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Spring Forward: Insights Shaping the West Midlands in April

Headlines

WMCA’s Expanding Services Sector Signals Opportunity Despite Manufacturing Challenges

According to an Oxford Economics briefing note, the WMCA area recorded the fastest growth in professional services jobs among combined authorities from 2020–2025, driven largely by Birmingham’s legal, accounting and head‑office activities. Foreign investment has surged too, with FDI stock exceeding £90 billion in 2023. However, reliance on manufacturing — especially automotive and defence — leaves the region exposed to high energy costs, labour shortages and global headwinds, posing risks to future competitiveness.

 

Sharp Fall in Graduate Jobs Raises Alarms for West Midlands Skills Pipeline

Graduate vacancies in Greater Birmingham have collapsed, dropping nearly 70% since 2022, steeper than the national decline. Recruitment has weakened across key sectors such as finance and tech, with many graduates redirected into lower‑skilled roles. Pay growth for graduate posts has also lagged. While AI‑related task automation may be contributing, wider economic pressures dominate. For the WMCA, this signals a tightening early‑career labour market, underscoring the need to protect local talent pipelines and strengthen employer demand for higher‑level skills.

 

Mayors to Gain more Spending Power Under Reeves Tax Plans

Chancellor Rachel Reeves has announced plans to devolve a share of national tax revenues to regional mayors, with details due in the autumn Budget. The reforms, initially targeting areas ready to benefit, aim to strengthen local economic leadership alongside major investment in AI and quantum technologies. For the WMCA, the proposals signal potential new fiscal powers to drive regional priorities, support innovation, and tackle long‑standing productivity challenges across the West Midlands.

 

West Midlands Secures £50m Innovation Fund to Accelerate Cluster Growth

The West Midlands Combined Authority has secured a £50m Local Innovation Partnerships Fund to support high‑growth clusters in advanced manufacturing, health and life sciences, and creative immersive technologies. Backed by government via UK Research and Innovation (UKRI), the fund aims to speed up commercialisation, scale innovative businesses, and unlock £190m in private investment, supporting around 2,000 jobs and adding an estimated £700m to the regional economy.

 

West Midlands Rail Revolution Continues as Mayor Announces Opening Dates for Five New Stations

Five new railway stations opened to passengers – two in March, and three on Tuesday 7 April, completing a £185m project, supported by significant Government investment, to reconnect communities to the rail network for the first time in generations. The new stations will give residents a faster and greener alternative to the car for their journeys, reducing traffic and making it easier for people to visit town centres and support local businesses.

  • The Black Country: The brand-new Willenhall and Darlaston Stations opened on Thursday, 19 March. These were last visited by train services in 1965.
  • Camp Hill Line, Birmingham: the brand-new stations of Moseley Village, Kings Heath, and Pineapple Road opened on Tuesday 7 April – giving locals easy access to rail services for the first time since the Second World War.

 

 

Report Warns Manchester’s Property‑Led Growth Extracts Wealth and Drives Inequality

A new analysis of Manchester’s development model argues that city‑centre, property‑led growth funnels wealth inward to investors while offering limited benefits to residents. The report finds productivity gains are captured by rising rents, with only 1% of new homes delivered as affordable and minimal public value recovered through Section 106. High housing costs, social‑housing losses and state‑led gentrification squeeze inner‑city communities, suggesting the model enriches capital rather than improving regional living standards.

 

Cities, Not Capital Shortages, Drive the UK’s Equity Investment Map

A new Centre for Cities report finds that over 80% of UK equity deals occur in urban areas, with London alone accounting for more than half of all transactions. The research argues that regional disparities stem from differences in the number of investable firms—not investor bias—and that large cities underperform on deal value despite their scale. It concludes that boosting the pipeline of high‑quality firms is key to improving investment across the UK

 

New IFS Research Warns That Tackling Regional Inequality Requires Coordinated, Long‑Term Action

New analysis from the Institute for Fiscal Studies (IFS) highlights that UK regional inequalities in pay, productivity, skills and health remain among the widest in advanced economies and are highly persistent over time. Research shows that access to investment capital, educational quality, early‑life conditions and the out‑migration of skilled workers all reinforce one another, trapping many areas in cycles of low growth. For regions seeking stronger, fairer economic performance, the findings underscore the need for integrated, place‑based strategies that simultaneously address skills, investment barriers and local opportunity structures.

 

Welsh Wellbeing Reforms Offer Lessons for Post‑Growth Planning in the West Midlands

Post‑growth planning research shows how shifting from GDP‑driven policy to wellbeing and sustainability can reshape land use and transport systems. Wales’s Wellbeing of Future Generations Act demonstrates how wellbeing‑led planning can influence national and local policy, though tensions, resource pressures and growth‑focused measures remain. For the WMCA, the Welsh experience highlights how integrated, wellbeing‑centred planning could support regeneration, reduce travel demand, and align transport and land use decisions with long‑term social and environmental priorities.

 

APPG Warns UK Risks Falling Behind Without Stronger Digital Infrastructure Oversight

A new Digital Communities APPG report calls for urgent action to close the UK’s digital divide, warning that delays to mobile and broadband rollout could cost tens of billions in lost economic output. It urges Ofcom to adopt stronger, independent scrutiny of connectivity data and highlights the need to boost competition by reducing market barriers. The report argues that only coordinated national action can unlock the economic and social benefits of reliable, high‑speed connectivity.

Rising Female Youth Unemployment Threatens UK Progress on Workplace Equality

The latest Women in Work Index shows UK gender‑equality progress stalling despite a small rise the OECD rankings. Female unemployment has increased, driven by a sharp rise among young women, while full‑time female employment remains far below OECD norms. Regional gaps persist, with London lagging (12th of 12) and the West Midlands region standing at 9th place out of 12 UK regions. For the WMCA, where youth unemployment and labour‑market barriers for women are already acute, these trends underline the need for targeted skills, employment, and childcare interventions to prevent widening inequality.

 

Gender Low‑Pay Gap Falls to Record Low but Millions of Women Still Struggle

New Living Wage Foundation analysis shows the UK’s gender low‑pay gap has narrowed to 4.5 percentage points, its lowest level on record, yet 2.5 million women—one in six female workers—still earn below the real Living Wage. Women remain disproportionately represented in low‑paid, insecure and part‑time roles, holding twice as many low‑paid part‑time jobs as men. The blog warns that despite progress, structural inequalities continue to limit women’s financial security. No regional breakdown is provided in this short piece of analysis.

 

New Insights Report Warns Early Inequalities Still Shape Young People’s Futures

A new Understanding Society report finds that children’s and young people’s life chances remain heavily influenced by early‑years funding, regional inequalities, family resources and intergenerational poverty. It highlights how background shapes both ambitions and outcomes, and urges investment in early childhood support, extracurricular activities, training pathways, affordable housing and targeted welfare reforms. Researchers argue the UK faces a major generational challenge requiring stronger “social infrastructure” to break persistent barriers to opportunity.

AI Methodologies Report Warns of Rapid Shift Toward Task‑Level Analysis

A new desk review of AI‑and‑labour research by the Institute for the Future of Work (IFOW) finds that recent studies increasingly assess automation risks at the task level rather than by occupation, driven by advances in natural language processing and large language models. It highlights growing use of scenario‑based policy modelling by think tanks and recurring concerns over static assumptions and limited causal evidence. The report concludes that AI’s labour‑market effects remain uneven, with lower‑skilled workers facing greater displacement exposure.

Middle East Turmoil Heightens Economic Risks as West Midlands Seeks Stability and Growth

Latest intel from the Economic Intelligence Unit (EIU) explains that the Chancellor’s stability-focused Spring Forecast has been overtaken by Middle East conflict, with UK growth, inflation, and labour market forecasts increasingly uncertain. Rising energy costs and global supply disruptions threaten WMCA businesses, though the region benefits from strong equity investment, new innovation funds, and transport upgrades. Labour shortages, youth unemployment, and skills gaps persist, underscoring the need for targeted regional policy to protect growth and resilience across the West Midlands. Read the full analysis in the annex.

Government Sets Out Major Schools and SEND Reforms to Boost Inclusion and Raise Standards

The government’s Every Child Achieving and Thriving plan outlines reforms to broaden curricula, strengthen inclusion and reverse rising school disengagement. It prioritises early support, improved belonging, and better outcomes for disadvantaged and SEND pupils, supported by a parallel plan to recruit 6,500 additional teachers. For regions seeking to tackle persistent absence, uplift attainment and align education with wider social and economic goals, the proposals offer a framework for more inclusive, community‑aligned schooling and stronger local partnerships.

 

New Research Shows Motivation‑Boosting Interventions Improve Young People’s Readiness for Work

A new Institute for the Future of Work (IFOW) working paper finds that short, structured self‑reflection sessions can significantly strengthen optimism, intrinsic motivation and perceived work‑related skills among young people from low‑income backgrounds. These low‑cost interventions improve engagement with careers support and help prevent young people becoming NEET, offering practical value for regions seeking to boost inclusive skills pipelines and support smoother transitions from education into good work.

 

New Report Shows 4.4 million UK Jobs Still Pay Below the Real Living Wage

The Living Wage Foundation’s 2025 report finds that 14.6% of employee jobs—4.4 million in total—pay below the real Living Wage, a slight improvement on last year but masking sharp local disparities (no regional breakdown provided). Part‑time, hospitality and sales workers remain most affected, alongside areas with entrenched low pay. With living costs still historically high, the findings highlight ongoing pressures on low‑income households and the need for locally targeted strategies to reduce in‑work poverty and support inclusive economic growth.

 

A New Vision for an Enrichment Entitlement and an Extended Day for all Young People

The Eton Star Partnership argues that high‑quality enrichment—music, sport, drama, debating and wider co‑curricular experiences—should be a universal entitlement. Their forthcoming state schools in Oldham and Dudley embed enrichment at the core of the curriculum, aiming to close gaps faced by disadvantaged communities. For the WMCA, where access to enrichment varies widely, the partnership’s national mapping work underscores the need to identify local “cold spots” and expand opportunities that build skills, confidence and aspiration across the region.

 

New Paternity Allowance Proposal Aims to Boost Fathers’ Leave Uptake and Support Working Mothers

According to the Institute for Policy Research, UK parental leave policies continue to fall short on gender equality, with fathers taking far less leave than mothers due to low pay, complexity and ineligibility, especially among the self‑employed. New proposals recommend a six‑week, salary‑linked Paternity Allowance for self‑employed and worker fathers, mirroring Maternity Allowance. For areas like the WMCA, where boosting maternal employment, supporting self‑employed workers and reducing gendered labour‑market gaps are important, stronger paternal leave uptake could improve workforce retention and family wellbeing across the region.

Why Health Inequality Matters for Labour Market Outcomes in the Midlands

A City-REDI blog highlights rising illness, long NHS waits, and widening labour market inequalities, all acutely affecting the WMCA area. High chronic illness, youth unemployment, and healthcare backlogs constrain productivity and skills growth. West Midlands communities face above‑average sickness absences and deprivation, underscoring the need for coordinated regional action combining health improvement, early intervention, and targeted employment initiatives to stabilise the workforce and support long‑term economic resilience.

 

Policy Exchange Sets Out Dutch‑Style Healthcare Roadmap as NHS Reform Debate Intensifies

Policy Exchange has proposed replacing England’s NHS model with a Dutch‑style social insurance system, arguing it would preserve universal access while improving responsiveness and efficiency. Backed by the architect of the Dutch reforms, the plan sets out a 1,000‑day transition focused on patient choice, better incentives and targeted resources. For the WMCA area, where long waits, high sickness rates and workforce pressures constrain growth, the debate signals potential future reforms that could reshape service delivery and regional health outcomes.

 

Study Finds Remote and Hybrid Work Essential for Disabled Workers’ Job Access and Wellbeing

A major UK study by the Work Foundation shows remote and hybrid working have become vital for many disabled people, significantly improving health, job retention and access to opportunities. 85% said flexible options are essential when job‑seeking, while 79% would not apply for roles without them. However, benefits are uneven, with Black, ethnic minority and less affluent workers reporting fewer positive outcomes, highlighting the need for more equitable access to flexible work across the UK.

 

Public Backs Health Tech but Remains Cautious on AI, New Survey Finds

A major UK survey conducted by the Health Foundation shows strong public and NHS staff support for greater use of technology in health care, with 55% of the public saying tech improves care quality and most welcoming expanded NHS App functions. Support for AI is rising but remains more hesitant: only 38% believe it will improve care and people prioritise safety, oversight and human involvement over speed or efficiency by 70% to 30%. These findings underscore the importance of building trust, addressing inequalities in digital readiness, and ensuring that future health‑tech reforms are designed with strong safeguards and clear public engagement mechanisms.

 

NHS Work Support Pilots Offer New Opportunities for Economically Inactive Residents

A new £25 million national funding boost from the UK Government will expand NHS-led pilots to help patients with health conditions stay in or return to work, targeting areas with high economic inactivity. Support includes NHS‑funded employment coaching, physiotherapy, counselling and use of wider professionals to reduce GP workload. With the West Midlands facing above‑average long‑term sickness rates, the model offers a roadmap for strengthening local employability, preventing workforce drop‑out and aligning health investment with regional growth ambitions.

 

Nesta Modelling Suggests Unhealthy Food Tax Could Cut Obesity with Modest Consumer Costs

A new Nesta report finds that a tax based on the UK Nutrient Profiling Model applied to 12 categories of unhealthy foods could significantly improve diets and reduce obesity, with only modest increases in household food spending. The modelling shows such a tax could drive reformulation, lower calorie intake and meaningfully reduce overweight and obesity, though implementation remains a political choice balancing health impact, consumer cost, and industry feasibility.

 

Wales Basic Income Pilot Shows Gains in Stability but Highlights Ongoing Challenges

A new Welsh Government evaluation finds that the Basic Income pilot for care leavers—now in its third year—improved participants’ housing security, wellbeing and transition to independence. Based on follow‑up interviews, young people reported greater stability, while professionals noted clearer decision‑making and reduced financial stress. The report identifies challenges including the abrupt post‑pilot income drop, housing scarcity and costs, weak budgeting skills, uneven support access, exploitation risks, and limited employment opportunities. The report also refines the programme’s theory of change and identifies remaining challenges as the pilot moves toward completion in 2027.

 

Universal Free School Meals Boost Uptake and Ease Pressure on Families, Interim Report Finds

A new Welsh Government evaluation shows universal primary free school meals are increasing take‑up, reducing stigma, and easing financial strain on families. Schools and catering teams have delivered over 61 million meals since full rollout in 2024, with early signs of improved wellbeing and healthier eating habits. However, the report warns of a decline in applications for means‑tested support, risking reduced funding for the poorest pupils.

New National Funding Boost Aims to Reduce Homelessness Pressures

The government has also announced over £50 million to combat homelessness, including a £37 million fund for community organisations and a £15 million programme targeting areas with the most severe rough sleeping pressures. For the WMCA—where homelessness and temporary accommodation rates remain high—the investment signals opportunities to strengthen local prevention, expand trauma‑informed services, and build more coordinated support pathways aligned with the region’s housing and public service innovation priorities.

 

Updated MHCLG Appraisal Guide Brings Health Impacts into Urban Planning Decisions

The updated MHCLG Appraisal Guide introduces new tools to assess how urban design affects health, including the HAUS model developed by the TRUUD consortium. With nearly 200 health‑related urban pathways now incorporated, practitioners can better value long‑term impacts when shaping regeneration and housing projects. For the WMCA area, where health, housing quality and urban design are central to inclusive growth, the guidance strengthens the case for investment that improves wellbeing, productivity and value for money across local places.

Stalled Housing and Employment Sites to be Unlocked with New £165m Road Fund

Thousands of new homes and jobs are set to be unlocked as the government launches a new £165 million fund to remove the barriers holding back housing and key growth developments across England. The investment targets stalled developments where funding gaps have made progress difficult, with a deliberate focus on areas that have historically struggled to access the funding needed. The funding is part of the government’s Road Investment Strategy - the biggest long-term investment in England’s motorways and major A-roads in a generation - with over £27bn committed to keep the country moving and drive growth in every region.

 

Devolution Driving Change - Optimistic Signs for Public Transport in Latest Report on Transport Trends

The report from the Urban Transport Group - Inside track: The state of transport 2026 - explores how the transport landscape has evolved over the past decade, as well as focusing on the most recent year of transport statistics. It charts the progress of devolution and legislative changes that are starting to (and will continue to) impact transport services across the UK. Although public transport trends are growing in many regions, this is not the case in the West Midlands, with declining bus patronage over the last 18 months.

 

Rail Devolution Seen as Key to Unlocking WMCA Growth Potential

According to the Centre for Cities new report, national rail reform creates new opportunities for devolved control of local commuter services, but uncertainty remains over how metro mayors can progress beyond limited “collaboration” arrangements. For the West Midlands, integrating heavy rail with buses and Metro is essential to boosting labour market connectivity and productivity. Evidence suggests rail devolution could significantly expand access to Birmingham’s city centre and support economic growth, but clearer commitments from Great British Railways and government are needed to realise these benefits in the WMCA area.

 

Economic Benefits of Accessible Transport

The National Centre for Accessible Transport (NCAT) has published a report on the Economic benefits of accessibility-related schemes in public transport and how to articulate these effectively. It sets out the key gaps, barriers and challenges faced by transport authorities when developing a robust business case for improved accessibility in transport and makes five key recommendations: embed accessibility in organisational culture; strengthen policies and strategies that prioritise transport accessibility; increase the collection and sharing of data relating to accessible transport and its impacts; strengthen and look for alternate ways to appraise accessibility in business cases and present the benefits; and ensure updated Green Book and other central guidance documents support transport organisations to prioritise accessibility and facilitate access to funding.

 

Megaprojects and the Transition to Post-Growth Infrastructure

A journal article published in Economy and Society argues that to understand whether infrastructure megaprojects support or block more sustainable, “post-growth” alternatives, we must look at the relationships that shape how projects are planned and governed. It observes that, while megaprojects, because of their size, often cause social disruption and environmental damage, they cannot be dismissed, since moving to a more sustainable economy still requires major investments. This is particularly relevant for the West Midlands as the article uses HS2 as a case study.

New Paper Calls for Democratic Innovation to Rebuild Trust and Citizen Voice

A new policy paper from the Local Policy Innovation Partnership (LPIP) Hub warns that growing public disillusionment, especially among young people, threatens democratic legitimacy. Building on earlier work on social value and community‑centred innovation, it argues for “dialling up democracy” through more participatory, inclusive governance. For the WMCA area, where trust, civic engagement and community voice are central to successful devolution, the findings highlight the need for locally rooted democratic innovation to ensure residents shape decisions affecting their lives.

 

International Evidence Backs Simple, Percentage‑Based Visitor Levy for English Regions

International evidence collated by the Centre for Cities shows percentage-based visitor levies are more progressive, generate higher revenues, and better align with economic growth objectives than flat-rate models. For the WMCA—home to major venues, business tourism, and varied accommodation markets—such a model would maximise buoyancy, support investment in transport and public realm, and strengthen fiscal autonomy. Experiences abroad highlight the importance of simple administration, minimal exemptions, and flexible local control, all crucial for an efficient scheme in a region with diverse visitor patterns.

 

Devolution Lessons Highlight How WMCA Can Attract Greater Investment

New analysis shows that mayors can unlock substantial private and institutional investment by using devolved powers to shape strategy, improve transport links, strengthen skills systems and convene partners effectively. For the WMCA, case studies such as the Birmingham Sports Quarter demonstrate how clear regional narratives, targeted public investment and tools like mayoral development corporations can accelerate regeneration and leverage billions in private capital. These approaches are increasingly critical as the region competes for investment and seeks long‑term, inclusive growth.

 

IPPR Urges Democratic Renewal as Local Government Reform Accelerates

An Institute for Public Policy Research (IPPR) report argues that government plans to create more unitary authorities could either weaken or revitalise local democracy, depending on whether power is genuinely devolved to neighbourhoods. The report calls for strengthened hyperlocal councils, empowered neighbourhood boards and wider use of participatory democracy. For the WMCA area—where large, complex governance structures risk distancing communities—these recommendations highlight opportunities to deepen local engagement, improve legitimacy and support more inclusive decision‑making as devolution expands.

 

Families First Research Highlights Strong Impact but Rising Pressures

A new Welsh Government report finds that Families First—an early‑intervention programme supporting families across Wales—improves confidence, parenting skills, relationships and emotional wellbeing among participants. Families praised the coordinated, multi‑agency support, which helped prevent small problems from escalating into crises. However, the research also identifies growing challenges, including rising demand, increasingly complex family needs and funding pressures. Despite these issues, stakeholders emphasise Families First’s vital role in strengthening outcomes and providing preventative support.

Net Zero Transition Likely to Lift Productivity Only Modestly, Study Finds

A new modelling report by The Productivity Institute suggests the UK’s transition to net zero will only marginally boost productivity unless green investments trigger wider technological spillovers. A carbon tax initially reduces GDP and hours, raising productivity slightly as hours fall faster than output, with medium‑term gains growing as electricity becomes more substitutable for fossil fuels. For the WMCA, which faces major electrification demands in transport and housing, the findings imply that productivity benefits will rely heavily on complementary innovation and significant investment in green infrastructure to avoid long‑term consumption losses.

 

UK Energy Security Threatened by Rising ‘Grey Zone’ Attacks

New Renewable UK analysis highlights growing risks to the UK’s energy system from deniable, disruptive attacks such as cyber intrusions, undersea cable damage, and hostile naval activity. With conflict increasingly waged in the ‘grey zone’, attribution and response have become more complex. The study, stress‑tested through RUSI‑led wargaming, calls for major updates to national energy‑security tools. For the WMCA area, highly dependent on resilient energy networks for industry and public services, strengthening infrastructure protection is increasingly critical.

 

New National Land Use Framework Promises Smarter Planning for Homes, Nature and Clean Energy

The UK Government’s first Land Use Framework sets out a strategic plan to balance housing delivery, food security, nature recovery, and clean energy by using land more efficiently. It introduces advanced modelling, a national spatial map and a new Land Use Unit to guide development away from flood‑risk areas and support resilient farming. For the WMCA area, the framework offers clearer planning signals, better coordination of infrastructure, and opportunities to accelerate clean‑energy deployment and sustainable urban growth.

 

CCC Analysis Shows Net‑Zero Pathway Clear but Cost Sensitivities Remain

A new Climate Change Committee supplementary report outlines the costs, benefits and sensitivities underpinning the UK’s Seventh Carbon Budget. It finds that the Balanced Pathway can deliver major long‑term savings, with upfront costs offset by co‑benefits such as cleaner air, lower energy bills and reduced fossil‑fuel exposure. The analysis highlights uncertainties around technology costs, fossil‑fuel prices and harder‑to‑abate sectors, stressing the need for coordinated policy, robust planning and timely investment to stay on track for net zero.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows a fall in regional exports in goods on the year to December 2025. Over the previous year, exports fell by 10.8%. The dashboard also shows a continued steady decline in job-seeking benefit claimants into January 2026. The total number of payrolled employees also seems relatively stable in recent months, despite the drop in advertised vacancies. Find these figures and more in the annex.

 

Decline in Breast Cancer Screening Rates

Data available on the WISE Data Profiler shows a sudden fall and slow recovery of the proportion of females aged 53 to 70 who have been screened for breast cancer in the last 36 months. Before the pandemic, rates were fairly stable across the region, varying from 68.5% in Birmingham to 76.0% in Dudley. During the pandemic this fell to between 52.4% in Wolverhampton and 66.2% in Walsall. Rates have started to recover but still remain between 60.6% in Birmingham and 72.4% in Solihull.

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, Tawfieq Zakria, Harisiva Govindarajan, and Akshita Choudhary, and incorporates commissioned content from the Economic Intelligence Unit (EIU) and other regional partners.