joseph Rowntree Foundation reveals that 35.9% of people in the UK lived below the Minimum Income Standard (MIS) in 2022/23, up from 27.2% in 2008/09. The number of individuals below MIS rose to 24 million, with the largest single-year increase recorded. Children, young adults, and single pensioners face the highest risks, with 81.6% of children in lone-parent families below MIS. The findings highlight growing financial insecurity, even among working households.

DWP introduces new poverty measure as low-resource households increase

The Department for Work and Pensions (DWP) is developing a new poverty measure, ‘Below Average Resources’ (BAR), to provide a broader view of financial hardship. Based on the Social Metrics Commission approach, it includes savings and essential costs. Between 2022 and 2023, the percentage of individuals in low resources rose to 24%, with significant increases among children, private renters, and certain ethnic groups. The measure aims to offer a clearer picture of poverty trends in the UK. No regional breakdown is provided.

Economic Growth Alone Won’t Cut Poverty, Study Warns

A new analysis by the Jospeh Rowntree Foundation suggests that without government intervention, poverty and deep poverty in the UK will remain stagnant or even rise between 2025 and 2029 – including in the West Midlands. Child poverty is expected to worsen across the UK, except in Scotland, where targeted policies may drive a decline. Even in a strong economy with high employment, poverty reduction remains minimal. The study highlights the need for redistributive policies to improve living standards for lower-income households.

The changing face of income for Britain’s poorer households

A report by the Resolution Foundation (JRF) finds over the past 30 years, poorer UK households have seen rising earnings but shrinking social security support. Employment gains have boosted income from wages, increasing their share from 63% in 1994-95 to 68% in 2022-23. However, benefit cuts since 2010 have left the poorest fifth £1,200 worse off in real terms. Meanwhile, Council Tax burdens have doubled for the lowest earners, highlighting growing financial strain despite overall declines in housing costs for some.

Gender pay gap persists despite workforce progress

While women have made strides in closing gender wage gaps, work remains heavily gendered both in the labour market and at home. Women are less likely to participate in the workforce, earn less per hour, and take on more unpaid domestic labour. Analysis by the Centre for Economic Policy Research suggests disparities stem largely from structural constraints rather than inherent differences. Parenthood, cultural norms, and workplace structures reinforce these gaps, highlighting the need for policy interventions to create more equitable economic opportunities for women.

Coventry and Warwick Business School join UNESCO Culture 2030 Initiative

UNESCO has selected Coventry and Warwick Business School to participate in the UNESCO Culture 2030 Indicators Initiative, highlighting culture's role in sustainable development. In collaboration with Coventry City Council, this project aims to measure and evaluate culture's contribution to the United Nations' 2030 Agenda for Sustainable Development. This initiative underscores Coventry's cultural significance and Warwick Business School's commitment to global sustainability efforts.

Walsall Council funds Community Shops to aid struggling families

Walsall Council has allocated £200,000 to establish community shops offering affordable food and essentials to support families and elderly residents affected by the rising cost of living. Three organisations in Bloxwich, Bentley, and Darlaston have already received funding, with the first shop opening at the Stan Ball Centre on 28 January 2025. These shops, staffed mainly by volunteers, aim to complement food banks and provide more affordable options for residents.

West Midlands Police allocates £100,000 for hidden crime victim support

The West Midlands Police and Crime Commissioner, Simon Foster, has made £110,000 available to support victims and survivors of "hidden" crimes like female genital mutilation, forced marriage, and human trafficking. Grants up to £20,000 are available for smaller organisations and charities to help victims recover. The funding aims to address harmful practices that have long-lasting impacts but remain largely hidden.

£330,000 My Community Fund launched for 2025/2026

The West Midlands Police and Crime Commissioner has also launched the My Community Fund for 2025/2026, offering up to £5,000 to local groups working to prevent and reduce crime. Funded by money seized from criminals under the Proceeds of Crime Act 2002, the initiative supports projects aiming to improve community safety. Last year, over 50 groups received funding, including anti-knife crime charity Birmingham Says No, which used the money to mentor young aspiring rappers.

Ministers urge businesses to use Jobcentres for recruitment

Work and Pensions Secretary Liz Kendall is encouraging UK businesses to collaborate with Jobcentres to fill thousands of vacancies. Following the Chancellor's growth speech, Kendall highlighted B&M's success in filling nearly 3,000 positions through Jobcentres. The Department for Work and Pensions aims to reform Jobcentres, integrating them with the National Careers Service to better meet employers' needs. This initiative is part of the Government's Plan for Change to boost economic growth and job opportunities across the country.

Knighthead invests £100mn in east Birmingham Sports Quarter

US company Knighthead has invested £100 million in a regeneration project in East Birmingham, creating a new Sports Quarter. The development includes a 60,000-seat stadium, sports facilities, and commercial and residential spaces, projected to create 8,400 new jobs annually. Business Secretary Jonathan Reynolds highlighted the project's role in boosting local investment and growth, while Culture Secretary Lisa Nandy emphasised its potential to drive regeneration and benefit the community.

Night Time Economy Summit energises Birmingham with global insights

Birmingham's Hockley Social Club hosted the annual Night Time Industries Association (NTIA) Global Night Time Economy (NTE) Summit. The summit, Europe’s largest, attracted 2,000 professionals and global leaders from across the NTE industries. The event featured 275 speakers across 70 panels, addressing topics like harm reduction, grassroots venues, and diversity. The summit highlighted the NTE's £2.4bn economic contribution, urging government action to support the industry. The gathering boosted local businesses and resulted in the launch of the annual Electronic Music Report, emphasising the sector's resilience and economic impact.

Birmingham sets construction records, but new projects decline

Birmingham’s 2024 Crane Survey conducted by Deloitte reveals record-breaking activity in residential and student accommodation sectors, with 3,180 homes and 2,242 student bedspaces completed. However, new construction starts fell significantly from 20 in 2023 to just 11 in 2024. Despite the slowdown, the city remains strong in residential development and continues to see office refurbishments. A new infrastructure sector, including the HS2 station, was added, while future plans show substantial growth potential in office, education, and hotel sectors.

West Midlands secures sites for ultra-fast EV charging network

The West Midlands Combined Authority has secured three key sites for a network of ultra-fast EV charging stations, with the first location in Erdington receiving outline planning approval. Additional sites in Longbridge and Sheldon will support the region’s push toward sustainable travel. Each station, set to be operational next year, will feature 20 ultra-fast chargers, delivering 1,500 hours of charging daily. The initiative, backed by £1.3bn in government and private funding, aims to expand access across the region.

Labour force headlines

Latest data showed the total claimant count rose by 0.8% in the WMCA area from December 2024 to January 2025 (UK: 1.7%). The number of claimants as a proportion of residents aged 16-64 years old was 7.9% compared to 4.1% for the UK in January 2025. Across the Combined Authorities, the WMCA had the highest rates, West Yorkshire Combined Authority was the second highest at 5.4% down to 2.1% for York and North Yorkshire Combined Authority.

Latest data showed the youth claimant count rose by 0.4% in the WMCA area from December 2024 to January 2025 (UK: 1.4%). The number of claimants as a proportion of residents aged 18-24 years old was 9.4% compared to 5.4% for the UK in January 2025. Across the Combined Authorities, the WMCA had the highest rates, Tees Valley Combined Authority was the second highest at 7.8% down to 2.8% for both the West of England and York and North Yorkshire Combined Authority.

A-Level and T-Levels results published by Department for Education

Across the WMCA area, the average A-Level grade was C- in Sandwell, C in Wolverhampton, and C+ in Birmingham, Coventry, Dudley, Solihull and Walsall. For T Levels, the average grade ranged from Merit in Coventry and Sandwell, Distinction- in Birmingham, and Merit+ in Dudley, Solihull, Walsall and Wolverhampton.

Skills levels crucial for city productivity and employment

A recent analysis by the Centre for Cities highlights the importance of skills levels in attracting high-paying jobs and benefiting city residents. Cities with a higher proportion of highly-qualified residents are more productive, driving income growth and improving living standards. However, cities with a higher proportion of residents lacking formal qualifications have some of the lowest employment rates. Addressing skills challenges is essential for economic participation and achieving the Government’s Industrial Strategy goals, particularly in places like Birmingham.

University education still pays off, despite rising costs

The Resolution Foundation finds graduates earn significantly more than non-graduates over their lifetimes, with men gaining an estimated £280,000 and women £190,000 after tax and student loan repayments. While the graduate earnings premium has shrunk, university education still leads to better long-term financial and health outcomes. The UK taxpayer contribution to higher education is the lowest in the OECD, making it a strong investment. Degree apprenticeships, often seen as an alternative, have lower completion rates and less impact on social mobility.

Measuring the net present value of further education

A report by the Department for Education (DfE) estimates the Net Present Values (NPVs) of Further Education qualifications, exploring the economic benefits of further education. On average, over the course of a qualification achiever’s lifetime, it finds level 2 qualifications return between £10 and £15 in benefits per £1 invested, with between £40,000 and £59,000 value for each individual achiever. Level 3 returns £7 per £1 invested, with between £47,000 and £78,000 value to the achiever. Level 2 and 3 apprenticeships each return £5 per £1 invested with £77,000 and £89,000 value per achiever respectively. Level 4/5 apprenticeships return £3 per £1 invested with £80,000 value per achiever. However, value varies by subject area, with STEM subjects offering higher returns.

Coventry City Council launches Green Skills Roadmap

Coventry City Council has unveiled its Green Skills Roadmap, a comprehensive guide to support educators, employers, and investors in integrating sustainable net-zero skills into their operations. The roadmap outlines a clear action plan to build a robust green skills ecosystem, helping businesses transition to sustainable practices and preparing future generations for green careers. With the WMCA’s target of achieving net-zero emissions by 2041, this initiative aims to attract green industry investment, create meaningful job opportunities, and pave the way for a sustainable future in Coventry.

Skills gaps and shortages in the creative industries

A report by the Department for Culture, Media and Sport explores the skills landscape in the creative industries. It finds skills gaps and skills shortage-related vacancies are lower than in other sectors, but there are specific skills that are more in demand than others. Further, skills gaps and shortages affect a higher proportion of professional, managerial and sales-related occupations in creative industries than in other sectors, reflecting the higher proportion of the sector’s workforce being employed in higher level occupations.

West Midlands faces rising impact from digital skills shortage

A growing digital skills shortage threatens the UK economy, with potential losses of up to £27.6 billion and more than 380,000 jobs by 2030. While the West Midlands is currently among the least affected regions, projections show it will face a much greater impact in the coming years. The shortage extends beyond high-tech industries, affecting sectors like retail and manufacturing. Experts stress the need for coordinated efforts in education, industry, and government to prevent long-term economic damage.

High pollution levels inside homes

New research from the University of Birmingham reveals that indoor pollution levels can be higher than outdoor levels, potentially affecting brain function. Pollution monitors in three homes showed that indoor air often exceeded WHO safety guidelines. Sources include house dust, cooking, and candles. The study highlights the importance of addressing indoor air quality, especially as people spend 80-90% of their time indoors. Measures like using extractor fans and opening windows can help mitigate the issue.

Study finds no link between school phone bans and improved grades or wellbeing

A University of Birmingham study reveals that banning phones in schools does not improve grades or mental wellbeing. The research, published in the Lancet's journal for European health policy, compared 1,227 students across 30 schools and found no significant differences in sleep, behaviour, or exercise between schools with and without phone bans. However, excessive smartphone use was linked to poorer mental health, lower grades, and disruptive behaviour. The study suggests focusing on reducing overall phone usage rather than just banning them in schools.

Young people’s mental health crisis

A report by Centre for Mental Health finds that the current lack of capacity in the mental health system means that many young people reach crisis point. With more than 1 in 5 children and young people in England having a diagnosable mental health problem. However, the NHS is only able to support approximately 40% of those in need. This is holding back growth plans, with the impact of childhood mental health problems leading to £1tn in lost earnings across the generation. No regional analysis is provided.

UK’s poor health is exacerbated by a lack of social capital, leading to increasing illness and mortality

A report by Demos, a think tank, highlights that strong social and community ties can improve health outcomes, but have been steadily deteriorating due to issues such as under-investment in social infrastructure and local government funding cuts. Investing in social capital could reduce healthcare costs and improve well-being, but the complexity of its effects requires nuanced, context-specific and place-based interventions. The report also calls for a whole-of-society approach towards health. No regional analysis is provided.

Rethinking the Easterlin Paradox: How we measure happiness matters

A study by the Centre for Economic Performance challenges the Easterlin paradox, which states that at a point in time happiness varies directly with income both among and within nations, but over time happiness does not trend upward as income continues to grow: while people on higher incomes are typically happier than their lower-income counterparts at a given point in time, higher incomes don't produce greater happiness over time. The study argues that reported life satisfaction is influenced by shifting perceptions rather than absolute economic conditions. People adjust their interpretation of happiness scales over time, which may explain why national happiness appears stagnant despite economic growth. The study suggests that traditional economic measures fail to capture well-being accurately, advocating for broader indicators that account for subjective adaptation and changing reference points in self-reported happiness.

Rethinking mental health: Addressing over-medicalisation

The "Change the Prescription" report by the Centre for Social Justice highlights the rise in mental ill-health in the UK and critiques the prevailing medical model, where the normal ups and downs of life are often seen as medical problems, often failing to address underlying issues. It advocates for a new approach focusing on the root causes of distress, emphasising the need for non-pharmaceutical interventions, strengthening families, and protecting children from harmful online content. The report calls for a National Work and Health Service and a National Strategy for Social Prescribing to foster positive mental health and tackle over-medicalisation.

Public expenditure on secondary healthcare and health inequalities

A paper by Centre for Health Economics (CHE) examines the impact of public expenditure on secondary care on health inequalities. The analysis showed that the middle deprivation group gained most from funding increases, and the poorest did not always experience the largest health benefits from such funding. The paper asserts that ‘additional efforts are needed to ensure secondary care is targeted and used more effectively to improve the health of socially disadvantaged individuals living within large administrative areas’.

Fixing housing for families: A key to tackling child poverty

A report by IPPR, a think tank, finds that, with housing costs being the largest burden on families, secure and affordable homes are crucial for children’s well-being. The rise of private renting has led to instability and overcrowding, while welfare reforms have weakened support. To address this, policies should include aligning housing allowances with local rents, stronger protections for renters, and expanding social housing. These measures would provide families with the stability they need and form a key part of any child poverty strategy.

New funding approach to unlock affordable rent housing

Social Finance, with support from the Joseph Rowntree Foundation, proposes the Affordable Homes Acquisition Scheme (AHAS) to boost affordable rent social housing. The scheme suggests using long-term government guaranteed debt to reduce reliance on capital grants, which have become less effective due to rising costs. AHAS aims to provide scalable, off-balance-sheet financing for housing associations, potentially doubling the number of affordable homes produced under the current Affordable Homes Programme.

Inequalities in housing still persistent

A report by the Resolution Foundation explores ethnic inequalities in housing affordability. It finds Black and Arab communities are significantly over-represented in homelessness. Pakistani and Bangladeshi families are significantly impacted by overcrowding. Ethnic minority communities are overrepresented and struggling in the rented sector. Average housing costs are unaffordable for an average woman’s salary across the whole country. Housing inequality has significant downstream effects on people’s health and ability to work.

Balancing land use: The challenge of planning for the future

With growing demands on finite land, the UK must balance housing, energy, transport, and nature restoration. Government objectives often compete, requiring strategic planning to manage trade-offs. The key is delivering high-quality, sustainable housing that meets local needs, aligns with net-zero commitments, and integrates with transport. A report by the IPPR argues that to achieve this, national and regional planning must take a coordinated approach, ensuring developments are both environmentally responsible and supported by local communities.

Electrifying industry and distribution networks: Considerations for policymakers

A policy brief from the UK Energy Research Centre and the Aldersgate Group urges the government to strengthen electricity networks to meet new demands and support industrial decarbonisation. It highlights the need for clear plans for industrial electrification and improved data on future electricity demand. Industrial decarbonisation is crucial for achieving net zero and economic growth, with electrification potentially delivering over 40% of the necessary greenhouse gas reductions. Without investment, power constraints could hinder progress by 2030.

Towns feel left behind but remain connected to cities

New research from Onward highlights growing pessimism among town residents compared to their city counterparts. While 62% of city dwellers believe their area is thriving, only 44% of town residents feel the same, with some towns, like Dudley, expressing deep dissatisfaction. Despite this, towns show no resentment toward cities, with most residents supporting policies benefiting both. Many are willing to travel to cities for work and leisure but strongly desire essential amenities within their own communities.

Water smart housing: Economic and political imperative

A Public First report, part of the Ofwat Innovation project, highlights the economic and political necessity of water smart housing in the UK. Research indicates that water scarcity hinders development, costing the UK economy £25bn over five years. Building water smart homes could deliver £20bn in value and enable the construction of nearly 50,000 additional homes. Public support for water recycling is high, but messaging must address health concerns to maintain trust and acceptance.

Spades in the ground on £295m West Midlands Metro extension

Additional funds to complete the Black Country extension were agreed with the Department for Transport – the extension will provide better connection between the Black Country and Birmingham city centre, improving access to jobs and opportunities.

Drones - eye in the sky helping traffic to keep moving

Drones are helping transport chiefs inform drivers and tackle traffic congestion across the West Midlands by relaying live footage to a control centre. Transport for West Midlands (TfWM) said the drones helped "cover gaps" not picked up by the region's static CCTV cameras. They also provide information after accidents and road closures. Kerry Blakeman, of West Midlands Drone Network, said they were "providing an eye in the sky" and teams were making "better decisions" to reduce congestion.

New AI technology reveals road safety risks across the West Midlands

Near misses between drivers and pedestrians are being detected using the latest AI technology as part of a region-wide pilot scheme to improve safety and save lives. VivaCity’s AI-powered vision sensors detect and record near misses, such as when a vehicle passes within inches of a slower moving pedestrian or cyclist, so that potential collision hot spots can be identified before someone is actually hurt.

View on artificial intelligence

There has recently been a great deal of debate about the development of Artificial Intelligence and its place in society. In light of this, TfWM’s Human Intelligence Team conducted an online survey to understand people’s use and opinions relating to this technology, especially in terms of transport. The survey ran from 14- 27 August 2024 and received 645 responses.  Headlines were that 60% stated they were either very familiar or somewhat familiar with AI, with high trust levels, even more so amongst younger respondents. Use of AI in transport would be most acceptable in route optimisation (88%) and smart traffic management (82%). It was least acceptable in emergency responses/safety (64%) and in dealing with customer feedback (46%).

Transport devolution is delivering, but must go ‘further and faster’ to unlock economic growth – report highlights

English transport devolution is delivering real change across major cities, from enhancing connectivity to boosting housebuilding, but must go ‘further and faster’ to unlock additional economic growth according to the Urban Transport Group in a report released on 6^th February 2025. The report shines a spotlight on the success of transport devolution in England’s major city regions & recommends working with city regions to secure sustainable long-term funding for all local government tiers, enabling further devolution with greater local investment levers, and delivering on devolutionary commitments.

Bus Services Bill ‘heralds smoother ride’ for English bus services

The Bus Services Bill, which was recently introduced into the House of Lords, “heralds a smoother ride” for bus services across England, according to the Urban Transport Group, the UK’s network of transport authorities. The Bill includes a number of measures to change how bus services are currently run in England. These include:

• streamlining powers for Local Transport Authorities (LTAs) to take control of their local bus services through franchising
• making the process of introducing and operating franchising smoother and more efficient
• lifting the ban on creating new publicly owned (municipal) bus companies
• tackling antisocial behaviour and improving safety and accessibility on buses

Influencing Transport Lab – hosted by Transport for West Midlands

The Influencing Transport Lab (ITL) aims to foster collaboration in behaviour change to advance a sustainable transport ecosystem. Its existence reflects how our transport challenges won’t be solved by just building infrastructure or implementing new technology. People will need to use transport in a fundamentally different way if we want to hit our collective sustainability targets. At its heart, this is about improving a collective understanding around people and their approach / ability / attitudes to transport. With this understanding it is possible to educate, incentivise, prevent and empower certain transport behaviours, which are advantageous to the individual and society in general. The ITL is planned to act as a convening force and a National focal point for influencing behaviour change in transport. Creating intelligence by running trials on behaviours / interventions not well understood. Pooling insight and intelligence from all relevant actors in this space (whether commercial, government, charitable or academic). Enabling others to benefit from applying this intelligence in a targeted way. Achieving sustainable transport outcomes through a systematic and scientific approach. The ITL is hosted by Transport for West Midlands and endorsed by the Department for Transport. Please contact itl@tfwm.org.uk if you would like any further information.

Ensuring public confidence in the EV transition

Public support for electric vehicles (EVs) remains strong but hinges on addressing practical concerns like cost and charging accessibility. A report by IPPR finds while most voters see EVs as mainstream, affordability and infrastructure gaps could undermine enthusiasm. The government must focus on making EVs cheaper, improving rural charging, and ensuring reliability to maintain political momentum. Policies should aid those reliant on cars rather than subsidising wealthier buyers. Addressing these concerns will secure lasting support and prevent backlash against green policies.

Mobility hubs: The future of sustainable transport in the UK

Mobility hubs (MHs) are emerging as a key solution to urban congestion and environmental concerns in the UK. In a recent blog, City-REDI explores how these integrated transport centres can reduce car dependency, improve connectivity, and support sustainable urban planning. Birmingham is leading the way with new pilot projects and investment in mobility hubs. While challenges remain, such as funding and infrastructure gaps, MHs offer a promising model for cities aiming to enhance accessibility and sustainability.

Local government finance settlement for 2025-2026 announced

The UK Government has confirmed a local government finance settlement for 2025-2026, granting councils in England access to over £69bn in funding, a 6.8% increase from the previous year. This settlement marks the beginning of efforts to rebuild and stabilise local government, with plans for a multiyear settlement starting in 2026-2027. The Government is also introducing a new recovery grant and additional funding for social care services. Council tax increases will be limited, with specific higher increases approved for six councils, including Birmingham City Council.

Birmingham City Council announces major cuts to balance budget

Birmingham City Council plans to cut £148mn in spending and increase council tax by 7.49% to balance its budget. Measures include fewer bin collections, dimmed streetlights, and reduced road maintenance. Cuts will affect adult and children's social care, city operations, and housing. Labour leader Cllr John Cotton aims to stabilise finances, while Conservative opposition leader Robert Alden criticises the administration for previous tax hikes and reduced services. Additional £30m savings are expected by 2026.

Rebooting regionalism?

England's regional governance is at a crossroads. Despite strides in devolution, the system remains fragmented. The 2024 English Devolution White Paper proposes 'Strategic Authorities' nationwide, but risks creating ineffective regional tiers. According to a new paper by REFORM, many authorities may be too small and constrained by outdated models, limiting their ability to drive growth and improve services. "Rebooting Regionalism" advocates for a genuinely strategic regional tier, tailored to the specific needs of different areas, to fully unlock devolution's potential.

Growing calls for devolution in centralised England

Despite longstanding demands for devolution, the UK government has yet to deliver significant decentralisation. The pandemic reinforced local community ties, and with economic disparity widening, calls to shift power and funding closer to communities are gaining momentum. A new workstream by Localis explores policies for a more democratic and locally empowered England, advocating for meaningful power at the neighbourhood level to drive genuine, community-led change in governance and economic development.

Labour's devolution push faces uncertainty in industrial strategy

The new Labour government emphasises devolution as key to its growth agenda, pledging to empower combined authorities. However, uncertainty remains over the long-term role of city-region mayors in industrial policy. Whitehall remains sceptical of local authorities’ capacity, risking a top-down approach that could worsen regional inequalities. Experts argue that mayors and devolved bodies must lead industrial policy, ensuring local investment, job creation, and skills development to drive sustainable economic growth.

Whitehall Monitor 2025

The Institute for Government's "Whitehall Monitor 2025" report reveals that high staff turnover, unclear workforce planning, declining morale, and uncompetitive pay are undermining the civil service's capacity to implement the Labour government's mission-led agenda. Despite Labour's commitment to a "Plan for Change," the report finds little evidence that this approach has significantly influenced Whitehall's operations thus far.

AI revolution to reshape UK civil service policy making

The rise of generative AI is set to transform UK civil service policy making, offering faster data analysis and automation of routine tasks. Tools like Redbox and Parlex are already streamlining processes, but concerns remain over AI's limitations, potential biases, and its impact on human expertise. Institute for Government find the key challenge is ensuring officials use AI effectively while retaining critical judgment and insider knowledge. Successfully integrating AI could lead to a more efficient, informed, and responsive government.

New website helps residents and businesses track pollution in real time

A ground-breaking new West Midlands website has just launched giving residents and businesses the chance to see for themselves just how clean the air is in their neighbourhood.  Near-live air quality data is being collected by the largest hi-tech network of sensors outside of London and made publicly available at people’s fingertips online at cleanair.wmca.org.uk.

New evidence highlights benefits of natural flood management

The Environment Agency's updated Working with Natural Processes Evidence Directory reveals the significant benefits of natural flood management (NFM) in reducing flood risk and enhancing environmental resilience. The directory, informed by over 700 scientific papers, highlights measures such as catchment woodland, saltmarsh restoration, and coastal reefs. These measures not only mitigate flooding but also improve soil, biodiversity, and water quality. The directory aims to guide future investment and support the implementation of NFM across the UK.

Government support for solar panels: A path to reducing fuel poverty?

The new Government aims to triple solar capacity by 2030, promoting a "rooftop revolution" to install solar panels on millions of homes. Domestic solar can reduce energy bills by an average of £440 annually, benefiting especially poorer households. However, uptake has been low due to high upfront costs. According to a new report by the Resolution Foundation, policy support is needed to maximise benefits, including means-tested grants and loans. Effective support could significantly reduce fuel poverty, with up to one-third of fuel-poor households benefiting from solar savings.

Labour’s warm homes plan: A key step in UK’s decarbonisation drive

Decarbonising UK homes requires £315bn, with the Labour government pledging £13.2bn over five years for energy efficiency and low-carbon heating. A report by the New Economics Foundation recommends stable, needs-based funding, local authority-led retrofits, and low-interest loans to boost uptake. Tackling fuel poverty is central, with over 2.26m households set for upgrades in a decade. The strategy could generate £6.90 in economic activity per £1 invested, creating green jobs and strengthening supply chains for the net-zero transition.

UK urged to strengthen action on clean growth and net zero

Despite global economic challenges, the climate crisis remains the most urgent threat writes Localis. The UK government and private sector have set ambitious decarbonisation targets, but coordinated action is needed to achieve them. Building on its 2019 report The Route to Clean Growth, a new initiative by Localis will examine how local regions are preparing for the transition to net zero and propose policy solutions to overcome barriers, ensuring a sustainable and resilient low-carbon economy.

Net zero council relaunched to drive clean energy mission

The UK government has relaunched the Net Zero Council to accelerate the transition to clean energy and drive economic growth. Co-chaired by Energy Secretary Ed Miliband and Co-operative Group CEO Shirine Khoury-Haq, the Council includes leaders from major businesses, civil society, and local authorities. The Council aims to provide expert input, support sector roadmaps, and help small and medium-sized enterprises decarbonise, ensuring a fair and prosperous transition to net zero.

Public support for net zero at risk amidst growing ‘greenlash’

A new report by the Social Market Foundation highlights public support for the UK’s net zero goal but warns of growing scepticism and lack of engagement, particularly around heat pumps. Nearly half of Britons feel the transition is being imposed on them, with low trust in government guidance. Only 30% of homeowners feel confident about heat pumps, and misinformation is widespread. The report urges the government to improve communication, combat misinformation, and showcase heat pumps in public buildings to build trust.

National Wellbeing Dashboard published

A new dashboard has been published ONS containing an overview of well-being in the UK on an individual, community and national level. Regional analysis is not currently available. Highlights include:

• Median household disposable income in the UK was £34,462 in the financial year ending (FYE) 2023, a decrease of approximately 2.5% from FYE 2022
• Median household wealth was estimated to be £293,700 in the latest period (April 2020 to March 2022)
• Approximately 6 in 7 adults in Great Britain said they have made at least some lifestyle changes to help tackle environmental issues.
• UK territorial greenhouse gas emissions continue to fall and have more than halved (52.7%) since 1990
• Renewable energy as a percentage of gross final energy consumption in the UK was 15.5% in 2023, the highest to date.
• Approximately 1 in 13 adults in Great Britain feel lonely often or always
• Approximately 1 in 20 UK adults reported low satisfaction with their lives

WMCA Economic Dashboard characterises a regional economy waiting for the spring

Both the regional business activity index and future activity index were down again slightly in January 2025, suggesting continued concerns in business confidence. At the same time, claimant counts appear to have plateaued for both overall and youth age groups in the WMCA area. The evidence points to a regional economy that is holding steady. See the full dashboard in the WISE annex at the bottom of this page.

Stability in full-time local authority employment in the West Midlands

The percentage of Local Authority employees working full-time in the West Midlands remained stable, with a slight dip in late 2022 followed by a small increase in early 2023. Overall, the trend shows a steady rise in full-time employment among LA staff in the region.

West Midlands sees steady employment among universal credit claimants

The proportion of Universal Credit claimants in employment in the West Midlands remained stable from March to May 2023, with only a slight dip in May. Overall, employment levels among claimants showed minimal variation during this period.