Important Developments for Your April 2025
Headlines
A Landmark Day for Devolution in the West Midlands
On 14 March, the West Midlands Combined Authority Board approved the Integrated Settlement: this brings together funding from government that relates to five functional responsibilities into one single pot. This will give the WMCA and its local authority partners greater control and choice over what they can spend devolved funding on. Administrative on paper, it is a groundbreaking step forward.
West Midlands Futures Green Paper to be launched on 30 April
The WMCA is gearing up for an engagement programme focused on the future of the West Midlands economy starting with the publication of its Green Paper on 30 April. Over the last year, working with partners, the WMCA has been developing a deeper understanding of the opportunities and challenges facing the region. We look forward to your engagement with and feedback on the Green Paper in due course.
US Tariffs Significant Threat to West Midlands’ Automotive Industry
The US's 25% tariffs on car imports could cost the UK £9.8 billion in GDP from 2025 to 2030, risking 137,000 jobs warns the University of Birmingham. The West Midlands, home to major automotive firms, could be hardest hit, losing £6.2 billion in GDP, which is 62% of the total impact on the UK. The tariffs will make UK automotive products more expensive for US consumers, leading to a significant drop in demand and severe economic repercussions for the UK.
International Comparators to the West Midlands
New research by the WMCA aims to shift the focus on economic growth from a London-centric model by comparing the WMCA area with international city-regions that have surpassed their own country's productivity growth rates. Through a four-stage process, several city-regions were identified which could become benchmarks for future study and comparison: Lille, Greater Porto, Saxony, Lombardy, and additional regions in Mexico and Japan. Further research will explore factors contributing to their rapid productivity growth to draw lessons for the WMCA area.
WMCA State of the Region Report Released
The West Midlands State of the Region 2024-2025 report reviews the region's performance, highlighting key areas such as demographics, climate, economy, housing, and health. It emphasises the Mayor's priorities: jobs, homes, growth, and journeys for everyone. The report underscores the importance of inclusive growth, addressing complex regional challenges, and fostering a connected, thriving community.
UK Regional Economic Forecast Predicts Widening Growth Disparities
The latest Ernest & Young UK Regional Economic Forecast anticipates that between 2025 and 2028, London and the East of England will lead with annual Gross Value Added (GVA) growth of 1.7%, while regions like the North East and Scotland are expected to lag, with a growth of 1.4% and 1.3% respectively. The West Midlands region is expected to see annual GVA growth of 1.5% between 2025 and 2028. The report attributes these disparities to sectoral compositions, with regions strong in high-growth industries like information and communication outpacing those reliant on slower-growing sectors. It emphasises the need for targeted policies to address regional imbalances and enhance infrastructure to support equitable growth.
Graduates Power Half of West Midlands Workforce, Driving Economic Growth
New data reveals that university graduates now make up half of the West Midlands workforce, reflecting a nationwide trend in key growth sectors. Analysis by Universities UK highlights the vital role of graduates in industries such as professional services, creative industries, energy, and digital technology. With the UK projected to need 61% of workers holding higher education qualifications by 2035, experts stress the urgent need to expand access to high-level skills to sustain economic growth and competitiveness.
Government Unveils Revamped Board of Trade to Boost SME Growth and Exports
The UK government has launched a new Board of Trade to support small businesses and increase global exports. Comprising top business leaders, the board will provide expertise to help SMEs expand internationally. A Call for Evidence has also been issued to address SME access to finance, a key barrier to growth.
Social Capital Key to UK Economic Growth
The Independent Commission on Neighbourhoods highlights the importance of social capital in driving economic growth. The report argues that investments in social infrastructure, such as community centres and sports clubs, are crucial for fostering social bonds and trust, which in turn boost economic productivity and growth.
Commuting, Not Remote Work, Holds the Key to Job Satisfaction and Productivity
A new analysis by City-REDI challenges concerns about remote work harming productivity, suggesting that commuting satisfaction has a stronger impact on job satisfaction than working from home. Using UK survey data, the study finds that employees with better commute experiences report higher job satisfaction, which is linked to productivity. The findings indicate that policymakers should focus on improving transport networks rather than limiting remote work, as flexible work arrangements have a limited impact on job satisfaction, especially for men.
£100 Million Boost for Five Black Country Towns
Dudley, Walsall, Darlaston, Bilston, and Smethwick will share £100 million from the UK government for regeneration. The funds will be used for various projects, including CCTV improvements, new youth centres, outdoor gyms, and enhancements to town centres and public spaces. This investment aims to tackle anti-social behaviour, boost local economies, and improve community facilities.
UK Government Launches Drive to Tackle Digital Exclusion
Digital exclusion affects 1.6 million people in the UK, with a quarter of the population struggling with online services. The Government is prioritising digital inclusion, aiming to provide access, skills, support, and confidence. Key actions include establishing a Digital Inclusion and Skills Unit, forming a ministerial group, and collaborating with industry. The framework focuses on skills, data and device poverty, breaking barriers to digital services, and building confidence. A call for evidence seeks input from various stakeholders to improve digital inclusion efforts.
Report Highlights Bias in Recruitment for Professional Jobs
A new report by UCL’s Centre for Education Policy & Equalising Opportunities, reveals that disadvantaged and ethnic minority candidates face systemic barriers in accessing professional occupations. While application withdrawal rates are similar across backgrounds, employers disproportionately filter out less advantaged applicants at various recruitment stages. Working-class candidates struggle at face-to-face assessments, while Black applicants face the biggest hurdles online. The report urges employers to track socio-economic data, adopt inclusive hiring practices, and expand outreach beyond elite universities to improve access and social mobility.
Report Reveals Racial Disparities in Health and Living Conditions
A joint report with the Health Foundation and Runnymede Trust exposes stark racial inequalities in housing, income, and environment, impacting health outcomes. It finds that ethnic minorities, particularly Bangladeshi, Pakistani, and Black communities, face higher poverty rates, lower incomes, poor housing conditions, and reduced access to green spaces. Structural racism within employment, housing, and urban planning worsens these disparities. The report urges policymakers to address these systemic barriers to create a fairer, healthier society.
Report Calls for Stronger Remote Work Rights for Disabled Workers
Interim findings from the Inclusive Remote and Hybrid Working Study by the Work Foundation, reveal that 85% of disabled workers consider remote work essential when job hunting, with fully remote work significantly aiding health management. Employers and workers report reduced sickness absences and improved work-life balance, yet only 3.8% of job listings offer remote options. The report urges expanded remote opportunities, a stronger right to hybrid work for disabled employees, and reforms to the Access to Work Scheme to address delays and accessibility issues.
Reducing Child Poverty in the UK: A Call to Action
A report by the Resolution Foundation, outlines strategies to reduce child poverty in the UK, emphasising the need for policy changes in social security, housing, and employment. Without intervention, child poverty is projected to rise to 33% by 2029-30. Key recommendations include abolishing the two-child limit and benefit cap, extending Free School Meal entitlement, and adjusting Local Housing Allowance. No regional forecasts were made.
Strengthening Social Bonds to Prevent Crime
A new report from Demos argues that enhancing social capital can reduce crime rates. By fostering personal networks and community cohesion, individuals are less likely to engage in criminal activities. The report emphasises the need for government action to build social bonds, which can lead to improved economic and social outcomes.
UK Sees Surge in Low-Paid Jobs
The Living Wage Foundation's 2024 report reveals a significant rise in low-paid jobs, with 15.7% of UK employee jobs (4.5 million) earning below the real Living Wage, up from 13.0% in 2023. This marks the largest annual increase since 2012, driven by the cost-of-living crisis. Women and part-time workers are disproportionately affected. In the West Midlands the proportion of low-paid jobs rose from 14.3% in 2023 to 18.3% in 2024 – both above the UK average. No recommendations were given as to addressing the issue in this data report.
Earnings Volatility Puts Financial Strain on UK Workers
A new report by the Resolution Foundation, analysing HMRC payroll data from 2014–2019 highlights significant earnings volatility among UK employees. With nearly 30% experiencing monthly pay fluctuations of at least 10%. Young workers, part-time employees, and those in hospitality and social care are most affected. The report warns that unstable income leads to financial stress and urges reforms to Universal Credit, employment rights, and savings policies to provide greater stability for low-paid workers.
Government Office for Science Unveils New Series on Emerging Technologies
The Government Office for Science has launched bite-sized introductions to groundbreaking technologies such as neurotechnology, fusion energy, and robotics. These concise resources, backed by expert insights, explore recent advancements, potential applications, and challenges for the UK. Professor Dame Angela McLean, Government Chief Scientific Adviser, emphasised their role in sparking discussions on maximising the benefits of these technologies and aiding policymakers in strategic decision-making. This initiative expands on previous Rapid Technology Assessments covering topics like AI and digital twins.
Lord Willetts Appointed Chair of Regulatory Innovation Office to Accelerate Emerging Technologies
The UK government has appointed former science minister, Lord Willetts, as the first Chair of the Regulatory Innovation Office (RIO) to fast-track emerging technologies, from AI in healthcare to engineering biology. RIO aims to streamline regulations and eliminate barriers preventing groundbreaking innovations from reaching the market.
Midlands Engine Funding to End in 2025
The UK government has confirmed that funding for Midlands Engine will conclude on 31 March 2025, ending a decade-long collaboration aimed at boosting regional growth. The Midlands Engine Partnership, involving local governments, businesses, and universities, has driven investment and raised the region's profile. As programmes wind down, efforts will focus on supporting staff and maintaining regional momentum, ensuring the Midlands' continued economic importance in the future. The legacy of regional collaboration will remain vital for ongoing success.
RACE Solutions CEO Wins Minerva Pitch Up Competition at Venturefest West Midlands 2025
Raoul Popescu-Ghimis, CEO of RACE Solutions, won the Minerva Pitch Up competition at Venturefest West Midlands 2025. His company, which developed the first cloud-based simulation software for vehicle suspension and chassis development, secured £3,000 and bespoke business support. The event, sponsored by WMCA and other partners, showcased innovation and collaboration. Raoul's victory highlights his company's global impact and commitment to growth.
UK's First Retrofit Private 5G Network Deployed at JLR's Solihull Site
The UK's first retrofit private 5G network in a large-scale manufacturing facility has been deployed at Jaguar Land Rover’s (JLR’s) Solihull site as part of the 5G Innovation Regions Advanced Manufacturing programme. Enabled by Ericsson and funded by the Department for Science, Innovation and Technology, the network aims to revolutionise JLR’s manufacturing processes through real-time data transmission. This milestone project, led by WM5G, supports JLR’s digital transformation and sets a blueprint for wider industry adoption.
New Logistics Park Opens
The £32.9m Urban 8 Logistics Park in King’s Norton, Birmingham, has been completed, transforming the former Pilkington Automotive and GKN Aerospace sites into a logistics hub. The development spans 29 acres of former brownfield land, and it’s set to create up to 900 jobs.
New AI Training for Small Businesses
A new AI training programme is empowering small business owners in the West Midlands to bridge the AI skills gap, as research reveals that while entrepreneurs are eager to embrace AI, many lack the necessary training to do so effectively. A study by Small Business Britain, in partnership with BT Group, found that 68% of small business owners believe AI could significantly boost their growth. However, many struggle with understanding and integrating AI into their operations. To tackle this challenge, Small Business Britain and BT Group have launched the AI for Small Business programme—a free, six-week online course designed to upskill small business owners with essential AI and digital skills.
Government Proposes Major Overhaul of Benefits and Employment Support
A new UK Government green paper outlines significant welfare reforms including a "right to try" work scheme allowing benefit claimants to test employment without losing support. Personal Independence Payment (PIP) eligibility will tighten, requiring at least four points on assessments, while incapacity benefits for under-22s may be scrapped. Universal Credit's (UC’s) limited capability element will be cut for new claimants from 2026, with a modest rise in the standard allowance. The Work Capability Assessment will be replaced by PIP assessments from 2028. The Government reports changes were needed to incentivise more people into work, as well as to cut rapidly increasing spending on health-related benefits, with £5bn expected savings. A Resolution Foundation briefing estimates between 800,000 and 1.2m people are set to lose PIP entitlement and any benefits linked to it, worth an average of £4,000 per year by 2029-30. The UC limited capability element cut is worth an estimated £2,800 a year for new claimants, affecting 2.6 million families projected to be in receipt of it by 2029-30. On average across all changes, households with at least one disabled member are estimated to lose £400 a year by 2029-30, while households with no disabled members will gain £35 a year.
Data on Young People Not in Education, Employment or Training Released
The Department for Education (DfE) have released data containing estimates for the proportion of young people not in education, employment or training (NEET), using the Labour Force survey. In England, in 2024 the NEET rate increased by 1.5pp to 13.6% year on year. In the West Midlands region in 2024, it decreased by 2.3pp to 11.6%.
Rising Health Issues Drive Economic Inactivity
The Keep Britain Working review by the Department for Work and Pensions (DWP) has identified a sharp rise in work-limiting health conditions, with two million more people affected since 2019. Musculoskeletal and mental health issues are key drivers, with one in five working-age individuals now impacted. The increase is most pronounced among 16-34-year-olds, up 77% since 2015. If trends persist, a further 600,000 people could leave the workforce. Full recommendations to address this crisis are expected in autumn 2025.
Surge in Disability Claims Driven by Mental Health Crisis
The number of working-age adults claiming disability benefits in England and Wales has risen sharply since the pandemic, with 4 million now receiving support—up from 2.8 million in 2019. A report by the Institute for Fiscal Studies (IFS) finds that over half of this increase is linked to mental health conditions, which now account for 44% of disability claims. Working-age mortality rates remain above pre-pandemic levels, with ‘deaths of despair’ rising. Sickness absence rates have also surged, underscoring the worsening health crisis among the workforce.
Calls for Overhaul of Employment and Welfare System
A new report from the Centre for Social Justice focusses on the need for urgent employment and welfare reform to tackle economic inactivity. It urges extending conditionality in health benefits and introducing a nationwide WorkWell programme. The report also advocates for skills credits to boost youth employment and devolving support to regions. Long-term measures include addressing male employment, worklessness in certain areas, and improving career progression and tribunal processes to ensure fair and efficient outcomes.
Breaking the Benefit Trap
The Learning and Work Institute's report reveals that 3.5 million people receive incapacity benefits, a 37% increase since the pandemic. The report recommends improving financial support, introducing a Benefit Passport, and expanding employment support to help 500,000 more people into work over the next decade. No regional breakdown is given in the analysis.
Limited Long-Term Benefits of Education Maintenance Allowance
A new study examines the long-term effects of the Education Maintenance Allowance (EMA), which was scrapped in England in 2011 but continues in devolved nations. While it modestly increased education participation among disadvantaged students, the report finds no measurable improvement in academic attainment or university attendance. It also suggests slight long-term reductions in earnings and employment due to decreased work experience. Overall, the EMA provided only 40p of benefits for every £1 spent.
Life Sciences Sector Poised for Major Growth, But Skills Gap Looms
A new report from Futures Group highlights rapid growth in the life sciences sector, with employment rising 16% since 2016, far surpassing the national average. By 2035, the sector could create 70,000 jobs, driven by BioPharma, MedTech, and AI advancements. However, a significant skills gap remains, with 43% of employers requiring degree-level qualifications. The report calls for diverse training pathways, including apprenticeships, to equip workers with scientific, operational, and emerging tech skills.
West Midlands Mayor Faces Charitable Giving Gap in Youth Unemployment Fight
A new report by Centre for Cities highlights that low charitable donations in the West Midlands hinder efforts to tackle youth unemployment, a key priority for Mayor Richard Parker. With youth unemployment rates double the national average in parts of the region, fewer local donors and lower-than-average contributions pose challenges. The report suggests the Mayor could facilitate partnerships with national charities and establish a dedicated local fund to boost support for employment-focused charities.
Wolverhampton to Pioneer Work Experience Overhaul in National Pilot
The WMCA has launched a pilot in Wolverhampton to transform work experience for schoolchildren. Instead of a traditional two-week placement, students will engage in 10 days of high-quality experiences throughout secondary school, targeting disadvantaged youth. Backed by major employers, the initiative aims to improve job readiness and break down employment barriers. Wolverhampton is one of four national test sites, shaping a new model for future careers education across the UK.
NOCN Group Report Urges Government to Invest in Training for Part-Time Workers
A new report by NOCN Group, a charity, highlights the missed opportunity in failing to invest in the training of part-time workers, which could drive economic growth and address skills gaps. The report reveals that only 6% of part-time workers accessed vocational training, despite making up 26% of the workforce. NOCN Group calls for better access to training for part-time workers, recommending policies to support up-skilling and re-skilling through the Growth & Skills Levy and targeted funding.
Overcoming Apprenticeship Barriers to Boost Heat Pump Workforce
Nesta's report identifies challenges in the heat pump apprenticeship system, including financial investment and training quality. Addressing these barriers is crucial for increasing the number of skilled heat pump engineers and meeting the UK's net-zero targets. The report suggests innovative solutions to enhance apprentice uptake and grow the sector.
Generative AI Enhances Maths Education and Employability
Gatsby's report explores how generative AI can support collaboration between maths and vocational teachers. By embedding numeracy in vocational contexts, AI helps create teaching scenarios that link mathematical concepts to workplace tasks. This approach aims to strengthen learners' numeracy and make its relevance clearer, ultimately enhancing employability.
Study Shows School Mental Health Interventions Not Effective
A UK study funded by the Department for Education found that school-based mental health interventions, including the Youth Aware of Mental Health (YAM) and The Mental Health and High School Curriculum Guide, did not significantly improve students' mental wellbeing. Conducted between 2018 and 2024, the research involved secondary schools and demonstrated the potential negative impacts of structured mental health education on young people's overall wellbeing.
Calls for Overhaul of School Inclusion to Tackle Absenteeism
A new report from the Institute of Public Policy Research highlights the urgent need to prevent school absences and pupil disengagement, particularly among disadvantaged students. It recommends a whole-school inclusion approach, emphasising preventive funding, stronger leadership, community collaboration, and better progress measurement. Key proposals include reforming children’s services, ensuring schools reflect local communities, and revising performance metrics like Progress 8 to provide a more long-term and contextual assessment of student achievement.
Boys Falling Behind in Education, Facing Higher Economic and Social Risks
A new report from the Centre for Social Justice reveals that boys are underperforming at every educational stage, leading to long-term economic and social struggles. A lack of male role models and rising fatherlessness contribute to increased crime and mental health issues. Since 2020, the number of NEET young men has surged by 40%, compared to just 7% for women, with disadvantaged and ethnic minority boys hit hardest, deepening existing inequalities.
Youth Confidence Rises, But Financial and Job Worries Persist
The King’s Trust Youth Index 2025 shows an overall score of 70, the highest since 2017, reflecting improved happiness and confidence among 16-25-year-olds. While young people (aged 16-25 years old) feel secure in housing and relationships, financial worries remain a major concern, with many doubting they will ever own a home or achieve stability. In the West Midlands, job security fears and lack of skills weigh heavily on youth mental health, with many calling for more work experience and career support. No regional breakdown is provided in the Index.
Councils Lead Charge Against Health Inequalities
The Local Government Association's report showcases councils' innovative efforts to tackle health inequalities through the Marmot principles. Highlighting case studies from regions like Cheshire & Merseyside and Coventry, the report calls for national leadership to support local initiatives aimed at creating fairer, healthier communities.
Targeted Action Needed for ‘Mission-Critical’ Neighbourhoods
A new report by the Independent Commission on Neighbourhoods (ICON) and Oxford Consultants for Social Inclusion (OCSI) highlights the urgent need to focus resources on 613 ‘mission-critical’ neighbourhoods across England, where nearly a million people face severe economic and social challenges. The report warns against a broad, national approach and calls for targeted investment in social infrastructure, public services, and economic development. It urges the government to prioritise these high-need areas, particularly in the North and coastal towns, to drive real, lasting change. Only 6% of ‘mission critical’ neighbourhoods are located in the West Midlands region according to the report.
Good Home Hubs to Revolutionise UK Housing
Demos' latest report advocates for the implementation of Good Home Hubs, local one-stop shops for housing improvements. The study highlights the demand, costs, and financing required, emphasising the significant benefits for health, economy, and environment. The initiative aims to address the UK's housing crisis by improving existing homes.
WMCA Publishes report on the Economic Value of Bus
The West Midlands Combined Authority is striving to protect the bus network utilising funds from the Bus Service Improvement Plan and pursuing a franchised model, which would tailor the network to public needs and save money. However, these measures do not resolve the long-term funding issues the network faces. To support the case for ongoing support, the WMCA undertook internal research which provided a scope of impacts and then commissioned external qualitative and quantitative research to expand the evidence base. Find the report here.
SCALE Project Launches Self-Driving Shuttle Bus Service at NEC
The Solihull and Coventry Automated Links Evolution (SCALE) project has launched a self-driving shuttle bus service at the NEC. The first phase connects bp pulse LIVE Arena to VIP and blue badge parking, with delegates from various countries experiencing the ride. The trial is now open to the public, and the route will extend to link Birmingham International rail station to the NEC and Birmingham Business Park by summer. The project is led by Solihull Council and involves multiple partners.
Revitalising UK Rail: A Path to Inclusive Growth and Sustainability
Investing in the UK rail network can boost regional growth, economic opportunities, and tackle climate change. With the government set to reintegrate operations under Great British Railways (GBR), extend devolution deals, and develop a new transport strategy, there is a unique chance to revitalise the rail system, write the Green Alliance in their latest report. Key actions include making fares affordable, improving connections, and integrating transport modes, which will support passengers, communities, and the economy while promoting greener travel.
Addressing Transport Poverty: EU Must Boost EV Infrastructure and Accessibility
A new briefing by the Social Market Foundation, highlights the potential of electric vehicles (EVs) to reduce transport poverty across the EU, as they are already more cost-effective than petrol cars over time. However, slow deployment of public charge points is hindering adoption, particularly in Eastern Europe. The report calls for public-sector interventions to attract private investment, citing Norway’s self-financing infrastructure model and France’s EV leasing subsidies as examples of successful policies to expand access and affordability.
New research on the experiences of disabled people
Disabled people take 38% fewer trips than non-disabled people, a statistic that has remained unchanged for over a decade. Also, over 92% of disabled passengers face at least one barrier when planning or taking a journey. In early October 2024, a two-week discussion took place in the 'Keep WM Moving!' community, involving 308 members, many of whom were disabled. The focus was on the challenges people faced while traveling, with special attention paid to neurodivergent travellers. Challenges ranged from overcrowding, delays, cancellations, anti-social behaviour, station navigation, disembarkment, to out of order escalators. For neurodivergent travellers challenges included, readable information, confusing ticketing options, limited staff support and sensory overload with a lack of quiet space. Recommendations for transport improvements were made in the report.
Travel Trends & Behaviours Study (TTABS) Q2 July-September 2024
The WMCA’s Human Insight team carries out continuous surveys to monitor travel patterns in the last 7 days (from the date of the interview), opinion of different modes of travel and reasons for non-travel. Quotas are set for age, gender, district and car ownership. The latest reporting period is July- September 2024.
What did they learn?
- Car remains the main mode of travel over the last 7 days (63%), followed by walking (44%) and bus (38%).
- Metro (91%) and walking (89%) report some of the highest overall satisfaction levels.
- Car travel (53%) and bus travel (67%) were lower rated.
- A new question introduced this year focused on working practices – the results suggest that most workers are located at their workplace all the time (68%) – especially the young (88%) and non-car owners (87%). Only 12% worked remotely all the time. A mix of workplace and hybrid working accounted for 16% of workers overall - being most common amongst those aged 45-64 (24%).
- Furthermore, most hybrid workers did not see their work practices changing in the next 6 months (82%). However, over 1 in 10 thought they would travel into work more often, showing a continued trend towards a return to the office.
Historic Agreement Signed: West and East Midlands Mayors Unite for Regional Growth
The Mayors of the West Midlands and East Midlands signed an agreement to collaborate for regional benefits, reinforcing the Midlands' role in the UK's economy. At a venue in Coventry, they launched the West and East Midlands Compact, formalizing deeper collaboration between WMCA and EMCCA. Representing a £132.6 billion economy, 147,355 businesses, and 5.2 million people, the Compact prioritises clusters, FDI, transport, research, and leadership. This partnership aims to harness regional strengths, drive growth, and improve infrastructure.
Weak Oversight in Public Body Spending
A new report from Reform highlights weaknesses in government oversight of public bodies, which now account for 60% of day-to-day spending. It argues that departments lack clarity on their authority, while accountability mechanisms are underpowered and ineffective. With the government relying on these bodies to drive economic growth and key policy goals, the report calls for stronger oversight and clearer justification for creating new public bodies to ensure effective, responsive, and accountable public services.
Major Shake-Up in Local Government as Councils Face Reorganisation
The government is replacing 21 county and 164 district councils and inviting 19 small unitary authorities to propose reorganisation plans. Local leaders must establish strong political relationships, develop clear strategies, and coordinate transition efforts. The government must ensure funding clarity, maintain public services, and monitor the impact of reforms. A value-for-money review by the National Audit Office is recommended to assess the effectiveness of these changes and guide future reorganisations.
£315m Support for West Midlands Councils to Ease Budget Pressures
Five West Midlands councils, including Birmingham and Solihull, will receive £315m in borrowing and other support to protect services in 2025-26. Birmingham City Council's package is the largest at £180m. The Ministry of Housing, Communities and Local Government confirmed more councils requested exceptional financial support this year than ever before. Councils are instructed not to sell community and heritage assets to balance budgets. This support aims to prevent councils from issuing section 114 notices, though it is not a long-term fix.
Government Urged to Enhance Decision-Making Support for Mayoral Combined Authorities
A recent Institute for Government report highlights that while the government's plan to implement simple majority voting in mayoral combined authorities (MCAs) may expedite decisions, it must be accompanied by reforms to enhance capacity and accountability. Recommendations include increasing the mayoral capacity fund, conducting strategic staffing reviews, facilitating secondments, and establishing devolved public accounts committees to ensure effective governance in MCAs.
Strategic Authorities Key to Regional Growth
Reform's latest paper emphasises the need for effective Strategic Authorities to drive regional growth in England. It highlights the importance of improved decision-making, enhanced capabilities, and better governance structures to ensure these authorities can operate efficiently and support local innovation and community engagement.
Solihull Council Secures £9.6m for Innovative Town Centre Energy Network
Solihull Council has secured £9.6m financing from the National Wealth Fund (NWF) to deliver its town centre energy network, providing low carbon heating, hot water, and electricity to various buildings. The project, aligned with NWF’s clean energy mandate, aims to decarbonise the UK’s building stock. The first phase will serve public and private sector customers, with future phases connecting more buildings. Vital Energi will design, build, and maintain the network, supported by initial funding from HNIP and WMCA.
UK Industrial Strategy Should Embrace Green Industry
The Tony Blair Institute's report advocates for a robust UK industrial strategy focused on green industry. It highlights key areas such as innovation, economic openness, regional growth, and supply-chain resilience. The strategy aims to achieve strong, resilient, regionally balanced, and green growth, positioning the UK to capture significant global market value in green sectors by 2050.
UK Should Set Ambitious Carbon Budget for 2038-2042
The Climate Change Committee's Seventh Carbon Budget advises the UK government to limit greenhouse gas emissions to 535 MtCO₂e from 2038 to 2042, including international aviation and shipping. This ambitious target underscores the urgency of rapid action to meet climate goals.
WMCA Dashboard
Both the regional Business Activity Index and Future Activity Index ticked up in February. Since 2023, the West Midlands region’s total value in goods exports increased by £336m (+1.0%) to £35.3bn in 2024, while imports increased by £213m (+0.5%) to £42.7bn. Latest data shows that since January 2025, there has been a rise in claimant count of 4.3% in the WMCA area, while the UK increased by 5.1%. The youth claimant count also rose more slowly in the region at 3.6% compared to 4.7% for the UK. See the full WMCA Dashboard in the Annex.
Nationality of main applicants assessed as owed a prevention or relief duty by local authority
Latest data on the nationality of main applicants owed a prevention or relief duty, available on the WISE Data Profiler, shows a gradual increase in the proportion of non-UK nationals over the last five years. The WMCA will be exploring why this might be the case and welcomes insight from our community through Research@wmca.org.uk.
Number of publicly available electric vehicle charging devices per 100,000 population rises significantly over last five years
New data on the WISE Data Profiler shows the number of publicly available electric vehicle charging devices per 100,000 population in the WMCA area has grown by 825% from 113 in Q4 2019 to 1,045 in Q4 2024, reflecting a significant investment in this vital infrastructure.
The West Midlands Insights on Society and Economy (WISE) newsletter is a monthly publication by the West Midlands Combined Authority that sets out the social and economic trends that matter to the West Midlands. The newsletter contributes to our understanding of the economic conditions of the West Midlands, as part of the wider regional research and intelligence ecosystem. Further information is available on the West Midlands research and insights website at wmca.org.uk/research and previous issues are available at wmca.org.uk/wise.
This edition was prepared by Phillip Nelson, Victoria Tidy, and Alex Hunt, and incorporates commissioned content from the Economic Intelligence Unit (EIU).