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Top research and analysis insights for January 2025

UK poverty hits record high, new report reveals

The latest Social Metrics Commission data shows UK poverty at its highest in the 21st century, affecting 16 million people, including 5.2 million children. Poverty rates in England are highest in the West Midlands and London regions (27%) and lowest in the East of England (17%). Child poverty has surged to 36% across England, with the highest rate again being in the West Midlands region at 43%, marking a five percentage point rise since 2019/20. The findings precede the Poverty Strategy Commission's 2025 report, aiming to drive sustainable reductions in poverty. The report also aligns with the Department for Work and Pensions' development of new Below Average Resources statistics to guide future policy.

 

Government releases English Devolution White Paper

The UK government has outlined its most significant devolution plan this century, shifting power from Westminster to regional authorities. Key measures include mandatory Strategic Authorities across England, streamlined funding via Integrated Settlements, and expanded mayoral powers over transport, housing, and skills. Local councils will gain autonomy, with streamlined public service alignment and reorganised governance to boost efficiency. The reforms aim to spur growth, enhance accountability, and empower communities while addressing decades of local government decline. Further WISE Deep Dive briefing to follow.

 

Latest business expenditure on research and development data reveals jump for WMCA area

Data released in December by ONS showed an 8.0% rise in business expenditure on research and development in the WMCA area between 2022 and 2023. This contrasts to a UK-wide average of +2.9% and to other combined authority areas such as Greater Manchester, where expenditure fell by 13.0%. Comparative data only extends to one year, and figures appear volatile, so time will tell if this reveals a longer-term upward trend for the region, or regular noise.

 

Resolution Foundation critiques UK’s Invest 2035 Strategy

The Resolution Foundation’s response to the UK Government’s Invest 2035 Green Paper highlights its emphasis on growth and decarbonisation but flags unclear goals for regional growth and economic security. It warns that targeting high-growth sectors could widen regional inequalities and urges sharper policy instruments and robust industrial data. The report supports establishing an Industrial Strategy Council but calls for greater resources and authority to ensure effective oversight and policy impact ahead of the forthcoming White Paper.

 

Call for sweeping reforms to decentralise and innovate English public services

A new report by DEMOS urges a shift in English public service governance through enhanced devolution, integrated local accountability, and long-term funding. Key recommendations include creating reform units, empowering combined authorities with greater service control, introducing mission-based metrics, and fostering workforce respect. Proposed innovations, such as Total Place+ budgets and experimentation zones, aim to address systemic challenges like centralisation, fragmentation, and workforce morale. These measures seek to liberate public services and improve outcomes across England.

Treasury launches office for value for money to curb public spending waste

The Chancellor has announced the creation of the Office for Value for Money, aiming to maximise public spending efficiency amid rising debt and tax burdens. Tasked with addressing waste driven by cross-cutting challenges, the Office will focus on automation, AI, workforce performance, procurement, and infrastructure. A new paper, The Price of Everything, published by Reform, outlines priorities and calls for an advisory group to integrate external expertise, guiding reforms ahead of the 2025 Spending Review.

 

Government’s growth milestones aim to raise living standards but may lack ambition

The UK government’s updated growth milestones prioritise raising real household disposable income (RHDI) and GDP per capita, including targets for regional equity. While this shift rightly emphasises living standards, a Resolution Foundation report highlights the goals as unambitious, noting RHDI has grown in every Parliament since 1955. Concerns persist about stagnant incomes for low-to-middle-income families. Experts urge complementary policies to ensure growth benefits are widely shared, particularly amid forecasts of falling living standards for poorer households.

 

Mansion House Reforms: Unlocking pension power for local impact

The UK Government’s Mansion House reforms aim to consolidate pension schemes into larger funds to boost investments in infrastructure and local communities. This approach aligns with Place-Based Impact Investing, which addresses specific local needs to foster resilience and sustainable development. While reforms encourage local engagement, experts at The Good Economy warn against overshadowing smaller-scale, community-focused projects. Success hinges on clear communication, diverse investment ecosystems, and robust impact measurement frameworks, with the potential to transform communities and drive sustainable growth nationwide.

 

Midlands Engine report highlights regional growth and resilience

The 2024 Midlands Engine State of the Region report delivers an evidence-based analysis of the Midlands' economy. Highlighting challenges like productivity gaps and workforce needs, it celebrates regional collaboration, including new investment campaigns and SME innovations. A refreshed Observatory website enhances access to interactive data. The report underscores priorities like boosting investment, fostering innovation, and driving sustainable growth. A key forecast  for the year ahead is growth of 0.7% in the West Midlands region, while the East Midlands is estimated to grow by 0.9%.

 

The Midlands: Leading the UK’s clean energy transformation

A new collaborative roadmap published by the Midlands Engine highlights actions to advance clean energy systems, efficiency programs, and new technologies. The Midlands is driving the UK’s clean energy revolution, leveraging its industrial strength and innovation to enhance energy security, resilience, and sustainability. Key priorities for the future include scaling renewable projects, upgrading infrastructure, fostering workforce development, and expanding supply chains. The Midlands should aim to partner with policymakers to secure an independent, resilient energy future, supporting net-zero ambitions and delivering significant economic growth and jobs for the UK.

 

techUK launches Local Digital Index to boost UK’s regional growth

The 2024-2026 techUK Local Digital Index, developed with BT Group, provides detailed insights into the UK’s digital economy, contributing £99 billion annually and employing 1.7 million people. With data now mapped at the local authority level, the tool highlights regional successes, fostering smart Local Growth Plans. This initiative aims to leverage digital innovation across sectors like green industries and advanced manufacturing to drive UK-wide economic progress. The release includes a deep dive on the WMCA area, which it reports, excels in digital economy growth, focusing on infrastructure, skills, innovation, sustainability, and strategic industry collaboration.

 

CBI blueprint urges UK to harness economic shifts for growth

The UK faces transformative challenges, but the Confederation of British Industry’s (CBI’s) Blueprint for Competitiveness highlights opportunities to lead the G7 in growth by leveraging five key economic shifts: capital market development, net-zero investments, labour market evolution, AI adoption, and balanced trade policy. It calls for a modern industrial strategy prioritising innovation and sustainability, with the 2025 Spending Review as a catalyst for private investment. Collaboration between government and businesses is critical to building a resilient, competitive economy. At the regional level, it recommends capitalising on the existing sector strengths such as Professional and

Financial Services, Technology and Creative Industries, and Automotive and Advanced Manufacturing in the West Midlands region.

 

CBI report calls for stronger business-government partnerships to boost resilience

The CBI’s latest report, Strengthening the UK’s Economic Resilience, urges closer collaboration between business and government to address systemic risks, build operational resilience, and align growth with security goals. Key priorities include clear government guidance on risks, a formal decision-making model, and a cross-sector resilience committee. The report advocates public-private partnerships, expanded training and funding solutions, and improved risk communication. These measures aim to fortify the UK economy against future shocks and enhance competitiveness. No regional breakdown or recommendations are made.

 

In the blink of an AI: Clearing the backlog in UK public services

A publication by the Social Market Foundation highlights the transformative potential of AI and automation in improving user-facing workstreams within Britain’s civil service. Drawing on case studies of technologies like AI-powered triaging systems, chatbots, voicebots, and OCR scanning, the report estimates significant time savings for both civil servants and the public. For instance, automating calls and appointments at the DWP and HMRC could save over 8.12 million hours annually, while AI triaging in GP practices has reduced patient waiting times by 73% and peak-hour calls by 47%. Similarly, AI could streamline paper-based processes at the DVLA, addressing delays in medical licensing. These advancements promise faster service delivery, reduced backlogs, and improved public satisfaction.

 

Universities enhanced civic role at the heart of national prosperity

A report by Lloyds Banking Group and PwC explores the role of universities in driving economic growth and securing financial sustainability, highlighting their contributions to local and regional prosperity. In the West Midlands, universities play a significant role through initiatives like the Birmingham Anchor Network, compromised of the University of Birmingham and Aston University, which collaborates on procurement, employment, and asset management to drive regional growth. The Midlands pan-regional inward investment campaign involves all 17 Midlands universities, 65 local authorities and both Mayoral Combined Authorities, aiming to attract foreign direct investment into regional innovation activities. Both are hailed as examples of good practice.

 

WMREDI programme reviews impact on West Midlands’ workforce and labour market

The West Midlands Regional Economic Development Initiative (WMREDI) has left a lasting impact on the region, addressing skills gaps and labour market challenges. The programme reduced economic inactivity, strengthened digital expertise, improved graduate retention, and aligned workforce capabilities with industry demands. Projects like Connecting Communities and the Digital Skills Innovation District enhanced employment opportunities and fostered innovation. By advancing a resilient and adaptable labour market, WMREDI set a benchmark for regional economic development and long-term prosperity.

Social enterprises drive economic and social impact in West Midlands

According to Social Enterprise UK estimates, the West Midlands' 10,500 social enterprises generate £2bn in turnover and support 67,000 jobs, contributing 2% of regional GDP. Over 60% of survey respondents report profitability, reinvesting 80% of profits into social missions. With a diverse workforce and leadership, these enterprises excel in innovation, environmental goals, and education services. Support from the Birmingham & Solihull Social Economy Consortium and £2.5 million in investment has enhanced collaboration and growth, fostering a robust social economy despite financial barriers.

 

Review finds progress and gaps in social investment market reforms

A new review of the Social Investment Commission's recommendations reveals progress in addressing structural issues like regional finance disparities but raises concerns about government strategy, market institutions, and access to funding for social enterprises. No further recommendations are made to achieve missed goals in this review.

 

Inequality control: Why wealth inequality has not increased while asset prices have soared

A Resolution Foundation report examines the stability of wealth inequality in Britain despite the turbulent 2020s, characterised by volatile asset prices, high inflation, and shifting savings patterns. While overall inequality has remained stable, gaps between age groups have widened—older generations have amassed significantly more wealth, while younger groups have lagged. In the 2020s, declining aggregate wealth narrowed some gaps, with those in their 60s experiencing a 16% drop in median wealth and those in their 30s seeing a 17% rise. However, inheritances remain a major force shaping the wealth landscape, with their real-term value still far higher than two decades ago, highlighting the need for policies addressing Britain’s uneven wealth distribution.

 

Job satisfaction and progress barriers for low-income workers

A report from the Resolution Foundation’s Unsung Britain programme reveals improved employment rates for low-to-middle income families but persistent job insecurity and satisfaction gaps compared to wealthier households. Despite rising median pay and reduced workless households, concerns remain over low wages, insecure contracts, and poor management. Financial barriers, including high marginal tax rates, deter job changes and progression. Provisions in the Employment Rights Bill could help, but employers are urged to improve workplace respect and management quality. No regional breakdown is provided in the analysis.

 

Up to 300,000 children missing from education in England

A new Education Policy Institute report reveals that up to 300,000 children in England are missing from education, a 40% rise since 2017. In 2023, Birmingham local authority area had the highest numbers of children not in school in England. Contributing factors include off-rolling, mental health challenges, and lack of tracking for children who leave school rolls. The report calls for an integrated national register, mandatory recording of pupil removals, and improved population estimates. It urges research into best practices for preventing disengagement and supporting vulnerable students to address this growing educational crisis.

 

Innovation Generation: A new vision for social mobility

A report by the Social Mobility Commission redefines social mobility, emphasising diverse, localised approaches over one-size-fits-all solutions. Highlighting persistent barriers to opportunity, it stresses the role of economic growth, innovation, and skills alignment with local employment. The report critiques traditional focus on university pathways, advocating for robust vocational options and support for non-graduates, particularly in disadvantaged regions like post-industrial, coastal, and rural areas. This place-based strategy aims to broaden opportunities and address geographical disparities in social mobility outcomes.

 

Night work lessons: Insights from London’s after-dark economy

According to a new Living Wage Foundation report, London’s night workforce—one in four workers—faces significant challenges, including low pay, job insecurity, and unpredictable hours. With nearly 18% earning below the Living Wage and many receiving short-notice shifts, these findings highlight systemic issues in the nighttime economy. Lessons from London suggest a need for better pay, stable contracts, and improved worker protections, offering a blueprint for addressing similar challenges in other regions where night work is vital to local economies and cultures.

 

Urgent reforms needed to address hardship among disabled benefit recipients

Disabled individuals on work-related disability benefits face severe hardship, with high levels of deprivation despite additional financial support. According to a new report by the Joseph Rowntree Foundation (JRF), the government must improve benefit adequacy and enhance employment support. Proposed reforms include a "Work Transition Guarantee" to reduce risks of job attempts, increased trust in the system, tailored employment support, and better communication of benefit rules. Structural and cultural barriers, including fears of losing benefits and inadequate job adaptability, must also be addressed to foster economic security.

 

Bangladeshi, Black African and Pakistani households at higher risk of very deep, long-term poverty

A new JRF report examines the heightened risk of deep and persistent poverty among Bangladeshi, Black African, and Pakistani households compared to white households in the UK. People in these groups are three times more likely to enter very deep poverty—defined as incomes far below the poverty line—each year and at least four times more likely to experience persistent very deep poverty, enduring it for at least three out of four years. Nearly half of children in Bangladeshi and Black African households face very deep poverty in at least one year out of four. Factors contributing to this disparity include family structure, housing situations, and work-related circumstances, such as pay, job security, and changes in employment or housing costs. The paper explores how these factors amplify the risks for these communities. No regional breakdown is provided.

 

Does hybrid working always increase equality and inclusion?

The complexities of hybrid working are explored in an article by Warwick Business School (WBS), highlighting both its benefits and challenges for inclusion and equality. While hybrid arrangements can enhance productivity, support neurodivergent employees, and improve gender equality by offering flexibility, they may also reinforce social inequalities and leave some under-represented groups—such as disabled workers or members of the LGBT community—feeling isolated or unsupported. Business consultant Lizzie Penny advocates for autonomous working as a better alternative, emphasising trust-based cultures that allow employees to choose where and when they work. This approach, she argues, moves beyond outdated structures, fosters genuine inclusion, and unlocks greater potential for innovation and collaboration across diverse teams.

New export support programme boosts West Midlands’ businesses

The WMCA has awarded £632,000 to support small businesses in Coventry, Birmingham, Solihull, and the Black Country in expanding overseas. Delivered by regional Chambers of Commerce, the programme offers expert export advice, workshops, and events for manufacturers and service providers. Targeting key industries, it aims to enhance business resilience, productivity, and innovation while driving regional economic growth.

 

West Midlands launches supply chain growth initiative

A new programme, funded by the UK Shared Prosperity Fund, aims to boost West Midlands' economic growth by enhancing supply chain innovation in sectors like health tech, housing, and smart energy. Spearheaded by regional leaders and the WMCA, the initiative includes workshops, coaching, and networking with major buyers to help businesses secure lucrative contracts. The first event, on December 10 in Birmingham, targeted opportunities in public and private procurement to drive local growth and high-quality job creation.

 

Network failure: How the UK can meet its 5G ambitions

A report by the Social Market Foundation calls for a "new deal for 5G" to address the UK's significant 5G infrastructure investment gap, estimated at £20–£37 billion, and improve its global ranking in 5G availability (30th) and quality (37th). Key issues include declining revenues for mobile network operators, limited demand for 5G services, complications from wireless infrastructure providers, costly spectrum licensing, limited land availability for infrastructure, and inefficiencies in the planning system. The report recommends measures such as increased public sector involvement to stimulate demand, reevaluating market structures, replacing spectrum auctions with investment guarantees, reforming the Electronic Communications Code, and overhauling the planning system to build a robust, high-quality 5G network and unlock its economic and social benefits. The Infrastructure Accelerator in the West Midlands 5G project is hailed as an example for the rest of the UK to follow.

 

Insight from innovation state of the nation survey

In a paper by Innovation and Future Competitiveness (IFC), findings from the UK Innovation Survey (UKIS) and the Innovation State of the Nation Survey (ISNS) highlight a concerning decline in innovation activity among UK firms. The UKIS data, covering 2012–2022, shows a downward trend in the proportion of innovation-active firms, with a widening gap between larger firms and SMEs. The ISNS data for 2023–2024 reinforces this trend, indicating further declines across key innovation metrics. With insights from around 14,000 companies, these surveys provide a robust view of long-term innovation trends, underscoring the urgent need for strategies to address falling innovation levels across UK businesses. In the West Midlands region, product innovation rose from 2023 to 2024, while service and process innovation rates fell.

Regional partners join forces to support the growth of creative sectors

The CreaTech Frontiers collaboration, led by Birmingham City University (BCU) and also includes Coventry University, the University of Birmingham, and The University of Warwick, has joined forces with the Royal Shakespeare Company to lead a £6.75m project to support the growth of creative sectors across the region. The scheme focuses on developing the region’s micro and small and medium-sized businesses who work in creative technologies like video games, virtual production and immersive reality.

 

West Midlands Business Summit unlocks £20m in funding opportunities

Entrepreneurs at Birmingham's Business Funding Summit learned how to access over £20m in funding with expert advice on investment readiness, operations, and team-building. Hosted by Oxford Innovation Advice, the event featured founders and financial experts emphasising robust foundations, shared values, and open communication. With £24m in future investment potential, the summit highlighted the West Midlands' commitment to fostering business growth through programs like the Business Growth West Midlands Investment Readiness initiative, funded by the UK Shared Prosperity Fund.

 

Get Well Soon secures £400k investment boost to expand healthcare services

Get Well Soon, an online healthcare platform which was the first recipient of the West Midlands Co-Investment Fund, has secured an additional £400,000 boost. A £201,000 follow-on investment from the West Midlands Equity Co-Investment Fund has been matched by £201,000 from the Midlands Engine Investment Fund. Get Well Soon plans to expand its range of procedures and roster of clinicians.

Labour force headlines

Latest data showed the total claimant count rose by 0.5% in the WMCA area from October to November 2024 (UK: 0.2%). The number of claimants as a proportion of residents aged 16-64 years old was 8.1% compared to 4.2% for the UK in November 2024. Across the Combined Authorities, the WMCA had the highest rates, West Yorkshire Combined Authority was the second highest at 5.6% down to 2.1% for York and North Yorkshire Combined Authority.

 

Latest data showed the youth claimant count rose by 3.0% in the WMCA area from October to November 2024 (UK: 2.6%). The number of claimants as a proportion of residents aged 18-24 years old was 9.5% compared to 5.4% for the UK in November 2024. Across the Combined Authorities, the WMCA had the highest rates, Tees Valley Combined Authority was the second highest at 7.9% down to 2.8% for both York and North Yorkshire Combined Authority and West of England.

 

Flawed Labour Force Survey delay could mislead UK policymakers until 2027

The Office for National Statistics (ONS) faces delays in replacing its unreliable Labour Force Survey (LFS), now expected by 2027. Falling response rates have undermined the LFS, potentially miscounting up to 930,000 workers. The delay complicates key policymaker decisions, including tracking employment impacts from regional and local decisions. Efforts to improve the survey's accuracy include shorter questionnaires and reweighting data, but challenges persist.

 

Key Stage 4 performance 2024

GCSE results for pupils at the end of Key Stage 4 in state-funded schools highlights the WMCA’s performance is broadly in line with the national performance:

  • In the WMCA area 21% of pupils achieved grades 5 or above in English and Maths GCSEs, compared to 22% nationally
  • In the WMCA area 31% of pupils achieved grades 4 or above in English and Maths GCSEs, the same as nationally
  • In the WMCA area 48% of pupils achieved any passes at GCSE or equivalent, higher than the national figure of 46%

 

Survey of adult skills 2023

A survey led through OECD estimates 8.5 million working age adults in England had low basic skills (low proficiency in literacy or numeracy or both). Meanwhile, 37% of workers in England are overqualified for their current role in England, compared to 23% across other OECD countries, with overqualified workers’ wages being on average 18% lower than peers with similar levels of educational attainment in well-matched jobs. The research found the lowest levels of basic skills in the West Midlands region.

 

Developing a theory of change for a future national collaborative outreach programme

A report by the Office for Students outlines the development of a theory of change for a future national collaborative outreach programme in England, aiming to improve take-up and accessibility of higher education. Key points include:

  • Ambition for OfS to serve as central source of support, resources and best practice to allow regional resources to be more focussed
  • Need for regional coordination connecting higher education providers within each region to maximise collective impact and address regional gaps
  • Priority projects that engage with the most underserved students through early, persistent, and consistent interventions
  • Call for a multi-year funding approach emphasising the important of collaboration, evidence-based practice, and alignment with regional economic needs
  • Need for a consistent framework for evaluation and the potential for a national brand to support these efforts

 

Boosting apprenticeships in skilled trades: support for SMEs

A new report by the Social Market Foundation (SMF) highlights barriers SMEs face in hiring apprentices for skilled trades, essential for projects like building 1.5 million homes in five years. Key challenges include weak links with training providers, generational attitudes, and administrative costs. Recommendations include creating a cohesive apprenticeship network, increasing incentive payments to £3,000, and launching a national awareness campaign. Strengthened support aims to address declining youth apprenticeship rates and meet growing demand for skilled trades.

 

The government’s 80% employment rate target: lessons from history and abroad

An article by the Institute for Fiscal Studies (IFS) explores the government’s "Get Britain Working" white paper, aiming for an 80% employment rate among 16-64-year-olds by adding 2.2 million workers. Challenges include rising health-related inactivity, geographic disparities, and low employment among younger (15-24) and older (55-64) workers. Lessons from countries with higher employment rates highlight the importance of supporting these groups through vocational education, health interventions, and addressing early retirement. While government policies target these areas, limited funding and external factors like economic shocks could hinder progress.

 

From backwater to battleground: The political importance of joined-up immigration and skills policy in the UK

A briefing by the SMF examines the Labour government’s push for a joined-up immigration and skills policy to address perceived overreliance on international labour, though it is unlikely to significantly reduce immigration due to the government’s growth objectives. Politically, however, the approach could succeed if effectively communicated as a strategy to supplement and support local skills rather than replace them. Public attitudes towards immigration are conflicted, with resentment arising when it appears to disadvantage local workers. The report highlights the untapped potential of the Immigration Skills Charge in addressing these concerns and notes that this issue is becoming a key political battleground, influencing governance and electoral outcomes.

 

Urgent action needed to support workers in declining occupations

With 12 million UK workers in declining occupations, the Skills Imperative 2035 report published by the National Foundation for Education Research outlines ten recommendations for smoother transitions into growth sectors. Key proposals include boosting public investment in adult education, incentivising employer skills training, enhancing career retraining guidance, and aligning housing and transport policies with skills demands. Expanding access to free level 3 courses in the WMCA area was hailed as an example of good practice that could be replicated elsewhere. At the same time, employers are urged to strengthen workforce planning, while education providers should tailor flexible training for adults. These actions aim to address critical labour market shifts and secure future workforce resilience.

 

Midlands launches regional hub to tackle nuclear skills shortage

The Midlands Regional Hub for Nuclear Skills, launched at the University of Derby with Rolls-Royce as sponsor, aims to address the UK’s nuclear skills gap. Part of the National Nuclear Strategic Plan for Skills, the hub will support the sector’s goal of creating 40,000 jobs by 2030. It will connect local stakeholders to foster collaboration, regional growth, and career opportunities in nuclear energy, engineering, and green technology, ensuring alignment with national security and energy goals.

UK obesity crisis: Lessons from leaders on driving change

A report by Henry Dimbleby and Dr Dolly van Tulleken, supported by Nesta, draws on interviews with UK political leaders to understand how politicians can address the rising obesity crisis, costing £98bn annually. It highlights past policy failures and offers guidance for effective food policy reform, urging bold, swift action, unified government efforts, and compelling public narratives. Despite challenges like industry lobbying and fragmented governance, the report emphasises optimism and the potential for transformative change in tackling obesity.

 

Health in cities report 2024

A report by the Department of Health and Social Care examines the health of core cities in England. The report highlights that while cities offer opportunities for active lifestyles through infrastructure, they also have higher rates of sedentary behaviour and unhealthy food environments. And although they also generally have better access to specialised healthcare services, high population density can strain these resources. The report calls for coordinated efforts to improve urban health, emphasising the need for tailored solutions to address the specific needs of city populations. The report uses Birmingham as a case study, demonstrating Birmingham’s potential to respond to challenges through a deep understanding of communities, co-designing solutions and considering health in the broadest of contexts in a whole system approach.

 

England's particulate matter pollution falls, but inequalities persist

Particulate matter (PM2.5) levels in England dropped 54% from 2003 to 2023, with nearly all areas now meeting the 2040 target. However, 96% of the population still lives above stricter WHO-recommended limits. Lower-income areas face 8% higher pollution levels, while ethnic minorities’ exposure remains 6% higher than white populations, despite significant reductions. Key drivers include transport, domestic woodburning, and industry. Air quality gains, partly due to COVID-19, highlight the need for continued efforts to tackle health and equity impacts writes the Institute for Fiscal Studies.

Government launches National Planning Policy Framework

The UK Government aims to address the housing shortage by building 1.5 million homes over five years, focusing on unaffordable areas and city regions. Local councils face increased targets, with brownfield and "grey belt" land prioritised for development. Councils must ensure affordability and provide infrastructure. Concerns over green belt erosion, planning system capacity, and labour shortages persist, with 225,000 construction workers needed by 2027. Long-term empty homes remain a separate challenge. Find the full National Planning Policy Framework here.

 

Planning, policy, and potential: Restarting England's housebuilding goals

According to the Centre for Cities, England's housing targets face systemic challenges. Private sector reforms fall short of the 1.5M homes goal without bold zoning changes or green belt adjustments. Public housing, undermined by decades of underfunding and reliance on private developers, requires a generational investment of £16.6bn annually. Land value capture offers £193bn potential for urban expansion but hinges on green belt reallocation. A trio of reports call for flexible planning, targeted investments, and public land assembly to meet affordability and infrastructure needs.

 

Building support for affordable housing

A report by the Joseph Rowntree Foundation highlights the urgent need for affordable homes in the UK and offers practical communication strategies. Recommendations include framing housing as a shared moral responsibility, clearly explaining the limits of brownfield and empty homes, and emphasising benefits like community health and stability. Advocating for well-designed developments on appropriate greenbelt land is also crucial. By addressing misconceptions and fostering collective responsibility, the report aims to bolster support for inclusive housing initiatives.

 

How do we regenerate former industrial communities?

Arup has called for a holistic approach to industrial regeneration, emphasising sustainable economic opportunities, community engagement, and integration with nature. Their projects, such as the transformation of Manvers in South Yorkshire and Battersea Power Station, demonstrate how repurposing industrial sites can address housing needs, enhance biodiversity, and align with climate resilience goals.

 

Housing outlook Q4 2024

The final Housing Outlook of Q4 2024 highlights the pressing issue of child poverty driven by high housing costs, particularly in the private rented sector (PRS). Currently, 1.1 million children in the UK live in households pushed below the poverty line by housing costs, with the PRS accounting for 670,000 of these cases. Repegging Local Housing Allowance (LHA) to the 30th percentile of local rents could lift 75,000 children out of poverty by 2029-30 at a cost of £1.8 billion, while aligning it with the 50th percentile could help 130,000 children at a cost of £3.1 billion. Long-term investments in social housing and policies to curb private rent growth could significantly reduce these costs while improving living conditions. Additionally, housing reforms would alleviate overcrowding and inadequate housing conditions, which affect educational and health outcomes for children in poverty. The report emphasises that comprehensive housing and income policy reforms are essential to effectively tackle child poverty in the UK.

Integrated National Transport Strategy

The Department for Transport has put out a call for idea to help develop a strategy to a high-level direction on how transport should be designed, putting people at its heart and empowering local leaders to deliver integrated transport solutions that work for local communities.  Further information is available here, with a deadline of 11.50pm on 30 January 2025.

 

Breadth of travel amongst bus users

TfWM’s Data Insight team have investigated the ‘breadth of travel’ (how many different bus services users use) interrogating 2023 data from our region’s ticketing solution – Swift. The research showed that overall, a typical bus customer uses an average of 9 bus services over the course of the year with the middle number of services being 5 and most popular being just 1 service. This differed between concessionary (i.e. subsidised ticket users) and commercial travellers. Concessionary travellers tended to use fewer bus services with an average of 8, middle value of 4 and most commonly 1, while commercial customers tended to use an average of 10, middle value of 7 and most commonly 3 services.  More information can be found in the Quarterly Research Paper Issue 16.

 

Public perception of bus franchising

The WMCA Human Intelligence Team carried out a community discussion in June 2024 to explore West Midlands’ residents’ understanding and perceptions of bus franchising, their priorities and expectations, and what impact it would have on them. 257 members participated in the research.  Results showed that 59% believed bus franchising will improve current network issues and 40% think there would be a greater sense of pride in the network if it was publicly controlled. 34% would be more likely to catch bus services should a franchising model be implemented.  For more information see Quarterly Research Paper Issue 16.  TfWM have now launched its formal bus consultation at https://www.tfwm.org.uk/bus-reform.

 

UK falls behind in EV readiness amid slowing sales growth

The UK is slipping in EV readiness, ranking joint 11th in PwC’s 2024 Global eReadiness Index (no UK regional breakdown is given). Despite growing interest, adoption in the UK is hindered by limited affordable models and scaled-back government subsidies. While 65% of UK buyers plan to purchase an EV within five years, concerns about cost, range, and recharging persist. Encouragingly, the October 2024 Budget introduced measures to expand charging infrastructure and incentivise EV ownership, aiming to address market challenges and revive growth.

 

Study highlights unplanned traffic disruptions in West Midlands

The TfWM Data Insight team worked with master’s student, Yihang Bai, through a Consumer Data Research Centre funded grant to examine the spatial and temporal dynamics of traffic disruptions, analysing 2023 data. The A MOB.SCI.LAB study research reveals significant spatial and temporal variations, with densely populated and high-traffic areas experiencing worse congestion. It highlights how peak travel times and seasonal changes exacerbate disruptions, emphasising their impact on urban mobility and local economies. The findings aim to inform adaptive traffic management strategies to build resilient transport systems and mitigate disruption-related challenges effectively.

Devolution and urban regeneration: How can metro mayors transform England’s towns and cities?

A report by the Institute for Government, supported by Balfour Beatty, highlights the critical role of urban regeneration in achieving the UK’s economic growth targets, reducing regional inequality, and supporting climate objectives. It examines how metro mayors are central to driving regeneration through powers such as allocating funds, setting strategic directions, and partnering with the private sector. With further devolution and new mayoralties on the horizon, the report draws lessons from six case studies (all outside the West Midlands) and stakeholder interviews to guide mayors in leading regeneration efforts and outlines how central government can better support their initiatives.

 

Devolution: the importance of scale and coterminosity

A policy brief from The Productivity Institute highlights the need for a strategic vision to guide England’s incremental devolution process, which has focused more on deal-making than long-term governance. The Labour government has made progress by fostering partnerships with combined and local authorities, establishing a Council of Mayors and other collaborative bodies, and integrating devolution with national growth missions. Initiatives include granting Greater Manchester and the West Midlands more funding flexibility and inviting authorities to submit Expressions of Interest (EoIs) for future governance arrangements. However, with much of England still outside devolution’s reach, achieving alignment between identities, economies, and political geographies is crucial for fostering balanced economic growth and avoiding underpowered or poorly aligned combined authorities.

 

ONS highlights progress in local data innovation at subnational data conference

The Subnational Data Conference, hosted by the ONS, spotlighted progress in enhancing local data for informed decision-making. Key achievements include the development of the Explore Local Statistics service and the ONS Local advisory team, which address evidence gaps and prioritise local needs. Discussions emphasised the role of devolved decision-making and the value of collaboration in fostering local growth. The event underscored the importance of networking, with plans to repeat the conference and refine subnational strategies in the coming year.

 

England’s devolution divide: Governance gaps widen regional inequality

A study on England's efforts to address spatial inequality reveals a "devolution periphery" in the east and west, lagging in both governance and productive capacity. This contrasts with a governance core in the north and a productive core in the south, with Greater London excelling in both. Comparing England to France, Germany, and Italy, the paper highlights risks and failures in addressing inequality. Without stronger governance and productivity measures, the periphery risks falling further behind.

 

Reforming English council funding: Urgent overhaul needed for fairness and efficiency

Despite funding increases since 2019, English councils face financial pressure with funding per resident 19% below 2010 levels. Arbitrary funding allocations exacerbate inequalities and inefficiencies. A reformed system, emphasising transparent assessments of spending needs, fair revenue distribution, and alignment with policy goals, is essential. The government aims to introduce a new funding system by 2026, focusing on socio-economic equity, local flexibility, and clear national standards. Long-term clarity and devolution decisions are critical for sustainable improvements writes the Institute for Fiscal Studies.

 

Bread and roses: Making the case for cultural funding

In an article by Warwick Business School (WBS), the Joint Cultural Needs Assessment (JCNA) is highlighted as a strategic, evidence-based tool to help local authorities secure funding for culture amidst financial pressures. By aligning cultural initiatives with health, wellbeing, and economic priorities, JCNA demonstrates the value of cultural investment. Successful examples, like Coventry’s City of Culture plan, showcase its impact in creating lasting community benefits and strengthening the case for culture as essential to local development.

Birmingham opens hydrogen vehicle training facility to meet industry demand

South and City College Birmingham has launched a £1.5m hydrogen vehicle training facility at its Bordesley Green campus to equip engineers with skills to maintain hydrogen-powered fleets, including buses and refuse lorries. Developed with Faun Zoeller’s Enginius division, the centre features industry-standard equipment and offers IMI-accredited courses. The initiative aims to upskill the workforce, support young learners, and promote hydrogen technology adoption, enhancing sustainability and job creation in the West Midlands automotive sector.

 

Reducing interest rates for clean energy investments

The New Economics Foundation (NEF) reports that fossil fuel prices drove three-quarters of the 10.4% CPI inflation in February 2023, exposing the limitations of interest rate hikes in addressing such shocks. It proposes a Term Funding Scheme for Energy Price Stability (TFSEPS) to provide low-interest loans for clean energy projects, boosting renewable energy, reducing fossil fuel reliance, and lowering electricity bills. NEF estimates this could save £29 billion in electricity costs by 2045, cutting household bills by £24 annually.

 

The case for a nuclear renaissance

A new era for nuclear power is emerging as global leaders recognise its critical role in addressing climate change, ensuring energy security, and reducing costs, writes the Tony Blair Institute for Global Change. Historical opposition to nuclear energy, driven by overestimated fears stemming from accidents at Chernobyl and Fukushima, diverted focus to coal and gas, leading to higher emissions. Had nuclear deployment continued at ambitious levels, global CO2 emissions could have been significantly reduced. Nuclear energy’s safety record and potential to integrate with renewables make it indispensable for a clean energy future. Political leaders now have the opportunity to embrace nuclear power based on evidence, accelerating the transition to a sustainable energy system.

 

A call to action: Closing England’s nature access gap

According to a new Onward report, access to nature across England remains deeply unequal, particularly in eastern regions and urban areas. Disparities also disproportionately affect ethnic minorities, young people, and deprived communities, despite the significant health, economic, and social benefits greenspaces provide. The Wildlife and Countryside Link’s report proposes solutions including a North Sea National Trail, better funding for public access on farmland, integrating greenspace into urban planning, and initiatives like "prescribing parks" through the NHS. Bridging this gap is vital for well-being and biodiversity. In the West Midlands, recent WMCA grants programmes have increased access to green spaces for c.20% of the population, mostly in the most deprived parts of the region.

 

Woodburning drives PM2.5 pollution surge in West Midlands

Woodburning contributes 20% of PM2.5 pollution in Birmingham and the West Midlands, with winter concentrations reaching up to half of total levels, a University of Birmingham study reveals. The sevenfold rise since 2008 heightens health risks, including respiratory and cardiovascular diseases. Researchers urge immediate action, such as stricter smoke control enforcement, public awareness campaigns, and adoption of cleaner heating alternatives. The findings underscore the need for local, national, and international measures to curb woodburning-related pollution.

Regional export growth slows amid UK-wide economic stagnation

Latest data on regional exports showed a value of £35.4bn on the year to September 2024. This was the same as the previous two quarters and potentially reflects resilience among the region’s exporting companies amid a wider national economic downturn toward the end of 2024. The impact of the downturn was also evident in the number of payrolled employees in the region falling to levels not seen since this time last year. For this and more, see the WMCA Dashboard in the annex.

 

Latest data reveals problem of persistent absenteeism from school not going away

Data for the year 2022/23 showed very similar rates of persistent pupil absenteeism (missing at least 10% of classes) to the previous year. Rates have jumped since the pandemic to around 19% for primary pupils to 23% for secondary pupils – up from 11% and 14% respectively. See more on the WISE Data Profiler.

 

Uneven claimant rates across the WMCA area

The Employment, Skills, Health & Communities Insights Dashboard’s breakdown of claimant rates across the WMCA area shows that the highest overall rates are in Birmingham, but the highest youth rates are in Wolverhampton.

 

Recycling rates declining across England

The Environment and Net Zero data dashboard shows that recycling rates have been declining across England over the last ten years, with the West Midlands region going from 42% of household waste being recycled to 38%.