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September Signals: What’s Shaping the West Midlands

UK Consumer Confidence Hits Three-Year High Amid Mixed Economic Signals

PwC’s Summer 2025 Consumer Sentiment Survey reveals a rise in UK consumer confidence, reaching its highest level in three years. While 25–34-year-olds and affluent groups show optimism, most other demographics remain cautious due to inflation and job insecurity. Spending intentions are up for groceries, holidays, and fashion, but overall caution persists. The gap between socioeconomic groups is narrowing, suggesting a potential shift in consumer behaviour ahead of the festive season. Regional breakdown is not provided.

Social Disconnection, Not Immigration, Drove 2024 Riots, UCL Report Argues

A year after the 2024 riots which involved local areas including Birmingham and Solihull, a University College London (UCL) Policy Lab report argues that social dislocation—rooted in poor integration, economic neglect, and weakened community ties—was the key driver of unrest. Contrary to popular belief, immigration levels were not directly linked to violence. Instead, areas with low social cohesion and high deprivation, especially post-industrial towns, were most affected. The report calls for urgent investment in integration, local leadership, and community infrastructure to prevent future unrest.

Report Questions Geographic Equity in UK Public Funding Allocation

A University of Birmingham report explores whether UK public funding should be geographically concentrated or spread. It finds that while concentrated investment can boost productivity in high-performing regions, spreading funding more evenly may better support national cohesion and reduce regional disparities. The study highlights tensions between efficiency and equity, urging policymakers to balance strategic growth with inclusive development goals.

Planning Reforms Could Unlock 280,000 New Homes and £5.7bn Investment

A new report by the Good Growth Foundation proposes rapid planning reforms to help meet the UK’s target of 1.5 million new homes by 2030. Key recommendations include empowering council officers to approve applications directly, activating national planning rules, and removing caps on housing linked to major infrastructure projects. The reforms could deliver up to 280,000 homes and generate £5.7 billion in fiscal headroom, with support from Labour MPs for a locally driven, fast-track approach to development.

How the English Planning System Can Learn From Abroad

A report by the Centre for Cities examines whether recent planning reforms will help meet the UK’s target of building 1.5 million homes. It compares England’s system to those in Germany, France, and Japan, identifying key features that support higher housebuilding abroad. The report concludes that incremental reforms won’t be enough and recommends bold changes like flexible zoning and selective green belt release. Without these, England’s cities are likely to fall far short of their housing targets.

Five Conditions for Successful Place-Based Industrial Policy Identified

A new report from The Productivity Institute outlines five key conditions for delivering effective place-based industrial policy in the UK: a clear economic vision, aligned governance, civic leadership, sustained government partnership, and viable projects. Drawing on US case studies and interviews with policymakers, the report urges the UK to embed place into its industrial strategy to drive inclusive growth and resilience amid global economic uncertainty.

 

What Capacity and Resources Do Mayors and Strategic Authorities Need to Deliver the Industrial Strategy?

An insight paper by the Productivity Institute argues that local authorities—especially mayors—are well-positioned to lead industrial strategy in England. With central government efforts often poorly coordinated, devolved powers and integrated settlements give local leaders the tools to drive productivity and tackle regional inequality. Specifically recommended capacities and resources include: in-house research and analytical capacity, institutional support for labour markets, and mechanisms to amplify business voice.

 

IFS Podcast Warns UK Faces Fiscal Crisis Without Urgent Reform

In this episode of IFS Zooms In, experts from the Institute for Fiscal Studies and the Office for Budget Responsibility explore three major threats to UK public finances: pensions, climate change, and rising debt. They warn that without policy action, government debt could exceed 270% of GDP by the 2070s. The discussion highlights 50 long-term risks and urges reforms to ensure fiscal sustainability and avoid a future economic crisis.

 

Onward Proposes £300K Annual Fee Scheme to Attract Global Wealth

The Prosperity Package recommended by Onward offers a new route to attract high-net-worth individuals to the UK, replacing the abolished ‘non-dom’ regime and failed investor visa. It proposes a £3 million upfront investment in strategic sectors and a £300,000 annual fee for 15 years of tax exemptions on foreign income, gains, and inheritance. The scheme includes no access to public funds and mandatory private service use, aiming to boost GDP by £30.5 billion over a decade and restore Britain’s global competitiveness.

 

UK Must Rewire Government to Deliver Productivity Gains, Report Urges

A major report from The Productivity Institute and NIESR calls for a fundamental overhaul of UK governance to tackle stagnating productivity. It recommends creating a Prime Minister’s Department and a unified delivery unit to coordinate long-term strategies across transport, housing, skills, and digital policy. The study highlights fragmented decision-making and short-term budgeting as key barriers, advocating for empowered local authorities and stable investment frameworks to unlock regional growth and raise living standards.

IPPR Calls for Community Spaces to Counter Far-Right Extremism

Following violent unrest in Southport, the Institute for Public Policy Research’s (IPPR’s) latest paper urges government action to rebuild physical spaces that foster solidarity and resilience. It links the rise of far-right radicalisation to the erosion of communal venues and proposes a 21st-century welfare fund to support local organising and everyday needs. The report argues that investing in shared spaces is vital to counter misinformation, political neglect, and social fragmentation.

 

The Impact of Local Social Capital on Different Types of Entrepreneurship

A report by the Enterprise Research Centre explores how bridging social capital—community-based, inclusive networks—supports entrepreneurship. It highlights that such social ties help new ventures succeed and enhance resilience during crises like COVID-19. The report also notes that social capital is transferable across domains, making it a valuable resource for entrepreneurs.

 

New Framework Aims to Measure Everyday Cultural Vitality Across UK

The Centre for Cultural Value’s interim report proposes a new Cultural Indicator Suite to better capture the role of arts and culture in daily life. It critiques traditional metrics for overemphasising formal institutions and ‘high culture’, advocating instead for an ecological approach that includes informal, grassroots participation. The framework highlights culture’s impact on wellbeing, identity, and resilience, and calls for inclusive, place-based indicators to guide policy and investment in diverse communities.

 

Over Four Million in UK Face Destitution Due to Immigration Rule

A new Joseph Rowntree Foundation (JRF) briefing reveals that over half of low-income families with "No Recourse to Public Funds" (NRPF) are falling into destitution, with 8 in 10 lacking essentials like food and heating. NRPF, tied to visa conditions, blocks access to mainstream benefits and housing support. Poor data collection obscures the scale of hardship, but estimates suggest over 4 million people are affected. JRF calls for urgent policy reform to prevent deepening poverty and exclusion. Data at the regional level was not provided.

 

Foundational Economy Key to Inclusive Growth, Says City-REDI

A City-REDI blog by Professor Anne Green explores the foundational economy in Wales—sectors essential to daily life like utilities, care, and food—which make up around 75% of Welsh employment. Despite its scale, many jobs in this economy are low-paid and part-time. The Welsh Government has led innovation in this area, investing in local supply chains and resilience through a £4.5 million Challenge Fund, making it an important institution to learn from.

 

Women's Share of Household Spending Rises Sharply Over Four Decades

A new study by the Institute for Fiscal Studies (IFS) reveals that from 1978 to 2019, women’s share of household expenditure in Great Britain rose by 12–13 percentage points, reaching near parity with men. Using a novel method based on preference similarity, researchers found that increased bargaining power—especially among childless women—drove this shift. As a result, individual-level inequality grew more slowly than household-level inequality, highlighting evolving intra-household dynamics.

 

Employers Key to Closing UK's Widening Disability Employment Gap

The Resolution Foundation’s Opening Doors report warns that despite rising employment among disabled people, the UK’s adjusted disability employment gap has worsened. It urges government action to incentivise employers through reforms in recruitment, reintegration, reporting, and reimbursement. Without employer-led change, the UK risks missing its 80% employment target. The report calls for a new Right to Reintegration and better job design to support disabled workers and reduce health-related labour market exclusion.

 

How to Lift Half a Million Children out of Poverty

A report by IPPR calls for scrapping the two-child limit and household benefit cap to reduce child poverty, benefiting 1.6 million children. It proposes funding the £3 billion cost through reforms to gambling taxation, targeting an industry that profits from harmful behaviour and currently enjoys tax advantages.

 

Return to Office Trends Split by Sector, Says British Chambers of Commerce

New research from the British Chambers of Commerce reveals that 41% of UK businesses have increased on-site work requirements over the past year, with nearly half expecting full in-person attendance within 12 months. Manufacturers and Business to Client (B2C) firms lead this shift, while most business to business (B2B) service companies retain hybrid models. Views on productivity vary, with manufacturers more likely to see remote work as detrimental.

 

One in Four West Midlands Youth Face Online Harm, Say Commissioners

A survey by the West Midlands Youth Commissioners reveals that 25% of young people have experienced online harm, including cyberbullying, harassment, scams, and exposure to inappropriate content. Over 1,000 respondents highlighted a lack of effective reporting systems and a culture that dismisses their concerns. The Commissioners, aged 13–18, presented their findings to West Midlands Police, urging stronger protections and youth-led responses to tackle the growing threat of digital harm.

UK Unveils Toughest Crackdown on Late Payments to Support Small Businesses

The UK government detailed its most ambitious reforms in 25 years to tackle late payments in a press release, a problem costing the economy £11bn annually. The Small Business Plan includes new laws mandating payment terms of 60 days, reducing to 45, and empowers the Small Business Commissioner to issue fines and conduct spot checks. Backed by a £4bn finance package, the plan aims to boost SME growth, improve cash flow, and drive national productivity.

 

Restart Programme Boosted by Unified Employer Engagement Strategy

The Institute for Employment Studies’ report on the Restart programme highlights how a shared employer engagement model, led by the ReAct Partnership, has improved consistency and effectiveness across providers. The Prime Provider Network (PPN) enabled vacancy sharing and streamlined employer contact, helping jobseekers access sustainable roles. Interviews and workshops revealed strong collaboration, but also challenges in scaling and measuring success. The findings aim to inform future national strategies for employer engagement.

Hold for EIU intel due COP Wednesday 27 August

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Fabian Society Urges Overhaul of Apprenticeship Levy to Boost Growth and Opportunity

The Fabian Society’s Levying Up report argues that the apprenticeship levy has failed to meet its goals of increasing training, addressing skills gaps, and promoting social mobility. Since its introduction, employer investment in training has dropped by £9.5 billion, and apprenticeship starts have fallen by 31%, with young people and northern regions hit hardest. The report proposes a reformed “growth and skills levy” to give employers more flexibility and better align training with economic needs.

 

Youth Futures Launches 2025–2028 Strategy to Tackle Employment Inequality

Youth Futures Foundation’s 2025–2028 strategy sets out a bold, evidence-driven plan to reduce youth unemployment, especially among marginalised groups. As England’s What Works Centre for Youth Employment, it aims to close NEET gaps by 2050, embed youth voice, and test scalable interventions. The strategy targets eight priority groups, addresses barriers like poor mental health and limited apprenticeship access, and calls for systemic change through collaboration with policymakers, employers, and funders.

 

UKIDG Report Calls for Stronger Entrepreneurial Skills to Drive Innovation

The new UK Innovation Districts Group’s report highlights the need to strengthen entrepreneurial skills across the UK to unlock innovation potential. It identifies gaps in education, training, and support systems, especially in underserved regions. Interestingly, the West Midlands has very slightly higher than average entrepreneurial skills competency (variance across regions is extremely low; WM: 36.5%, UK: 35.9%). The report recommends targeted interventions, better collaboration between academia and industry, and inclusive access to entrepreneurial opportunities to ensure long-term economic resilience and growth.

 

Civil Service Workforce Statistics 2025

A blog by Re:State reviews recent civil service headcount changes, noting modest overall growth driven by a few large departments (Ministry of Justice, Department for Work and Pensions, and HMRC) and surprising reductions in others like the Ministry of Defence. It highlights concerns over an oversized HR function and an underdeveloped digital and data profession. The blog also questions the effectiveness of current exit schemes and points to a lack of younger senior civil servants as a barrier to talent retention and progression.

One Year On: Racist Riots Leave Lasting Health Crisis in Marginalised UK Communities

A year after the 2024 racist riots across 27 UK towns and cities, a report by People’s Health Trust reveals enduring trauma, fear, and worsening health among affected communities. Over 50 grassroots organisations report rising anxiety, isolation, and physical health issues, especially among racialised groups, asylum seekers, and Muslims. The hostile environment, fuelled by austerity, misinformation, and political rhetoric, has deepened inequalities, with many fearing future violence is inevitable.

 

APPG Report Reveals Deepening Child Health Crisis in the North of England

The Child of the North APPG’s latest report finds children in the North are twice as likely to live in food-insecure households compared to the South, with the Midlands regions in between. Childhood obesity rates are highest in deprived northern areas and the West Midlands. Maternal obesity and gestational diabetes are also more common. The report calls for auto-enrolment in food support schemes, lifting the two-child benefit cap, and investing in community food hubs to tackle inequality and improve child health.

 

The Universal Family Childcare Promise: Guaranteeing Support for Parents and Children

A report by the New Economics Foundation, with Pregnant Then Screwed and the Joseph Rowntree Foundation, proposes a simpler childcare system for England. It recommends 15 hours of free childcare weekly for all children aged nine months to four years, plus a cap on costs at 5% of family earnings for additional hours. This would make childcare more affordable for families, accessible, and easier to navigate than the current patchwork system.

Detailing The Database: How The Private Rented Sector Database Can Support Enforcement and Drive Up Standards

A report by the New Economics Foundation highlights the Renters’ Rights Bill’s proposal for a national PRS database as a transformative opportunity to improve housing standards in England. The database could boost enforcement by requiring landlords to upload key documents and enabling tenants to report issues. Economic modelling shows that even modest fees could fund a 233% increase in enforcement staffing. Crucially, the revenue must be ringfenced for local authority enforcement to be effective.

 

£13bn Warm Homes Plan Must Target Poorest to Cut Bills and Emissions

The Resolution Foundation’s No Country for Cold Homes report urges the UK Government to tightly target its £13.2 billion Warm Homes Plan to maximise impact for low-income households. With 37% of English homes in fuel stress, measures like loft insulation—ten times more cost-effective than heat pumps—could save vulnerable families £230 annually. The report recommends income-based eligibility and regulatory reforms to accelerate heat pump adoption, ensuring both affordability and progress toward net zero goals.

 

TCPA Report Traces 80 Years of UK Development Tax Policy Failures

A new Town and Country Planning Association (TCPA) report chronicles the history of UK development taxes from 1945 to the present, revealing repeated failures in design, implementation, and public understanding. It examines four major tax regimes and their impacts on land markets, revenue collection, and planning outcomes. The study highlights persistent complexity, poor communication, and unintended consequences, calling for evidence-based reform and clearer policy frameworks to support sustainable development and fair land value capture.

Sustrans – Including Disabled People in Transport Planning

A Sustrans report from the Transforming Mobility project with Transport for All, funded by the Motability Foundation, examines how to better include disabled people in transport planning. Through research and engagement in the UK and Belgium, it's exploring how cities can improve accessibility by involving disabled people in decision-making. The five key ideas emerging from the research are: rebalance street space; create mobility hubs linking walking, wheeling, cycling, and public transport; roll out side road zebra crossings across the UK; cut car parking to clear pavements; pay disabled people to become members of access panels and advise on local transport decisions.

 

Transport Committee Report on the Importance of Bus

The transport committee’s report highlights declining patronage and its impact on communities, how the Bus Services Bill may support local authorities to support this.  It identifies the need to support local authorities to provide a minimum level of connectivity, and the fact that greater funding certainty is needed. The five year settlements will provide certainty but also identified what Government needs to set out a clear vision as to what a successful bus network looks like – proposing the need for a new national bus policy.

 

Bus Services Bill: What it Means for Passengers and Authorities

The CIHT discuss the implications of the Bus Services Bill in a new article highlighting that protection from sudden cuts to services and increasing the powers of local authority are at the centre of proposed changes. The Bill is intended to support the UK government’s commitment to deliver better buses and aims to empower local leaders in England to choose the bus operating model that works for their local area, providing powers to effectively underpin these models. It will provide local transport authorities (LTAs) with a suite of tools to enable the delivery of better bus services for local communities, and to streamline the franchising process, making it quicker and easier for LTAs to take control of local bus networks.  The bill also introduces greater flexibility within the franchising process, meaning LTAs should be able to deliver more responsive and efficient services.

 

The Transport Challenge for Low-Income Households

The IPPR have released a report focusing on how living on low incomes limits access the building blocks of a good life because of poor transport provision. Transport policy can make a material difference to people’s finances, especially those struggling to make ends meet. It can also help people better access the things they need – from work to education to healthcare – that mitigate some of the damaging impacts of living on a low income in the UK. Transport is also an enabler for the government’s missions to deliver higher growth, clean energy, safer streets, opportunity for all and an NHS fit for the future. Without an improved transport system, government’s efforts elsewhere will be held back.

 

Mayors and Ministers Back British Manufacturers and Greener Buses

Government ministers and metro mayors have committed to greener transport and greater job opportunities across the regions. Transport Secretary, the Local Transport Minister, and Metro Mayors came together for a UK bus manufacturing stocktake, promising to support highly skilled jobs that deliver the Plan for Change. The Government announced plans to ensure a 10-year pipeline of zero-emission bus orders, with around 60% of zero-emission buses funded by government currently being built by UK-based manufacturers. This comes as the Bus Services Bill progresses through Parliament, with the government continuing to drive growth in the industries of the future and put passengers back at the heart of services.

 

Everyday concerns: What People Want from Transport - Transport Has a Key Role to Play in Achieving the UK Government's Missions and Improving Lives. 

New research from IPPR and More in Common reveals that the government has the public’s backing in delivering meaningful transport improvements if the approach and timing is right. The polling and focus groups finds that transport may not be the issue people are thinking about at the ballot box, but it can provide the tangible proof that change is possible and lay the foundations for improved public trust in decision makers.

 

Government Discounts for Electric Vans and Trucks Extended

Thousands of drivers and businesses across the country are set to benefit from lower prices as the Government has today (18 August 2025) confirmed vital funding to support the uptake of electric vans and trucks. The plug-in van and truck grant currently offers discounts up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks, and the Future of Roads Minister Lilian Greenwood has confirmed the grant will continue through to at least 2027. Grant levels for the 2026 to 2027 financial year will be confirmed in due course.

Demos Launches Drive to Overhaul Central Government’s Role in Public Service Reform

Demos has launched a new programme to tackle cultural and systemic barriers within central government that hinder public service reform. Building on principles from the latest Spending Review—prevention, integration, and local empowerment—the initiative aims to shift Whitehall’s behaviours and assumptions. The goal is to create a more enabling, people-centred state by dismantling outdated norms and fostering collaboration between government, communities, and civil society.

 

EY Report Reveals £80bn Annual Cost of Public Sector Productivity Gap

Ernst and Young’s (EY’s) Mind the Productivity Gap report warns that sluggish public sector productivity is costing the UK economy £80 billion annually. If productivity had matched private sector growth since 2019, GDP would be 3% higher. Without reform, this gap could widen to £170 billion by 2030. The report urges investment in digital tools, modern infrastructure, and cross-department collaboration to reverse the decline and unlock billions in economic value.

 

Fiscal Devolution Could Unlock £4.4bn for England’s Counties, Report Finds

A new report from the County Councils Network and Grant Thornton urges the UK government to embrace bold fiscal devolution. By allowing counties to retain portions of income tax, stamp duty, apprenticeship levies, and introducing a tourist tax, councils could generate £4.4bn annually. The proposals aim to empower local leaders to invest in growth, housing, and infrastructure without raising taxes, while addressing regional disparities and boosting national productivity.

 

ICON Report Urges Shift to Hyper-Local Policy for Neighbourhood Renewal

The Independent Commission on Neighbourhoods’ report reviews place-based initiatives in England from 2019 to 2025, highlighting fragmented funding, centralised decision-making, and uneven local capacity. It calls for a more consistent, neighbourhood-focused national strategy, emphasising local leadership, robust evaluation, and holistic approaches. While recent policies show promise, the report warns that short-termism and city-centric models risk sidelining deprived communities, urging bold reforms to empower neighbourhoods and address deep-rooted spatial inequalities.

Report Urges UK to Embrace Air Conditioning for Health and Net Zero Goals

The Centre for British Progress warns that outdated regulations are stifling air conditioning adoption, despite its potential to save lives and support the UK’s net zero transition. With only 5% of UK homes equipped, heatwaves caused around 3,000 deaths in 2022, disproportionately affecting the elderly and disabled. The report argues that air conditioning improves productivity, aligns with solar energy demand, and could help balance the grid. It calls for policy reform to make Britain “greener, healthier, and cooler.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows that the trade surplus in services for the WMCA area rose to £7.0bn in 2023. The overall claimant count as a proportion of the WMCA area population remains unchanged, while youth claimant count continues to creep up. Find these figures and more in the annex.

 

CO2 Emissions Continue to Fall Across the WMCA Area

Latest data now available on the WISE Data Profiler reveals that total CO2 emissions continued to fall across the WMCA area between 2022 and 2023 helping us on our way to net zero by 2041.

 

Mixed Picture for Health Checks Across the WMCA Area

New data now available on the WISE Data Profiler shows the percentage of people who took up an NHS health check when offered rose significantly in Wolverhampton and Walsall, but fell slightly in all other local authority areas. Health checks are important for ill-health prevention and falling take-up rates could be consequential to work in this policy area.

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, Tawfieq Zakria, Alex Hunt, and Will Higgins, and incorporates commissioned content from the Economic Intelligence Unit (EIU) and other regional partners.