Priming the engine: opportunity in the West Midlands, and how to make the most of it 

The UK’s top destination of Foreign Direct Investment outside London is also the region which has recorded the highest annual growth rate in the UK since 2022: the West Midlands. So why are firms flocking there, and how can the region capitalise on this opportunity? 

It’s an exciting time for the West Midlands. The Trailblazer Deeper Devolution Deal has secured a huge transfer of power and responsibilities in housing, regeneration, economic development, transport and skills, bringing £1.5 billion of new funding to the region. HS2 has created a web of new development opportunities through enhanced connectivity, and billions of pounds is otherwise pouring into the region’s transportation - through the Midlands Rail Hub, through City Regional Sustainable Transport Settlements 1 and 2, and through the Local Integrated Transport Settlement.  

So far, so very good for the region and its 11 million people. Its young, diverse and energetic population continues to grow, and opportunities abound. Yet look a little closer, and you’ll see many of the same obstacles ahead for the ‘Midlands Engine’ as for the rest of the UK. Providing affordable housing and socially cohesive communities is still a major challenge, and local authorities are severely stretched. Decarbonisation is no longer an abstract nice-to-have, it’s mandatory. And decision-makers must contend with the worsening backdrop of a changing climate.

To make growth sustainable, we need clear regional leadership, effective spatial planning structures, and more devolved decision making, as this government has outlined. That’s how to ensure that major schemes - whether they be transportation, infrastructure or housing - both set out, and deliver on bold aspirations.

Yet that’s harder than ever given the complexity of today’s world - where programme delivery is increasingly fraught with risk. What’s needed is a leftward shift. Early stage, multidisciplinary collaboration should create right first time’ programmes and integrated strategies that ensure smooth progress from design all the way through to construction. For the West Midlands, getting this right could genuinely mean transformation.

Devolution evolution to place-led growth

For an overview of the roadmap to further devolution, it’s helpful to look to London. The Greater London Oversight Committee released a report at the end of 2023 with key recommendations for devolution priorities, in which a few key imperatives stand out. First, to progress further fiscal devolution, through current business rates, council tax systems, and other duties. Second, to retain revenue locally - to better respond to local needs and spend it more effectively. That will enable devolution to be a catalyst for innovation. And third, that mayors and combined authorities are best positioned to deliver reform, and importantly, to scale up climate, health and wellbeing and net zero initiatives.

Or in other words, to deliver place-led growth. A place-led approach is founded on a strong understanding of local issues, interconnections and relationships, which in turn drives coordinated, integrated investment. That’s why combined authorities are uniquely well positioned to deliver it, and one reason why the previous government struggled to effectively land its Levelling Up agenda over the last few years.

However, strategising and executing complex schemes and master plans that integrate a huge range of diverse priorities is pioneering work.

Projects and programmes must now think harder, deeper, and earlier about how to deliver environmental and social outcomes, and understand how to measure and map those outcomes through effective evaluation mechanisms.

From health to housing, employment to education, capturing and accounting for place-led growth is an extraordinary challenge for planners, designers and leaders.

Common wealth

The Commonwealth Games in 2022 show what can be achieved when place, vision, and leadership align. With an estimated audience of 1.5 billion spectators globally, 13,000 volunteers and 6,600 athletes, it was a huge economic boost in the short term to the retail, hospitality and entertainment sectors. But in the long term, its new sporting facilities and improved transport links have had lasting benefits to commerce and community. That’s how to link investment to outcomes, by seeing the place-led big picture.

We’re proud of our role in securing planning consent and discharging planning conditions for all the Commonwealth Games venues. During the Games, our team in Birmingham were able to attend the events and witness the fruits of their labour. They saw the transformation of the city, social value being created in front of their eyes, and opportunities for how to keep improving.

We need to keep that momentum, learning from what doesn’t work and enhancing what does.

Forging a new legacy

Around the UK, both the public sector and private sector will be keenly watching the West Midlands. Armed with a new devolution deal, a sustained period of investment, and charged up with optimism, this upcoming period has huge potential to get the Midlands Engine off to a flying start. With a bit of luck, and a lot of integration, the region will demonstrate how to achieve sustainable, place-led growth.