On the Front Foot: May Insights for the West Midlands

Verdant Claims £30bn Can Be Saved by Cutting Government Waste, Not Services

A new report from think tank Verdant argues the UK could free up more than £30 billion a year by tackling waste in procurement, outsourcing, tax collection and fossil fuel subsidies, rather than cutting public services. It criticises austerity and high‑profile “DOGE‑style” efficiency drives as ineffective, calling instead for structural reforms including a Chief Savings Officer, stronger competition, expanded public sector expertise and tougher action on fraud and avoidance.

Government Pivots Growth Strategy Towards Big Cities and Mayors?

Centre for Cities analysis suggests recent government announcements mark a clear shift towards large cities as engines of economic growth. Policies such as the Northern Growth Strategy, city investment funds, and new towns proposals prioritise urban density, connectivity and business investment, with mayors given a stronger delivery role. The approach moves away from dispersed regional spending towards leveraging agglomeration effects in major city regions.

New Paper Reviews Whether Polycentric Regions Can Match Big‑City Growth

A new Productivity Institute paper by WMCA’s Interim Director of Strategy, Jonathan Gibson examines whether regions without a single dominant city can achieve strong economic performance by developing networks of medium‑sized towns. Drawing on evidence from England and internationally, it finds that while most polycentric regions underperform monocentric regions on productivity, polycentric regions can succeed where there is strong connectivity, deep functional integration, and clear economic roles across places. The paper cautions that dispersing growth without these conditions risks diluting agglomeration benefits and weakening productivity, underscoring the need for intentional integration rather than spatial balance alone. For the WMCA area, which has one dominant city (Birmingham) alongside two medium‑sized cities (Coventry and Wolverhampton), this means that there needs to be strong functional integration; clear economic roles for each city; and high‑quality connectivity that sustains agglomeration benefits across the region.

£127.8m Boost for England’s Cultural Infrastructure, with Major West Midlands Gains

The UK Government has awarded £127.8m to 130 arts, museum and library organisations through the new Arts Everywhere Fund. The West Midlands features prominently, with funding for the Royal Shakespeare Company, Birmingham Rep and Royal Ballet, Wolverhampton Arts Centre, Black Country Living Museum, and libraries in Walsall, Wolverhampton, Shropshire and Telford. These awards support building upgrades, accessibility and long-term sustainability across the WMCA area and wider region.

Study Explores Options for Further Income Tax Devolution in Wales

A Welsh Government–commissioned study by the Fraser of Allander Institute and Bangor University analyses four models of income tax devolution, ranging from Wales’ current partially devolved system to full devolution of rates and thresholds. It assesses fiscal risks linked to block grant adjustments and earnings growth. Fiscal devolution arrangements are relevant to the WMCA area following the Chancellors announcement in the Mais Lecture.

Government Overhauls Council Tax Rules to Shield Vulnerable Households

The government has announced reforms to make council tax collection fairer, giving vulnerable households more time and support if they miss payments. From next year, people will have 63 days to catch up before facing enforcement, councils must agree repayment plans, billing will move to 12‑month instalments by default, and liability‑order fees will be capped at £100. Ministers say the changes will curb aggressive debt collection and reduce hardship.

New Blueprint Urges Place‑Based Action to Break Regional Barriers to Social Mobility

A new UN Global Compact Network UK report argues that social mobility in England is being held back by poor local coordination, transport barriers, complex skills systems, and weak use of socio‑economic data. Drawing on place‑based research across five regions, it calls for regional social mobility hubs, better transport affordability, and reforms to the Growth and Skills Levy to widen access to opportunity. The report’s focus on former industrial regions, transport access and locally led coordination is highly relevant to challenges facing the WMCA area.

Youth Poll Warns of Deepening Generational Anxiety as Cost of Living Dominates Young People’s Politics

The UK Youth Poll 2026 finds 16–29‑year‑olds increasingly pessimistic about their life chances, with belief they will be better off than their parents collapsing to 36%. Financial pressures, housing affordability and job insecurity dominate concerns, fuelling distrust in politics despite continued democratic commitment and civic engagement. Young people broadly support inclusive migration, civic notions of British identity and cautious AI use, but feel ignored by decision‑makers. No regional breakdown is provided.

MPs Say West Midlands Shows Promise as UK ‘Flies Blind’ on Innovation Funding

A Commons committee warns that poor national data means the UK cannot track whether R&D spending boosts regional growth, undermining a place‑based Industrial Strategy. Heavy investment remains concentrated in London and the South East. The report also highlights the West Midlands as a positive example, citing strong advanced manufacturing clusters, high private‑to‑public R&D leverage, and its role as an Innovation Accelerator, while calling for deeper devolution and clearer regional funding data.

Innovate UK Pivots to Back Britain’s Next Tech Giants

Innovate UK has unveiled a new strategy to shift support from broad‑based funding towards a smaller number of high‑potential deep‑tech firms, aiming to turn breakthrough research into globally scaled businesses. The plan, set out in its Turning Breakthrough Ideas into Industry Giants prospectus, focuses on six priority sectors and positions Innovate UK as a trusted due‑diligence partner to crowd in private investment and accelerate commercialisation.

£30 million funding boost to help the next generation of games developers take their ideas to the next level

The UK Government has announced a £28.5 million Games Growth Package, doubling funding for UK video game developers under the Creative Industries Sector Plan. The West Midlands is referenced through Leamington Spa, highlighted as a major UK games hub, underlining the region’s role in creative tech growth, jobs and investment outside London. The funding supports new, emerging and scaling studios nationwide.

Middle East Turmoil Continues to Introduce Economic Risks as West Midlands Seeks Stability and Growth

Latest intel from the Economic Intelligence Unit (EIU) explains that UK growth has modestly improved, but global conflict-driven energy shocks are raising inflation risks and weakening outlooks. West Midlands business activity is slowing, with fragile confidence despite relatively strong regional performance. Firms face mounting cost pressures from taxes, wages and energy, suppressing investment and hiring. Labour market conditions remain subdued, while small business optimism stays negative. Structural challenges—including low capital investment and productivity gaps—continue to constrain regional and national growth prospects. Read the full analysis in the annex.

New Study Maps England’s High‑Skills Mismatch by Place

A new University of Birmingham and City‑REDI report finds large regional gaps between employer demand for high‑skilled labour and the supply of qualified workers across England. Using vacancy and workforce data, it shows London and parts of the South face shortages despite high graduate supply, while many other areas have weaker demand. The report argues Local Skills Improvement Plans must tailor higher‑level training and retention policies to local economic structures.

Government Backs Technical Excellence Colleges to Power Skills and Industrial Growth

The government has announced £175 million for 19 new Technical Excellence Colleges to train around 65,000 learners for high‑demand sectors such as advanced manufacturing, clean energy, defence and digital. Within the WMCA area, Birmingham Metropolitan College and City of Wolverhampton College are designated hubs, reflecting the West Midlands’ role as an industrial and skills heartland. The initiative aligns with the UK Industrial Strategy and aims to support regional productivity, inclusive growth and stronger pathways into well‑paid work, reinforcing the importance of devolved, place‑based skills investment.

Benefits System ‘Cliff Edge’ Undermines Apprenticeships for Young People, Warns SSAC

A new Social Security Advisory Committee (SSAC) report finds the benefits system financially penalises families when 16-18‑year‑olds choose apprenticeships, despite government policy treating vocational and academic routes equally. The resulting “cliff edge” can cost households up to £339 per week, discouraging apprenticeships and worsening NEET risks, especially for disabled young people, carers and care leavers. The report calls for urgent reforms to align benefits with skills policy. Findings are highly relevant to skills, inclusion and youth employment priorities across the West Midlands.

Think Tank Calls for Devolution to Tackle Health‑Related Worklessness

A new Institute for Government report argues that England’s centralised employment support system is failing to reduce rising health‑related economic inactivity, now affecting 2.8 million people. It recommends devolving responsibility and flexible, multi‑year funding to strategic authorities to improve engagement, integration with health and skills services, and innovation. The West Midlands Combined Authority is cited as a leading area already receiving devolved funding for the Connect to Work programme through the integrated settlement, highlighting WMCA’s role as an early testbed for more locally designed employment support.

Public Shrugs at Social Care as Misunderstanding and Pessimism Stall Reform

A King’s Fund report finds that most people in England poorly understand adult social care, rank it low among political priorities, and are pessimistic about improvement, despite high dissatisfaction. Support exists in principle for greater state funding, but views on taxation and housing assets are confused and divided. The report concludes that reform has stalled because social care rarely wins votes and becomes salient only during national political controversy.

Scottish Childcare Review Highlights Lessons on Access and Affordability for English Reform

A Scottish Government study finds high take‑up of expanded funded early learning and childcare, with most parents reporting benefits for children’s development, work opportunities, and wellbeing. It also noted ongoing challenges around affordability, flexibility and support for additional needs. While the report contains no direct references to the West Midlands Combined Authority or WMCA areas, it draws comparisons with England by noting parents’ interest in earlier funded childcare from age one, providing policy lessons as English regions, shape childcare and employment reform.

£80m Life Sciences Investment Boosts West Midlands Manufacturing and Health Innovation

In a government press release, over £80 million has been announced for UK life sciences manufacturing via the Life Sciences Innovative Manufacturing Fund. The West Midlands is directly referenced through a £10 million investment at the University of Birmingham to establish a near‑patient biomanufacturing facility, strengthening the region’s role in advanced medicines, vaccines and pandemic preparedness, while supporting high‑skilled jobs and long‑term health resilience.

Councils Warn Early‑Stage Pressures Threaten Delivery of Housing and Infrastructure

A SCAPE report sponsored by the Local Government Information Unit (LGIU) finds councils face mounting risks delivering housing, regeneration and transport as funding uncertainty, inflation and skills gaps derail projects before construction begins. Ninety‑four per cent want multi‑year funding certainty, with early‑stage capacity, procurement expertise and long‑term delivery frameworks seen as critical as devolution and local government reorganisation accelerate. The report argues that without upstream support, nationally prioritised growth ambitions risk delay at local and regional level.

UK Housing Review Warns Right to Buy Has Deepened Supply and Affordability Pressures

The 2026 UK Housing Review from the Chartered Institute of Housing finds decades of Right to Buy sales have sharply reduced social housing supply, pushing more low‑income households into an increasingly expensive private rented sector. With social renting now accounting for just 17 per cent of households and rents at record shares of earnings, the report warns the housing safety net is becoming both costlier and less effective.

DfT’s Integrated Transport strategy published

The Department for Transport’s (DfT’s) Better Connected strategy sets out a long‑term plan to make England’s transport system simpler, more reliable and more accessible. Focused on seamless journeys across modes, it prioritises integrated ticketing, safer and healthier travel, and closer alignment between transport and development. The strategy gives local leaders greater powers and emphasises data and technology to deliver joined‑up networks that better support jobs, growth and daily life. For an in-depth analysis and impact on the West Midlands please contact David Harris, Transport Strategy and Place Manager via Research@wmca.org.uk.

Statutory Guidance on developing Local Transport Plans

DfT have issued guidance on developing Local Transport Plans (LTP)s. This aligns well with the West Midlands LTP5 which can be found here. For an in-depth analysis and impact on the West Midlands please contact David Harris, Transport Strategy and Place Manager via Research@wmca.org.uk.

Transport Data Action Plan published

DfT have also published their Transport Data Action Plan which explains how the Department for Transport will support effective use of data across the transport sector to improve the system. It sets out 5 characteristics (Shared, Trusted, Valued, User-centre, and Responsible) and 11 Action Points including committing to making data available via API, investing in a Transport Data Marketplace building on the Rail Data Marketplace, £30m investment in Digital Twins, and £10m in an Integration Innovation Fund.

Councils face new rules for spending pothole funding, or risk losing their cash

We’re making sure every pound goes straight into fixing roads and tackling potholes across England, not being spent elsewhere. Councils will face new rules on how they spend funding to fix potholes and maintain local roads, as the government sets out new requirements to ensure taxpayers see real improvements. This follows the government’s first-of-a-kind red, amber or green ratings to grade 154 local highway authorities (LHA) based on current road condition and how effectively they are spending the government’s record £7.3 billion funding. The requirements have implications for how the Transport City Regional Settlement for 2027-2032 is prioritised and spent within the West Midlands - which currently does not have any Red rated local authorities (all are Amber rated bar Sandwell and Coventry which are rated Green), but need to ensure that maintenance is sustained.

Local Governments Urged to Mobilise Whole Systems Under Mission‑Led Approach

A New Local toolkit argues that councils and strategic authorities should adopt mission‑led ways of working to navigate uncertainty and tackle complex challenges. Section three focuses on mobilising whole local systems, urging public bodies to act as convenors that align partners across the public, private, voluntary and community sectors. The approach moves beyond siloed service delivery towards shaping markets, pooling resources and sustaining collective action around long‑term outcomes.

Newham Commission Sets Out Blueprint for Inclusion in Fast‑Changing, Diverse Borough

An independent commission in Newham finds that diversity is widely seen as a strength, but warns inclusion and belonging require sustained, deliberate action in a borough experiencing rapid change and cost‑of‑living pressures. Drawing on evidence from residents and institutions, the report calls for a council‑led, cross‑sector strategy to protect community spaces, welcome newcomers, tackle crime and polarisation, and embed inclusive practice across employers, services and civic life, positioning Newham as a national model for cohesion in multi‑ethnic areas. The report highlights that cohesion in diverse regions like the WMCA depends on tackling inequality, investing in inclusive public services, civic infrastructure, and sustained, coordinated place‑based leadership.

Report Urges Stronger In‑House Forecasting in Regional Government:

A new Aston University–WMCA report argues that regional authorities need stronger internal forecasting capability to support effective policy under uncertainty. Drawing on a secondment at the West Midlands Combined Authority, it finds reliance on external economic models alone leaves institutions vulnerable. The report proposes shared methods, training and “operational forecasting blueprints” to embed forecasting as a core strategic function, improving transparency, resilience and decision‑making across devolved government.

Councils See Early Gains from AI but Face Funding and Skills Barriers

A policy report by the University of Birmingham finds local authorities are increasingly using AI, mainly for administrative tasks such as transcription, translation and customer service, with evidence of efficiency gains but limited quantified impact. Wider adoption is constrained by funding pressures, skills gaps, fast‑changing technology and governance risks. The report calls for cautious, skills‑led adoption, strong governance and better evidence‑sharing to ensure AI supports service quality without undermining trust or professional judgement.

£1bn EV Funding to Cut Business Costs and Clean Up UK Roads

The UK Government has announced a £1 billion package to help businesses switch to zero‑emission vans and lorries, aiming to cut costs, support growth and reduce emissions. The funding expands grants covering up to £81,000 per electric HGV and £5,000 per van, alongside major support for depot charging infrastructure. Ministers say the measures will boost fleet resilience against fuel price volatility while accelerating freight decarbonisation.

Climate Change Intensifies Economic Risks as Adaptation Proves High‑Value Investment

A policy-focused analysis from the London School of Economics, highlights growing risks from more frequent and severe climate impacts, including heatwaves, floods and droughts, which are already affecting lives, productivity and public finances. Evidence shows that investment in climate adaptation and resilience delivers high returns and wider social and economic benefits, reducing long‑term costs compared with post‑disaster responses.

UK Climate Tech Growth at Risk Without Stronger Regional Investment

In a blog by the founder of ‘Sustainable Ventures’, the author highlights the UK as a global climate tech leader but warns of regional imbalance in investment and scale‑up support. The West Midlands is explicitly referenced as an industrial heartland successfully pivoting from automotive manufacturing to electric vehicle battery innovation yet facing high early‑stage business failure rates. The piece calls for a national strategy, including regional accelerators and better access to patient capital, to unlock growth outside London.

West Midlands EV Charging Expands but Gaps Persist

In new City-REDI a blog, Dr Magda Cepeda‑Zorrilla assesses the health, environmental and economic case for electric vehicles and reviews charging infrastructure progress. The West Midlands is repeatedly referenced, with over 4,000 public chargers now installed and strong growth in Birmingham and Coventry. However, boroughs including Walsall, Sandwell and Dudley lag behind, highlighting the need for targeted investment, skills development and use of government EV funding to ensure an equitable net‑zero transition.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows a fall in business confidence following the onset of the war in Iran. Both the Business Activity Index and Future Activity Indexes were down in March. The number of job-seeking benefit claimants rose slightly in February in both Youth and Overall categories. The full-year employment rate estimate to December 2025 was down slightly and economic inactivity up slightly, while still within the margin of error of previous estimates. In positive news, annual data released on the qualification level of WMCA area residents suggests more residents are now qualified to level 4 or above (while again being within the margin of error of previous estimates). Find these figures and more in the annex.

Property Sales Remain Subdued Five Years After the Start of the Pandemic

Data available on the WISE Data Profiler shows property sales rising across the WMCA area until the financial crash of 2007/8. Between 1995 and 2007 sales in the Birmingham City area rose from 11.3m to 20.9m per year. Following the crash, this fell to 7.6m. Sales recovered somewhat by 2014 (up to 12.2m) and remained stable up until the pandemic. Sales took an obvious hit in 2020, briefly spiked in 2021 during the stamp duty holiday, but have since fallen further back – recently hitting as low as 7.4m – highlighting issues in affordability. These general trends seen in Birmingham are found in local authorities across the WMCA area.