January Insights: What's Shaping the West Midlands in the New Year?
Headlines
Birmingham Economic Review 2025: Resilience Amid Global Uncertainty
The Birmingham Economic Review 2025 highlights a city-region balancing opportunity and challenge. Greater Birmingham’s economy grew 1.4% in 2023, driven by advanced manufacturing, health tech, and professional services, while foreign investment hit record highs. Yet inflation at 4.1%, trade tensions, and falling business confidence weigh heavily. AI adoption and infrastructure projects like HS2 promise future growth, but unemployment (5.7%) and health-related inactivity remain concerns. With bold devolution powers and £800m in new investment, Birmingham aims to lead in innovation, clean energy, and inclusive growth.
UK–Japan Study Highlights Key Drivers for “Second City” Devolution Success
A UK–Japan study comparing the WMCA area and Osaka/Kansai reveals that effective devolved regions depend on enduring institutions, coherent regional geographies, adaptable financing, and continuous learning. The West Midlands Combined Authority exemplifies this with its multiyear, department-style budget model, ensuring stability and strategic trade-offs beyond political cycles. As a result, regions equipped with clear mandates and accountable leadership adjust more resiliently to shocks, fostering sustained local growth and innovation.
Britons Say Social Mobility Is Worsening Despite Well‑being Focus
A Social Mobility Commission report shows most UK adults define success by well‑being and relationships, not income, and nearly three‑quarters now see themselves as working class, mirroring their parents. While 74% feel better off than previous generations, 55% believe it’s harder for people from disadvantaged backgrounds to rise. Although class inequality is recognised by three‑quarters, it trails concerns like inflation. Strong public support exists for apprenticeships, job creation, and school investment as routes to opportunity. Although the report is based on a representative sample, its findings have not been validated at the regional level.
Inflation and Bank Rate
The Bank of England’s Monetary Policy Committee has announced its latest decision to cut the Bank Rate by 0.25 percentage points to 3.75%, marking the sixth reduction since August 2024. Inflation has fallen sharply from its peak above 10% to 3.2%, and further gradual rate cuts are expected if pay growth and services inflation continue to ease. The Committee’s priority remains returning inflation to the 2% target and keeping it stable.
West Midlands Sees Surging Business Confidence Amid Mixed Economic Signals
The December edition of the City-REDI West Midlands Impact Monitor revealed renewed business optimism in October as its Activity Index rose above 50, driven by stronger domestic demand and new market ventures, while national trends reveal persistent labour cost hikes and recruitment challenges. Though energy prices have fallen sharply and global outlook brightened by AI and sound policies, regional concerns linger over skilled worker shortages and lower local productivity growth. Employment remains steady, but joblessness is up slightly compared to last year. More information available here.
PwC Youth Employment Index Shows UK Lagging Behind OECD Peers
PwC’s latest Youth Employment Index reveals the UK ranks mid-table among OECD nations, with persistent challenges in youth unemployment and NEET (Not in Education, Employment or Training) rates. Closing the gap to top performers could boost GDP by billions annually. The report urges targeted skills investment, stronger employer engagement, and regional strategies to improve youth job prospects and productivity, positioning youth employment as a critical lever for long-term economic growth.
New Scorecards Highlight Stark Productivity Gaps Across UK Regions
A University of Manchester dataset offers 2025 productivity scorecards and interactive dashboards for 16 Mayoral Combined Authorities, benchmarking regions against UK-wide averages in areas like business performance, skills, health, and infrastructure. It tracks output per hour and long-term growth, categorising regions such as Greater London as “Losing Ground” despite high productivity, while others like Greater Manchester, Tees Valley, and the North East are “Catching Up”; with the West Midlands in the middle with modest productivity.
How to Lower UK Borrowing Costs
According to a recent Institute for Public Policy Research (IPPR) report, the UK is paying unusually high borrowing costs that cannot be fully explained by economic fundamentals like fiscal sustainability. This limits policy flexibility. To reduce these costs, the government must restore credibility, manage market confidence, and prioritise high-return, growth-focused policies through clear, and consistent messaging. The latest budget marks an initial step by signalling fiscal consolidation while safeguarding growth, but continued effort is essential.
Can we Cultivate Social Capital? If so, how?
In a report by Local Trust, restoring social capital has become urgent after decades of civic decline, austerity cuts, and rising populism. Drawing on lessons from Big Local, which invested £1m in 150 deprived communities, and over 100 research studies, the report explores what worked and how these insights can guide future programmes like Pride in Place to rebuild community trust and resilience. In the West Midlands, Civic Square, a social enterprise working on neighbourhood-scale civic infrastructure for social, ecological, economic, and climate transition was mentioned as an example of good practice.
Social Mobility Stalls Despite Degree Boom, Warns Sutton Trust
The Sutton Trust’s “Degrees of Difference” report reveals that although university participation among disadvantaged students rose significantly over the past decade, wider social mobility across 20 OECD countries—including the UK—has stagnated or worsened. Individuals from non-graduate families remain 45% less likely to reach top-earnings, and the earnings uplift from successful degrees has declined by 8 percentage points. The research argues that expanding university access alone is insufficient and calls for broader, multi-faceted policy approaches to reduce inequality.
High Streets at Risk: Rise of Adult Gaming Centres Sparks Reform Call
A new Social Market Foundation report reveals a 7% rise in Adult Gaming Centres (AGCs) from 2022–24, with a third located in the UK’s most deprived areas amid a backdrop of declining high streets. These venues, often operating under bingo licences, may foster crime, youth exposure to gambling, and social harm. The report urges empowering local authorities with cumulative impact powers, higher licence fees, public-health oversight, and removal of the “aim to permit” rule to curb gambling-related risks.
Can AI Help Close the UK Pay Gap?
The Institute for the Future of Work explores how AI could reduce pay disparities by improving job matching, transparency, and productivity. While automation risks widening inequalities, responsible AI deployment—paired with strong governance and inclusive design—offers opportunities to tackle gender and regional pay gaps. The report calls for proactive regulation, worker voice in tech adoption, and investment in skills to ensure AI becomes a tool for fairness rather than deepening divides.
Young Care Leaver Says Homelessness Has ‘Eaten Away’ at Self-Worth
A young care leaver in England described how being homeless after leaving the care system has “eaten away” at their confidence and wellbeing, saying they were left to fend for themselves without adequate support. The BBC piece highlights rising homelessness among care leavers, with warnings from charities and advocates that many young people face insecure housing and a lack of planning as they transition from care to independence.
Reforming the Triple Lock to Secure Pensions’ Future
British Progress’s report argues that the UK’s “triple lock” state pension formula—boosting payments each year by the highest of inflation, earnings growth, or 2.5%—is unsustainable, as it effectively double-counts inflation surges over two years. To safeguard retirees and public finances, the authors propose recalibrating the earnings and floor components over a 10year period, reducing annual spending growth by an estimated £6.2 bn by 2030 while preserving the principle of protecting pensions.
Deep Training, Not Broad, Slashes UK Productivity Gap
A study by Aston University’s Centre for Business Prosperity shows that intensive training for professional and technical staff boosts productivity by 10.8% per 10% increase in staff coverage, while manager training adds 3.6%. Combined staff–manager training amplifies gains by 20–25%, generating potential UK-wide output increases of £44–46 billion, or up to £265 billion with ambitious adoption. The report urges policymakers to prioritise training quality over quantity and address barriers like financing, poaching, and organisational capacity.
The Impact of Local Social Capital on Different Types of Entrepreneurships
A research paper funded by the ESRC explores how local social capital shapes different types of entrepreneurships. It finds that necessity-driven, less innovative ventures depend more on local networks than high-growth, opportunity-driven businesses. Supporting these locally reliant entrepreneurs is vital for increasing growth and reducing inequality. Using UK data, the study examines these dynamics and their policy implications.
UK Economy in Neutral Amid Mixed Business Sentiment
The latest Business Intel from the EIU highlights that UK markets remain steady despite political noise following the Autumn Budget. GDP fell 0.1% in October, with no growth expected in Q4 as services stagnate and production declines. Inflation eased to 3.5%, and interest rates dropped to 3.75%. Business confidence is mixed: West Midlands shows resilience, but national optimism remains low. Employment weakens with rising unemployment and falling permanent hires, while R&D spending rebounds slightly. Global conditions stay supportive, yet uncertainty clouds UK growth prospects. For this and more, see the annex.
West Midlands Business Support Network Expands with New Growth Hubs
A network of business support hubs that have helped grow 300 companies in diverse communities across the West Midlands is to expand after securing new funding. Two new Community Business Growth Hubs have opened at Colebridge Trust in Chelmsley Wood, Solihull, and The Savoy Centre in Netherton, Dudley, run by Black Country Housing Group in partnership with SWEDA (Skills Work and Enterprise Development Agency), will give even more local entrepreneurs advice and funding to secure investment, win more business and create jobs in their own communities.
UK Launches ‘Youth Matters’ Strategy to Empower Next Generation
The UK government has unveiled “Youth Matters: Your National Youth Strategy,” shaped alongside over 14,000 young people. It pledges to close opportunity gaps, ensure every young person has a trusted adult and safe local spaces, and integrate support into careers, relationships, health, wellbeing, and online safety. Funds back a 10-year shift toward local, collaborative youth services that elevate young people’s voices in decision-making. This long-term plan marks the first national youth strategy in over 20 years. More details available here.
Home Education Surge Pushes Safeguarding to the Brink
An NSPCC report warns that the rapid rise in elective home education in England has outpaced local authorities’ capacity to oversee and safeguard these children. With under-resourced teams and outdated guidance, councils struggle to maintain contact with home-educated children, increasing the risk that vulnerable youngsters fall through the cracks. The report calls for clearer national standards, increased funding, and stronger links between local safeguarding services to prevent a crisis in oversight.
CSJ Calls for Radical Overhaul of Education to Boost Social Mobility
The Centre for Social Justice’s new report argues that the current system fails disadvantaged pupils and needs a fundamental redesign. It proposes a “whole-child” approach, integrating mental health, family support, and skills development alongside academic learning. Recommendations include stronger parental engagement, early intervention, and community-based partnerships to close attainment gaps. The report positions education reform as essential for breaking cycles of poverty and preparing young people for future work and life challenges.
Shifting Demographics Pose Challenges for UK Schools, IFS Warns
The Institute for Fiscal Studies report shows that falling birth rates and uneven population growth will reshape school demand across the UK. Some regions face sharp declines in pupil numbers (primarily in London, but a small fall has been seen in Birmingham), while others will see pressure on capacity (including Wolverhampton). Lessons from past demographic shifts highlight the need for flexible planning, funding models, and workforce strategies to avoid inefficiencies and ensure equitable access to education.
Starting Behind, Staying Behind: Boys from Low‑Income Families Falling Further Behind in School Readiness
A new Institute for Government report shows boys from low-income families significantly lag behind their peers by age 5 and continue to fall further behind throughout school. The report identifies a number of biological factors, parent/home environment, school expectations and societal norms that shape the experience of boys, which mean that the intersection of gender and family income mean that boys fall so much further behind from a young age. It highlights systemic policy failures—fragmented early education, insufficient targeted support, and reliance on free school meal eligibility—that reinforce the opportunity gap. The report calls for more precise, needs-based early years intervention and structural policymaking reforms to help break the cycle of educational disadvantage.
Skills to Build: CSJ Warns of Construction Workforce Crisis
The Centre for Social Justice warns that Britain faces a severe construction workforce crisis, needing up to 239,000 additional workers by 2030 to meet housebuilding and infrastructure goals. With an aging, shrinking workforce and declining apprenticeship uptake, the industry’s reliance on self-employment hampers skills investment. The report diagnoses structural failures in labour models and education‑to‑employment pathways and proposes 26 recommendations—spanning planning, training, regulation, and incentives—to rebuild a sustainable domestic construction pipeline.
Launch of Women in Tech Taskforce
In a press release from the Department for Science, Innovation and Technology, Technology Secretary Liz Kendall announced the launch of the Women in Tech Taskforce to tackle barriers preventing women from entering and leading in the UK tech sector. Co-led by Anne-Marie Imafidon as Women in Tech Envoy, the taskforce will develop practical solutions to boost diversity and complement initiatives like the £187m TechFirst programme, aiming to create a more inclusive and innovative tech ecosystem.
Online Nation
Online Nation’s 2025 report shows UK adults spend 4 hours 30 minutes online daily, up 10 minutes from last year. 95% have home internet, though 5% remain offline. Young adults (18–24) lead with 6h 20m, while 65+ average 3h 20m. Women spend more time online than men, mostly on smartphones, which account for 75–79% of usage. Half of online time is on Alphabet and Meta services, with YouTube and Facebook/Messenger most popular. Smartphone users average 41 apps monthly, with WhatsApp, Facebook, and Google Maps topping the list.
It Takes a Village: Empowering Families and Communities to Improve Children's Health
In a report by the Institute for Public Policy Research (IPPR), decades of investment have failed to improve children’s health because policy focuses on treatment rather than prevention. Based on research with 1,500 parents, the report argues families are the hidden frontline and must be trusted partners. A new approach rooted in everyday life and social norms is essential to create the “healthiest generation of children ever.”
SEND System Faces Unanswered Questions, Warns IFS
The IFS highlights persistent challenges in England’s Special Educational Needs and Disabilities (SEND) system despite recent reforms. Rising demand, funding pressures, and uneven local provision continue to strain resources, leaving critical questions about accountability, sustainability, and equity unresolved. The report calls for clearer long-term strategy and better coordination to ensure children with SEND receive consistent, high-quality support across all regions.
Future-fit NHS Event Series Highlights Path to Neighbourhood Health Reform:
Re:State hosted a series of NHS policy events at the major UK party conferences exploring how to build a community-centric, “future-fit” NHS aligned with the Government’s 10-Year Health Plan. Speakers agreed neighbourhood health must be central, with a shift from fragmentation to integration, aligned incentives, and empowered community providers. Key challenges included defining practical delivery, overcoming siloed systems, and ensuring consistent quality nationally. Read the full report here.
Major NHS Overhaul Could Simplify Government Control but Risks Disruption, Report Says
An Institute for Government report examines the government’s plan to abolish NHS England and fold its functions into the Department of Health and Social Care, saying it could clarify accountability and improve priority-setting but also risks policy incoherence, capacity loss and distraction from core NHS goals. Drawing on past reforms, it argues success depends on a clear vision, sensitive communication, careful pacing and early culture building during transition. Without these changes, the efforts to improve efficiency and patient outcomes risk stalling, leaving the health system vulnerable to future crises.
Declining Health Hampers UK Older Workers
New Institute for Fiscal Studies (IFS) analysis finds that between 2012 and 2022, employment among 55–64-year-olds rose modestly—7 percentage points versus an 11-point OECD average. Poor health—especially among the less wealthy—remains a major barrier: in 2023–24, 18% of lower-wealth men and 22% of women cited permanent sickness or disability versus under 5% in higher-wealth groups. While men’s health has slightly improved, women’s health issues, particularly chronic conditions and depression, have increased.
Study Reveals Most New UK Homes Built Where Demand Is Lowest
A University of Warwick report finds that 70% of new homes offer poorer job access than existing housing, with 18% built in areas lacking schools or GPs. Using house‑hunter search data, researchers introduced two metrics — ‘housing gap’ and ‘tightness’— and assessed demand at a highly local level. They conclude that most development is misplaced and urge local authorities to target shortage zones, aligning planning strategies with actual neighbourhood-level preferences.
Rights to Place: Delivering Spatial Justice in UK Cities
A report by We Made That and Key Cities calls for action on spatial justice, stressing fair access to housing, clean air, green spaces, and the power to shape local environments. Based on research and roundtables across UK cities, it proposes five “Rights to Place” – healthy cities, homes, care, difference, and voice – as a framework for inclusive urban futures. The report urges collaboration among policymakers, professionals, and communities to ensure cities serve everyone, not just the privileged.
Beyond Bricks” Report Proposes Civic Renewal Through New Towns
A Demos report “Beyond Bricks” argues that the UK’s fourth wave of New Towns should not only address housing shortages but also foster a deeper “citizenship of place.” It urges early, meaningful community involvement in planning and long-term stewardship models—like DevCorp+—to empower residents, strengthen trust, and enhance social capital. By embedding civic participation from day one, it positions new settlements as catalysts for democratic renewal and sustainable, connected communities.
Housing Crisis for Older Homeowners Highlighted in Fabian Society Report
A Fabian Society report warns that England’s rapidly ageing population faces a major housing crisis, with millions of older owner-occupiers living in poor-quality, inaccessible homes. It urges urgent government action to ensure decent, adaptable housing, improve existing stock and expand suitable new-build options to support independent ageing, reduce health and care costs, and free up family homes. The report outlines practical policy recommendations to meet these challenges.
Capital Letters: Process Evaluation Report
A report by ATQ Consultants for the Ministry of Housing, Communities and Local Government (MHCLG) evaluates the Capital Letters programme, a non-profit initiative by London boroughs aimed at reducing homelessness and reliance on temporary accommodation. The programme ultimately wound down operations after being unable to achieve financial self-sufficiency. The evaluation reviews its setup, use of MHCLG grant funding, and progress toward financial sustainability, drawing on stakeholder interviews, performance data, and key documents to inform how similar future initiatives could be better supported.
West Midlands Combined Authority Area Awarded £9m for Active Travel
The West Midlands Combined Authority area has received its funding settlement from Government for the next 4 years – with £36m awarded for Active Travel (split between capital and revenue). This will be part of the Integrated Settlement and will be used to support active travel schemes across the seven local authorities in support of achieving the aims of the Local Transport Plan to Become More active, and to create the best possible walk, wheel, cycle and scoot facilities for our residents and visitors.
Connectivity Tool Launched by Department for Transport
The Connectivity Tool was officially launched in December 2025 and provides scores places on how well connected they are to health services, education, shopping, leisure and workplaces. The tool will be used to measure outcomes within the Integrated Settlement. WMCA’s teams are working with DfT to ensure the tool supports policy objective setting within the region. More details available here.
Railways Bill Second Reading in the House of Commons
The bill, which will bring the railways back into public ownership, had its second reading in the House of Commons in early December and has progressed to Committee Stage. Further information on branding, and the ticketing app were revealed. This sits alongside the Government’s announcement to freeze rail fare for the first time in 30 years.
The size of the prize for mayors
Urban Transport Group comments on the Centre for Cities’ recent release which quantified the ‘size of the prize’ for mayors who use this full range of powers to integrate existing transport networks in their cities. It finds that integrating public transport in England’s six established Mayoral Strategic Authorities (the country’s six largest cities outside of London) would improve public transport connectivity to city centres for up to 1.2 million people. The West Midlands would have the greater incrase in connectivity in absolute terms.
Wheels of Fortune: Self-Driving Cars Will Transform Urban Economies
Journal article in The Economist examines the potential future of autonomous vehicles, in particular self-driving taxis. Looks at Waymo, Google's autonomous taxi service, and its implementation in San Francisco and Los Angeles, and imminently, London. The article considers positives such as safety, as algorithms make safer decisions resulting in ten times fewer serious crashes than human drivers, lower medical costs as a result, lower labour cost with no driver, and productivity increase as commuters can work on their way to and from workplaces. It presents issues to be considered such as traffic increase as driving becomes the optimal mode of transport, loss of jobs for not just drivers but for car salespeople, insurance and injury lawyers, and potential increase in crime as autonomous vehicles are easy to vandalise or steal from. It concludes that the impact is likely to be significant but slow, as many policy and infrastructure plans have to be considered in order to implement self-driving taxis and cars in cities. Link (behind paywall) here. The West Midlands has been a seat of innovation for the development of autonomous vehicles and will therefore be keenly interested in the deployment challenges and benefits in London.
Public Trust in Science Under Strain
Demos’ report “A Climate of Resistance” highlights growing scepticism toward scientific expertise and policy decisions based on science. It identifies factors such as politicisation, poor communication, and perceived elitism as drivers of distrust. The report calls for transparent engagement, inclusive dialogue, and better framing of uncertainty to rebuild confidence. Strengthening trust is seen as critical for tackling climate change and other complex societal challenges through evidence-based policymaking.
Stewardship Over Tick‑Box: Reclaiming Social Value in Public Spending
A new City‑REDI report argues that social value in public contracts has become a compliance tick‑box rather than a catalyst for change. It calls for a "stewardship" approach—integrating procurement, governance, and community voice—to transform contracts into platforms for tackling inequality, strengthening trust, and empowering citizens. By positioning public spending as anchor investment aligned with shared purpose, it aims to reframe social value as system-driven change, not just a bureaucratic exercise.
AI in Public Services: Equity Risks Demand Proactive Governance
A systematic review of 128 studies reveals that while AI can enhance efficiency in public services, it often risks amplifying inequities. Current research focuses on regulation and user roles, leaving enabling and leadership roles underdeveloped. The study urges governments to adopt adaptive oversight, hybrid human-AI models, inclusive infrastructure, and global justice strategies. Equity must be embedded in design and governance—not added later—to ensure fair distribution of benefits and uphold democratic legitimacy.
Public Trust in UK Councils Holds Firm Amid Service Cuts
A 2022 APSE-Survation survey finds that public trust in local councils remains significantly higher than in national government, with 54% trusting councils over 14% trusting central government to deliver services (no regional breakdown is provided). Despite slight dips in satisfaction for school meals and social care, and concern over service declines, councils are still seen as best placed for planning and community priorities like waste collection, roads, and climate action. Support is strongest for protecting local services over tax cuts.
Councils Are the Missing Link in UK Growth Strategy
A new Local Government Association report reveals councils currently contribute £117 billion yearly to the UK economy but could unlock an additional £276 billion through place-based industrial strategies. It argues that councils—with planning power, local insight, and partnership roles—are essential to boosting productivity and inclusive growth. However, success depends on stronger devolution, sustainable funding, political leadership, and coordination across government tiers to fully harness councils’ potential.
Policy Blind Spots Undermine UK Decision-Making, Warns IfG
The Institute for Government’s report highlights recurring “blind spots” in UK policymaking, including failure to anticipate long-term risks, weak cross-department coordination, and neglect of implementation challenges. These gaps lead to costly mistakes and erode public trust. The report calls for stronger foresight, better use of evidence, and institutional reforms to embed learning and accountability, ensuring policies are resilient and deliver intended outcomes.
Four Counties Set for Major Council Shake-Up in 2026
The Centre for Cities urges the UK government to realign local authorities in Norfolk & Suffolk, Essex, Hampshire, and Sussex along High-Skill Travel-to-Work Areas when transitioning from two-tier to large unitary councils. This reorganisation aims to enhance economic coherence, support fiscal devolution, and streamline administration by creating councils of around 500,000 people. The report highlights this decisive 2026 restructuring as critical for unlocking local growth and public service reform.
Localisation Era: Resolution Foundation Warns of Uneven Power Shift
A new report from the Resolution Foundation argues that England is entering a “localisation era,” with councils gaining more control over housing, transport, and skills. While this shift promises tailored solutions and stronger local economies, the report warns of risks: widening regional inequalities, unclear accountability, and underfunded local authorities. It calls for a coherent national framework to ensure devolved powers deliver inclusive growth rather than deepen divides.
Councils Urged to Embrace Digital Networks for Smarter Services
The Local Government Chronicle reports that councils must prepare for a new era of digital connectivity driven by full-fibre and 5G networks. The article stresses the need for strategic planning, investment in skills, and partnerships with telecom providers to unlock benefits such as real-time data, improved public services, and smarter infrastructure. Failure to act could widen digital divides and limit local economic growth, making proactive engagement essential for future-ready governance.
England’s Local Government Reform at Risk of Fragmentation, New Report Warns
A Looking to 2050 report by Local Partnerships and LGIU argues that England’s ongoing devolution reforms lack a coherent long-term design, risking a fragmented governance system. It says strategic regional bodies need clearly defined roles, multi-year integrated funding and a “local-by-default” settlement where councils lead frontline services, strategic authorities coordinate regional priorities, and national government provides stable frameworks for transport, housing and economic development.
National Blind Spot: ONS Criticised for Weakening Local Economic Insights
Centre for Cities argues the Office for National Statistics must prioritise subnational economic and local data provision rather than scaling it back, warning that shrinking this evidence base will weaken policymaking at both national and local levels. The article stresses that robust, timely local statistics are essential for understanding regional economic trends and ensuring effective decisions for services, funding and living standards across the UK.
Gender Gap in Carbon Footprints Revealed by IFS Study
The Institute for Fiscal Studies finds men in the UK have carbon footprints about 20% higher than women, largely due to differences in transport and consumption patterns. Income, household composition, and lifestyle choices drive these disparities. The report warns that climate policies could unintentionally widen gender inequalities if they ignore these factors, urging tailored interventions to ensure fairness while cutting emissions.
UK Report Urges Linking Climate Action with Health Gains
A Grantham Institute study finds that climate policies can deliver major health benefits—cleaner air, better housing, and reduced NHS costs—but these are often overlooked. Interviews with UK decision-makers highlight three priorities: improve monitoring of health outcomes, embed health in climate policy frameworks, and raise political awareness of co-benefits. Strong examples exist, but siloed governance and limited resources hinder progress. Aligning climate and health could save lives and money while boosting public support for Net Zero
UK Water Shortages Threaten Decarbonisation Push
A Durham University study warns that water demand from hydrogen production and carbon capture for decarbonisation could surge to 860 million litres per day by 2050, straining supply in regions such as Anglian, United Utilities, and Yorkshire Water as early as 2030–2040. It recommends urgent steps—water recycling, desalination hubs, improved inter-regional transfers and monitoring, and close coordination between water firms and energy projects—to ensure the UK’s transition to net-zero remains sustainable.
MPs Urge Action on Skills Gap to Deliver UK Clean Energy Goals
A parliamentary inquiry warns the UK cannot meet its 2030 clean energy and 2050 retrofit targets without stronger workforce planning. Despite £1.2bn annual funding and new initiatives like the Office for Clean Energy Jobs, evidence shows major skills shortages persist. MPs call for rapid publication of the Warm Homes Plan, better resourcing for skills portability, targeted recruitment of under-represented groups, and short-term skilled immigration. They also urge clarity on energy levies, EPC reforms, and hydrogen’s role in heating.
UNEP Warns: Earth on Brink of Environmental Collapse Without Swift Action
The UN Environment Programme’s Geo‑7, the most comprehensive environmental assessment yet, reveals the world faces intertwined crises—rapid warming, biodiversity loss, pollution, land degradation—and current policies risk cutting global GDP by 4% by 2050. However, transformative shifts in energy, food, waste, and finance systems could avert millions of premature deaths, lift hundreds of millions from poverty, and yield economic benefits reaching US $20 trillion annually by 2070. The report stresses urgent, inclusive, system-wide reforms grounded in science and Indigenous knowledge.
Golden Opportunity Lost as England’s Protected Sites Fail to Deliver
A new Office for Environmental Protection report reveals England’s protected landscapes—from moors and chalk streams to estuaries—are not delivering critical nature recovery. Only about one-third of Sites of Special Scientific Interest are in favourable condition, countless others stagnate or decline. The report warns that laws are sound, but implementation lacks speed, scale, monitoring, funding, and leadership, squandering a “golden opportunity” to reverse biodiversity loss and strengthen nature’s role in climate resilience and wellbeing.
Environmental Improvement Plan 2025 Sets Ambitious Targets for Nature and Climate
The UK government’s Environmental Improvement Plan 2025 outlines commitments to restore nature, cut pollution, and achieve net zero goals. It pledges to expand woodland, improve water quality, and protect biodiversity while tackling waste and air pollution. The plan emphasises local delivery through partnerships and stronger accountability, aiming to reverse environmental decline and meet legally binding targets for cleaner air, thriving wildlife, and sustainable land use by 2030.
WMCA Economic Dashboard
The latest dashboard prepared by the EIU shows a dip in goods exports in the year to September 2025, likely reflecting the JLR shutdown. As will the national picture youth claimant counts continue to rise and the number of payrolled employees falls back, while remaining well above pre-pandemic levels. Find these figures and more in the annex.
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, Anna Watt, Victoria Tidy, Tawfieq Zakria, Harisiva Govindarajan, and Akshita Choudhary, and incorporates commissioned content from the Economic Intelligence Unit (EIU) and other regional partners.