Essential Intelligence for July 2025

West Midlands to Host UK’s First Regional Investment Summit – West Midlands 2025

The West Midlands will host the UK’s inaugural Regional Investment Summit this autumn, elevating Mayor Richard Parker’s original plan into a flagship national event. Backed by Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds, the summit will spotlight regional investment opportunities and align with the UK’s industrial strategy. It aims to attract global investors, boost local economies, and position the West Midlands as a central force in driving national growth and innovation.

UK Unveils 10-Year Industrial Strategy to Drive Growth and Innovation

The UK Government has launched a bold 10-year Industrial Strategy to boost economic growth, productivity, and resilience. Backing eight high-potential sectors, it aims to attract global investment, support SMEs, and drive innovation in clean energy, AI, and advanced manufacturing. Key measures include £86bn in R&D, tax reforms, planning simplification, and regional investment funds. The strategy promises a long-term partnership between government, business, and workers to secure sustainable prosperity across the UK.

UK Launches £725bn Infrastructure Strategy to Power Growth and Resilience

The UK Government has unveiled a 10-year infrastructure strategy backed by £725 billion to drive national renewal, boost productivity, and raise living standards. The plan integrates economic, social, and housing infrastructure for the first time, supporting clean energy, digital connectivity, transport, and public services. It includes long-term funding for schools, hospitals, and flood defences, and aims to unlock private investment, reform planning, and strengthen regional growth. A new Infrastructure Pipeline and digital tools will ensure transparency, coordination, and delivery across the UK.

UK Manufacturers Shift Focus as US Falls Behind in Export Rankings

For the first time, the US is no longer a top-three growth market for UK manufacturers, overtaken by Asia/Oceania and the Middle East, according to Make UK, the manufacturing industry trade body, and BDO’s, a consultancy, Q2 2025 report. Export optimism is fading amid tariffs and uncertainty, with 60% expecting reduced US trade. While output has grown and global exports are recovering, investment is down and 2026 growth forecasts have been cut, prompting urgent calls for bold industrial strategy and energy cost reforms.

UK Government Unveils Major Pension Reforms to Boost Investment and Retirement Security

The UK’s Pensions Investment Review Final Report outlines sweeping reforms to consolidate Defined Contribution pension schemes and the Local Government Pension Scheme. Aimed at increasing investment in productive assets and improving returns for savers, the reforms will be legislated through the upcoming Pension Schemes Bill. The strategy prioritises scale, value, and local investment, aligning with broader economic growth goals and enhancing retirement outcomes for millions.

Mind the Capital Gap: British Citizens Are Poorer Because UK Underinvests in Capital

A policy brief by The Productivity Institute examines the UK's long-standing productivity gap, with output per hour trailing significantly behind Germany, the US, and France. This underperformance has led to stagnant wages, weaker tax revenues, and mounting fiscal pressure. The brief identifies chronically low public and private investment—averaging under 18% of GDP since 1993—as a key driver of Britain’s weak productivity and economic stagnation.

Report suggests an AI-Powered Civil Service Could Save Millions of Hours

The Social Market Foundation think tank’s report highlights how artificial intelligence could transform the UK civil service by automating routine tasks and improving user-facing services. Case studies show AI triaging in GP practices cut waiting times by 73%, while automation at DWP and HMRC could save over 8 million hours annually. The report urges strategic investment in AI to boost efficiency, reduce backlogs, and enhance public service delivery.

Strengthening the UK’s R&D workforce

The UK’s research and development (R&D) workforce grew from 1.7 million in 2012 to 2.8 million in 2023, driven by demand for digital roles. However, skills shortages persist, with 92% of hard-to-fill R&D vacancies in 2019 due to lack of suitable candidates. A City-REDI/Department for Science, Innovation and Technology (DSIT) study highlights underrepresentation of women, ethnic minorities, and disabled individuals, and warns that without targeted action, future growth—projected to reach 3.5 million by 2035—may deepen regional and demographic inequalities.

The Turnaround: Rebuilding Britain’s Economy

Britain faces a deep-rooted growth crisis, with GDP per capita stagnating since 2008 and productivity lagging behind global peers. Real wages have barely risen, inequality is growing, and regional disparities persist. Economic insecurity, demographic pressures, and policy failures have compounded the problem. A research programme report from Onward, a think tank, entitled “Rebuilding our Economy” calls for bold reforms in planning, infrastructure, energy, and industrial strategy to unlock growth, boost security, and ensure prosperity is more evenly shared across the UK. Decline, it argues, is a political choice—one that can be reversed.

New Framework Aims to Redefine What Makes a ‘Decent Neighbourhood’

A new report from the Centre for the New Midlands and Witton Lodge Community Association introduces the Decent Neighbourhood Standard, a framework to improve local quality of life through community-led accountability. Piloted in North Birmingham, it focuses on neighbourhood quality, stewardship, reducing inequalities, and sustainability. The initiative seeks to empower residents, guide local investment, and influence national policy by embedding local voices in defining and delivering better neighbourhoods.

Facebook Data Reveals Social Capital’s Role in UK Mobility and Wellbeing

A groundbreaking study using data from over 20 million UK Facebook users finds that cross-class friendships significantly boost economic mobility and wellbeing. Low-income individuals with more high-socioeconomic status (SES) friends earn more as adults and report higher happiness and trust. Despite strong class friendship structures, nearly half of low-SES users’ friends are high-SES. Cross-class connections are positively associated with upward income mobility. The study urges policies promoting diverse social ties, especially through inclusive schools, housing, and community groups.

Living Wage Linked to Better Health, Job Satisfaction and Retention, Study Finds

A Living Wage Foundation report finds that workers earning the real Living Wage report significantly better physical and mental health, job satisfaction, and emotional well-being than low-paid peers. Over 80% of low-paid workers believe a Living Wage would improve their quality of life. Those paid the Living Wage are more likely to stay in their jobs and feel enthusiastic at work, highlighting the wage’s positive impact on both employee welfare and employer retention.

Youth Jobs Gap: Disadvantage Deepens for Young People in the UK

The report from Impetus, a charity, reveals that young people facing multiple disadvantages—such as low qualifications, special educational needs, or living in deprived areas—are significantly less likely to be in employment, education, or training. The compounding effect of these disadvantages creates a persistent youth jobs gap, particularly affecting ethnic minorities and those from poorer backgrounds. The report calls for targeted, data-driven interventions to address these inequalities and improve long-term outcomes for disadvantaged youth.

Report Calls for Overhaul of UK Child Poverty Strategy

A report from the Institute for Public Policy Research, a think tank, and Changing Realities, a collaboration funded by The Robertson Trust and Impact on Urban Health, propose a co-produced child poverty strategy focused on boosting household incomes by scrapping the two-child limit and benefit cap, restoring benefit adequacy, and improving housing and childcare support. The plan could lift up to a million children out of poverty by 2030. It also urges expanded access to free school meals and enrichment activities, and calls for policymaking grounded in lived experience.

Russell Group Urges Action to Unlock Opportunity for All

The Russell Group’s “Building Opportunity for All” briefing calls for a national strategy to tackle entrenched inequalities in education and employment. It highlights how research-intensive universities can drive social mobility by supporting underrepresented students, improving access to high-quality education, and partnering with local communities. The report urges government collaboration to ensure that talent from all backgrounds can thrive, contributing to a more inclusive and resilient UK economy.

SMF Urges Universities to Prioritise Social Mobility Outcomes

The Social Market Foundation calls for a shift in how universities are held accountable, recommending that social mobility outcomes—such as graduate earnings and employment—be prioritised alongside access metrics. The report argues that current measures overlook how well universities support disadvantaged students after enrolment. It proposes a new framework that rewards institutions for improving life chances, not just widening participation, and urges policymakers to align funding and regulation with these goals to drive meaningful change.

Youth Futures Foundation Highlights Gaps in Employer EDI Engagement

A Rapid Evidence Assessment by the Youth Futures Foundation reveals that while employers are increasingly prioritising equity, diversity and inclusion (EDI), progress is hindered by limited resources, data, leadership commitment, and confidence. The review identifies key drivers, enablers, and barriers to inclusive recruitment and progression for marginalised young people, but also underscores a lack of high-quality evidence—particularly concerning minoritised ethnic groups—highlighting the urgent need for more robust research to guide effective employer action.

Balancing Work and Care

A new report by the Learning and Work Institute explores how rising ill-health and an ageing population are driving increased demand for unpaid carers, impacting both work participation and the wider labour market. Using data analysis, expert input, and focus group insights, the report highlights the challenges carers face in balancing work and care, and outlines options to better support them in employment.

Talking About Wealth Inequality

A report by the Joseph Rowntree Foundation highlights how public attitudes toward wealth inequality are shaped by deep-seated views and varying levels of trust in the political system. While most people agree the wealth gap is too large and support greater redistribution, opinions on wealth’s broader role in society are more divided. The report underscores the importance of strategic communication, showing that how we talk about wealth inequality can significantly shift attitudes and opinions.

The Future of Public Pension Provision in the UK: Challenges and Trade-Offs

A journal article by the Institute for Fiscal Studies examines the pressures on the UK state pension system due to an ageing population, noting its central role in retirement income. While recent reforms have increased coverage and simplicity, policymakers face tough choices to contain costs—either by raising the state pension age or limiting pension value increases. The article highlights how these options have differing distributional impacts, with age rises hitting poorer individuals harder, while limiting indexation would affect higher-income pensioners more.

A lost decade for living standards

A report from the Resolution Foundation, a research and policy organisation, found that after a difficult few years for living standards, the outlook remains weak and could result in a lost decade for income growth. Incomes in 2024/25 are no higher than they were in 2019/20, and food insecurity is twice as high as it was in 2021. Forward projections suggest varying outcomes for different population groups: annual real income growth for non-pensione/rs over the next five years is expected to be around 1% (approximately £300), while pensioners are expected to see income growth of 5%. Conversely, the average child and mortgagor are expected to be around 1% worse off.

Midlands Cyber and Defence Cluster Poised for Strategic Growth

The Midlands Engine’s latest report highlights the region’s emerging cyber and defence cluster as a key driver of economic resilience and innovation. Anchored by partnerships with WMCA, DASA, and regional defence and security clusters, the report outlines opportunities for investment, skills development, and cross-sector collaboration. It calls for coordinated policy support to unlock the cluster’s full potential and position the Midlands as a national leader in cyber resilience and defence innovation.

£10K Grants Open for West Midlands Creative Innovators

Creative freelancers and SMEs in the West Midlands can now apply for up to £10,000 in funding through CreaTech Frontiers to develop innovative ideas via collaborative R&D. Backed by Mayor Richard Parker and five regional universities, the initiative aims to build a thriving creative ecosystem by 2030. The first £250,000 round closes 4 August, with £1.8 million expected over five years, offering access to labs, mentoring, and academic expertise to turn bold ideas into commercial success.

Six priorities for the region’s tech sector

TechWM, the industry led body convening and championing the West Midlands tech sector launched its West Midlands Tech Review 2025. This six priorities building on last year’s West Midlands Digital Economy Playbook and the West Midlands Futures Green Paper: to strengthen a unified digital and AI strategy; to scale up translational R&D and spinouts; to close the scaleup finance gap; to align digital skills provision with market demand; to embed AI and cybersecurity in business support; and to amplify the region’s global tech narrative.

Dexcel Pharma Chooses Coventry for Sustainable Growth and Job Creation

Global pharmaceutical company Dexcel Pharma is relocating from Daventry to Coventry as part of a long-term growth strategy expected to create jobs over the next five years. The move is intended to improve workplace standards, streamline operations, and support the company’s sustainability goals, aligning with the building’s energy-efficient and community-focused design.

West Midlands-Backed Saicho Raises total of £1.5M to Take on Global Markets

A Solihull-based drinks company has secured a £1.5m boost to help expand into international markets. Saicho has received £500,000 from the West Midlands Co-Investment fund and West Midlands Pension Fund to back innovative regional businesses. Additional support from private investors brings the total funding package to £1.5m.

Further Capital Going into the Midlands Engine Investment Fund II

The British Business Bank is committing £2.6bn of capital to help drive the growth of smaller businesses across the UK’s nations and regions, including the West Midlands.

University Seen as “Bad Bet” in Higher Education Cold Spots, UPP Report Finds

A UPP Foundation report reveals that in areas like Doncaster, dubbed “cold spots,” young people are deterred from higher education due to high costs, limited local graduate jobs, and strong family ties. University is viewed as a risky investment with little payoff, reinforcing intergenerational cycles of low participation. The report calls for coordinated efforts across education sectors and job market reforms to break this cycle and make higher education more appealing and accessible to young people in our nation’s “cold spots”.

Universities UK Sets Out Blueprint for Sector-Wide Transformation

A report by Universities UK’s Transformation and Efficiency Taskforce outlines a strategic vision for modernising higher education through collaboration, digital innovation, and smarter resource use. The report calls for sector-wide cultural change, improved data sharing, and streamlined operations to enhance student outcomes and institutional resilience. It emphasises the need for leadership commitment and cross-sector partnerships to drive sustainable transformation, ensuring universities remain agile and impactful in a rapidly evolving landscape.

Prime Minister Launches Tech Skills Drive for UK Youth

The UK Government has unveiled a national skills campaign to equip young people with the digital expertise needed for careers in technology. Backed by industry leaders and educational institutions, the initiative aims to close the digital skills gap, boost economic growth, and unlock new opportunities in sectors like AI and cybersecurity. The programme will focus on practical training, employer partnerships, and regional outreach to ensure inclusive access across the country.

Faster Access to Obesity Drugs Could Save UK £52 Billion, Report Finds

A Tony Blair Institute report urges the UK to accelerate and broaden access to anti-obesity medications, arguing that current NHS plans are too slow and restrictive. By lowering eligibility to adults with a BMI over 27, the UK could treat 14.7 million people, achieve cost-benefit neutrality by 2035, and generate £52 billion in fiscal gains by 2050. The report frames obesity as both a health and economic crisis, calling for a national prevention programme to drive change

Future Challenges for Health and Social Care Provision in the UK

A journal article by the Institute for Fiscal Studies (IFS) explores the growing pressures on the UK’s health and social care systems and the need to expand supply through both increased inputs and improved productivity. The paper reviews evidence on the effectiveness of healthcare inputs, recent productivity trends, and the specific challenges facing adult social care. It also assesses the fiscal implications of scaling up services under the UK’s current funding model, highlighting the complex policy trade-offs ahead.

Public Misjudges Future Care Needs and Costs, JRF Warns

A Joseph Rowntree Foundation report reveals a stark “care expectation gap” in the UK, where most people underestimate their likelihood of needing or providing care and the true cost of services. While half of people will need care by age 80, only 15% expect to. Many also wrongly assume the state will cover costs, despite long waiting lists and fees exceeding £1,000 per week. The report urges better awareness and urgent reform of the social care system.

Devolution as a lever to reduce health inequalities

The Centre for Local Economic Strategies (CLES) and the King’s Fund have published a report outlining how mayors and strategic authorities can maximise the new statutory duty to improve health and reduce inequalities. The report argues that devolution is not only an economic tool but also a powerful mechanism to transform population health. If implemented effectively, this duty could foster deeper, more sustainable collaboration between NHS integrated care systems and the local government sector, enabling place-based approaches that address the wider determinants of health.

UK Retrofit Supply Chain Faces Skills Gap Amid Growing Demand for Energy Efficiency

A government-commissioned report reveals that the UK’s domestic energy efficiency retrofit supply chain is fragmented and dominated by SMEs, with significant gaps in skills and accreditation. While the sector shows adaptability, future demand for retrofitting services will outpace current capabilities. The study calls for urgent upskilling and coordinated policy support to meet net zero goals, highlighting the need for holistic strategies to transition from a fragmented to a more integrated supply chain.

New Towns Could Unlock Housing Growth, But Barriers Remain, Says WPI Strategy

A WPI Strategy report argues that new towns could help solve the UK’s housing crisis, but warns that outdated planning frameworks, funding gaps, and political risk are major obstacles. Drawing on expert interviews and case studies, the report calls for a clearer national strategy, stronger local leadership, and upfront infrastructure investment to make new towns viable. It urges government to act decisively to harness their potential for economic growth and sustainable development.

Brownfield Housing Undermined by Profit-Driven Model, Report Warns

A New Economics Foundation report finds that while brownfield sites offer potential for housing, high remediation costs and low land values in some locations can make developments financially unviable for affordable housing. Developers frequently cite low returns to justify minimal social housing provision. The report criticises the Brownfield Housing Fund’s commercial focus and calls for a shift toward a development model that prioritises community needs, sustainability, and long-term public value over short-term private profit.

Build to Rent: Patterns in Growth and Geography

A report by Centre for Cities highlights the growing role of Build to Rent (BtR) in tackling the UK’s housing shortage, particularly in major cities. Although BtR currently makes up a small share of total housing, it accounts for 14% of new urban accommodation and is concentrated in city centres, driven by demand from young professionals. The report calls for clearer government guidance and strategic planning to support BtR growth, especially around transport hubs, to help meet national housing targets.

Setting up the Household Support Fund for the Future

A report by the Resolution Foundation, as part of the Safety Nets project funded by the Nuffield Foundation, examines the future of the Household Support Fund (HSF)—England’s largest discretionary crisis support scheme. Originally a temporary post-Covid measure, the HSF has delivered nearly 80 million awards but now requires reform as well as renewal. Drawing on data and interviews with local authorities and low-income parents, the report highlights its successes and shortcomings, and offers recommendations for a more effective, long-term support system.

Transforming the Night Time Economy in Wolverhampton

Wolverhampton has published a draft Evening and Nighttime Economy Strategy for its city centre’s evening and night-time economy, aiming to transform Wolverhampton into a vibrant, inclusive and dynamic evening and night-time destination where residents, workers and visitors can thrive. This is the first locality in the West Midlands that has published a night time economy strategy, aligned to the WMCA’s recognition of the critical importance of our night time economy sectors to the prosperity of our region. The consultation closes on 20 July.

The Role of Devolution in Transport Decarbonisation

The Chartered Institution of Highways & Transportation (CIHT) has published a report on the Devolution Bill, which proposes a transfer of powers from central government to local authorities, and looks set to be confirmed in parliament this year. It examines the role that devolution could play in decarbonising the transport sector, one of the largest emitters of CO₂.

Safer Streets for All: The Upcoming Government Road Safety Strategy

The Bikeability Trust working with Living Streets have published a report on the upcoming Government Road Safety Strategy – Safer Streets for all. It discusses the daily realities experienced by people walking, wheeling and cycling and how to create safer streets for everyone, regardless of how they travel. The report draws on the results of UK-representative polling on road safety, as well as case studies and the results of a call for evidence.

The Safety Impacts of 20mph Speed Limit Introduction on Borough Roads in London, 1989-2013

Transport for London have published analysis of the impact of the introduction of 20mph speed limit restrictions pre- and post-implementation, concluding that the measure led to better collision outcomes for every injury category and every mode of travel examined except motorcycle related fatalities, where no change was observed.

Unregulated and Unsafe: The Threat of Illegal E-Bikes

The All-Party Parliamentary Group for Cycling & Walking (APPGCW) warns of a growing public safety and fire risk caused by the widespread use of unsafe, illegally modified e-bikes, referred to as “fake e-bikes”, purchased through online marketplaces and frequently used in the gig economy. The report makes a range of recommendations to counter the issues it identifies.

The Accessibility and Inclusivity of Bus and Coach Services

The Department for Transport has released a report exploring bus and coach use among disabled people and those with certain protected characteristics, with a particular focus on health conditions and impairments, produced by the National Centre for Social Research (NatCen). The report used a mixed-methods approach to understand people’s experiences, perceptions, barriers and enablers to their use of bus and coach services.

AI Helping to Transform Public Transport

CIHT has published a report on the role of AI in public transport reform, enabling new levels of efficiency and safety, encouraging people out of their cars.

En Route to Renewal: Delivering Better, Greener Buses

The IPPR has released an article emphasising the importance of bus for the economy, environment and society, by providing access to opportunities (both economic and cultural), and contributing to cleaner air by providing a realistic alternative to private car use.

Rethinking Scrutiny: Ed Hammond Calls for Overhaul of Combined Authority Oversight

In a recent article, Ed Hammond argues that scrutiny in England’s combined authorities is outdated and underpowered, failing to match the scale of devolved powers. He calls for a fundamental rethink of how scrutiny is structured and resourced, warning that current arrangements risk undermining transparency and accountability. Hammond advocates for statutory reforms, better funding, and stronger local democratic engagement to ensure combined authorities are held to account effectively as their influence continues to grow.

Chancellor Makes Key Announcements for Region in Spending Review

In June the Chancellor reported on the Spending Review. There were two specific mentions of the West Midlands: to the extension of the Metro, as announced the week prior, and to “progress” the Midlands Rail Hub West. Additional funding lines announced that have direct and indirect implications for the WMCA and its partners are summarised in the annex.

Lack of EV Smart Charging Explored in New Report

CIHT has published a report on the impact of the lack of EV smart charging. For over three decades, the Energy Saving Trust has been working to reduce CO₂ emissions with a recent focus on electric vehicles and charging. In this report, the organisation outlines the many ways they are working with the transport sector, but also highlight the insights drawn from recent research, and recommendations for action to keep the path to net zero clear with much of the focus on electric vehicles.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows that business sentiment rose in May, possibly off the back of the good growth data released by the ONS for the first quarter of the year; trade in goods remained relatively stable both for imports and exports; and the claimant count continues to rise in the WMCA area for both 16-64 and 18-24 age groups. Find these figures and more in the annex.

Dementia Diagnosis Rates Rise Across the WMCA Area

Data on the WISE Profiler shows a continued rise in dementia diagnosis rates per 100,000 people over 65 years old over the last three years. Whether this is the result of recent emphasis on early-diagnosis or increasing prevalence of dementia amongst the elderly will require in-depth research.

Fuel Poverty Rates Fall Across WMCA Area

Latest data on the WISE Profiler shows that the percentage of households in fuel poverty has fallen across the WMCA area and is below pre-pandemic levels in six out of seven local authority areas.