Taking Stock: September Insights for the West Midlands

Study Suggests UK Could Benefit from Higher Public Investment

A Productivity Institute study finds that public investment has a positive and economically significant impact on UK economic output. Using a growth model, researchers estimate that the welfare-maximising share of public investment would be around 5.9 to 6.1% of output, compared with a historical average of about 3.5%. The findings suggest there is scope for higher productive public investment to support economic growth and productivity across the UK.

Call for National Wealth Fund Expansion to Boost UK Investment

A new analysis by the Resolution Foundation argues the Government should expand the National Wealth Fund to help tackle the UK’s long-standing investment gap. It highlights that public financial institutions now have almost £200 billion of balance sheet capacity, but the National Wealth Fund remains significantly smaller than the European Investment Bank was before Brexit. Matching the EIB’s former scale would require an additional £16 billion of investment over five years, with authors urging ministers to avoid higher-cost bond issuance by these institutions.

IPPR Calls for New Fiscal Framework Beyond ‘Headroom’ Debate

An Institute for Public Policy Research (IPPR) report argues that the UK’s fiscal rules have become overly focused on short-term measures of “headroom” rather than broader fiscal sustainability. It calls for a rethink of how governments, markets and citizens assess public finances, proposing a framework better suited to addressing long-term economic challenges while maintaining credibility and responsible budgeting.

New Inflation-Adjusted Income Data Provides Clearer Picture of Living Standards

For the first time, inflation-adjusted Real Household Disposable Income (RHDI) figures have been released for Combined Authorities, providing a clearer picture of changes in residents’ spending power. The data shows WMCA RHDI continued to grow in 2024, with total RHDI rising by 3.5% and RHDI per head increasing by 2.1% after accounting for inflation. While growth was slower than in some other areas, the new measure is significant because it moves beyond cash income to show how living standards are changing in real terms. See full analysis by the Economic Intelligence Unit in the annex.

West Midlands Households Lose £241m Annually to ‘Poverty Premium’, Study Finds

New research commissioned by Fair By Design, a programme run by the Joseph Rowntree Foundation, and conducted by the University of Bristol estimates that low-income households across the West Midlands pay an extra £241 million a year for essentials, making it the second most affected region in Britain after London. The study links higher costs for energy, credit, insurance and household goods to the “poverty premium”. Ladywood and Perry Barr are among the worst affected constituencies nationally, while impacts are also significant across Coventry, Wolverhampton and the Black Country.

Good Jobs Key to Tackling Economic Inactivity, Study Argues

A New Economics Foundation report argues that poor-quality work is a major driver of people leaving employment, particularly after health setbacks. It finds workers in low-quality jobs are significantly more likely to exit the labour market, while secure, flexible and supportive roles help sustain employment. The report calls for a “good-jobs-led” recovery, including stronger protections, flexible working frameworks and employer incentives to support people with health conditions back into work.

JRF Warns of ‘Economic Insecurity Trap’ Affecting Millions

The Joseph Rowntree Foundation finds that economic insecurity is both a consequence and cause of financial vulnerability. Using longitudinal data, it argues that unemployment, falling incomes, low savings and rising housing costs increase insecurity, which in turn reduces long-term planning and resilience. The report calls for policies that strengthen household financial buffers and help people escape a self-reinforcing cycle of insecurity.

Confidence Rises in the West Midlands

The West Midlands economy remains resilient. Recent developments are positive: business activity returned to growth in July, regional business confidence rose sharply, hiring conditions improved and manufacturing order books strengthened. However, higher inflation, energy costs and ongoing labour market weakness suggest the region’s recovery remains gradual and uneven. Read the full analysis in the annex.

Pension Savings Gap Despite Auto-Enrolment Success

A new report finds that automatic enrolment has significantly increased workplace pension participation, rising from just over 40% in 2012 to 89% in 2024. However, around 15 million working-age people are still considered to be under saving for retirement. The report highlights that raising minimum pension contributions could improve retirement incomes but would reduce take-home pay and increase employer costs, particularly affecting low earners and sectors with large numbers of minimum wage workers. It concludes that any increase in minimum pension contributions should reflect this important trade-off.

Skills England Calls for More Flexible and Employer-Led Skills System

Skills England’s 2026 Annual Skills Report highlights the need for a more flexible, employer-led and evidence-driven skills system to tackle skills shortages, improve outcomes for young people and align training provision with economic priorities. Accompanying Sectoral Skills Needs Assessments examine current and future workforce demand across 10 priority sectors, providing evidence to support employer engagement, workforce planning and policy development.

First Jobs ‘Shape Lifetime Prospects’, Research Suggests

New Social Market Foundation research argues that the quality of young people’s first jobs plays a major role in long-term career progression and social mobility. Drawing on polling and interviews, the study examines which roles offer training, progression and opportunity, and why some young people advance while others remain trapped in low-development jobs. The findings are intended to inform government efforts to tackle persistent youth unemployment.

Report Warns Childhood Vulnerability Crisis Requires Radical Policy Shift

A Centre for Young Lives report says childhood vulnerability in England is worsening, with rising poverty, housing insecurity, school absence and demand for mental health support placing growing pressure on public services. It urges the Burnham government to make reducing childhood vulnerability a national mission, backed by cross-government action, earlier intervention and greater powers for mayors and local leaders to coordinate support services.

North-South Health Inequalities Deepen Despite Record Life Expectancy

Overall life expectancy in England reached a record high in 2025, but The King’s Fund warns that health inequalities are widening between northern/more deprived areas and the south/less deprived areas. People in the most deprived communities have seen little or no improvement in longevity, while healthy life expectancy has fallen nationally. The report argues the Government’s aim of improving healthy life expectancy and narrowing regional gaps is unlikely without stronger preventative and cross-government action on the wider determinants of health. The West Midlands is identified as one of the regions with persistently lower life expectancy, alongside northern regions, highlighting ongoing regional health inequalities and deprivation-related challenges.

Intelligent Street Lighting to Support Safer and Smarter Transport Networks

A Chartered Institution of Highways & Transportation (CIHT) article highlights how intelligent street lighting can deliver benefits beyond illumination, with LED lighting columns increasingly being used to collect data on traffic, pedestrian activity, air quality and noise. The article also emphasises the role of well-designed lighting in improving perceptions of safety, particularly for women and vulnerable users, helping to encourage walking and active travel. Intelligent lighting could support safer streets, enhance active travel routes, provide valuable transport planning data and contribute to wider smart city, air quality and net zero objectives across the region.

Connected Active Travel Networks

From Doorstep to Destination, a report published by the Urban Transport Group, argues that improving walking, wheeling and cycling connections is essential to creating truly integrated transport networks, as every public transport journey starts and ends with a local trip. The report sets out recommendations including safer crossings, better pavements, reduced pavement parking, improved cycle parking and stronger integration of active travel into planning and transport investment decisions. The report supports regional ambitions to increase active travel, improve access to public transport and deliver a more connected, inclusive and sustainable transport network across the West Midlands.

Free Tool Launched to Monitor Progress Against Road Safety Targets

Agilysis have launched a free interactive dashboard that allows highway authorities and police forces to monitor performance against the Department for Transport’s new Road Safety Strategy Safety Performance Indicators (SPIs). Covering all highway authorities and police force areas in Great Britain, the dashboard compares local performance against pre-pandemic averages, the Government’s 2022-24 baseline and the latest 2025 data, providing a clearer picture of road safety trends and progress towards national targets. The dashboard offers a useful tool for monitoring road safety outcomes, identifying priority areas for intervention and supporting evidence-based decision-making to help achieve the WMCA’s Vision Zero and safer transport objectives.

England’s Mayors Key to Delivering Devolution and Economic Growth, Says Centre for Cities

A new Centre for Cities briefing argues that metro mayors will play a central role in delivering devolution, boosting local economies and supporting national growth. It highlights existing mayoral powers over skills, transport and planning, while calling for further devolution of employment support, housing and transport powers. The report also advocates greater fiscal devolution, including giving mayoral authorities a share of local tax revenues to strengthen long-term investment and economic development.

Report Urges Government to Accelerate Devolution Agenda

A Re:State report argues that English devolution has not gone far enough and calls for a more radical transfer of powers from Whitehall to mayors and strategic authorities. It proposes greater fiscal devolution, stronger local control over investment and public services, and expanded powers to drive housing, transport, skills and economic growth. The report says empowered regional leaders can boost productivity, regeneration and living standards while improving accountability and public service delivery.

How Government Can Better Engage with Researchers

An Institute for Government report says UK government departments should adopt clearer researcher engagement strategies to make better use of academic expertise in policy making. While links between academia and government have strengthened since 2018, the report highlights ongoing duplication, fragmented leadership and unclear objectives. It recommends clearer accountability, dedicated engagement capacity and stronger incentives for civil servants to use external evidence, arguing this would improve decision making and policy outcomes.

Calls for Stronger Government Communications to Rebuild Trust

A commentary by the Institute for Government on recent UK political instability argues that low public trust remains a central challenge for government. It suggests that while improving communications alone will not restore trust, poor communication can undermine public confidence. Rather than pursuing wholesale reform, the author advocates a focus on “systemic fitness”, enabling government communications to operate with greater agility, stability and reliability alongside stronger policy design and leadership.

IPPR Urges Progressive Politics to Embrace ‘Reciprocism’

The Institute for Public Policy Research (IPPR) argues in a new article that liberal democratic capitalism is failing to deliver rising living standards, stronger communities and trust in institutions. The report proposes a new political approach based on “reciprocism”, combining greater rights with greater responsibilities, stronger collective action and deeper democratic participation. It contends that a renewed focus on shared interests and citizenship is needed to counter growing political disillusionment and the rise of authoritarian populism.

Devolution Success Depends on Local Capacity, Not Just New Powers

A new Local Innovation Policy Partnership (LPIP) briefing argues that the success of English devolution depends as much on local leadership, trust and collaboration as on formal powers and institutions. It uses the concept of “institutional thickness” to explain why some city-regions convert devolved powers into effective strategies while others struggle, and calls for greater investment in local capacity, partnership-building and place leadership, alongside reforms to central government behaviour.

UK Heatwaves Cost Economy £4.4bn as Calls Grow for Climate Resilience Measures

Verdant estimates that heatwaves between May and July 2026 cost the UK economy at least £4.4bn through reduced productivity and disruption to infrastructure and equipment. The report warns that, if recent trends continue, annual heatwave-related losses could reach £25.6bn by 2030. It calls for a national heat insurance scheme, stronger workplace protections and investment in cooling measures and urban greening to improve economic and climate resilience.

UK State of the Climate Report Highlights Record Heat, Drought and Rising Climate Risks

The UK State of the Climate report shows that 2025 was the warmest and sunniest year on record, with rising temperatures, more frequent extreme heat, increasing winter rainfall and accelerating sea level rise. The report highlights severe spring and summer drought conditions, very low river flows and record marine heatwaves, while scientists warn that climate change is intensifying risks to water resources, infrastructure, ecosystems and communities across the UK.

Local Air Quality Action Credited with Preventing Nearly 14,000 Deaths

New research from UK100, a network of local authorities working on addressing climate change, estimates that actions by local and regional authorities in England prevented 13,722 deaths and avoided around £15 billion in health and economic costs between 2019 and 2025. Launched at UK100’s tenth anniversary conference, the study is the first to quantify the benefits of cleaner air attributable specifically to local authority action, with campaigners calling for stronger local-national coordination as devolution and local government reform continue.

Report Warns 1.5°C Global Warming Threshold Is Approaching Rapidly

A new climate briefing warns sustained global warming of 1.5°C is likely to be reached in the late 2020s or early 2030s, shifting policy focus from avoiding the threshold to managing its impacts. The report argues adaptation planning should treat a 1.5°C world as a near-term reality, with increased risks from heatwaves, flooding, drought, water scarcity, ecosystem loss and infrastructure disruption. Continued emissions reductions remain critical to limiting the scale and duration of any warming overshoot.

TCPA Sets Out Vision for Climate-Resilient New Towns

The Town and Country Planning Association (TCPA) has published a vision for a new generation of climate-resilient towns, arguing that government-led new settlements should prioritise climate adaptation and mitigation from the outset. The proposal highlights communities designed to eliminate reliance on fossil fuels, reduce fuel poverty, and increase resilience to overheating and flooding, with an emphasis on enabling future generations to thrive through sustainable planning and infrastructure.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows the regional business activity index rose over the 50 mark once more in July 2026, suggesting some renewed business confidence around the time of Former Prime Minister Starmer’s departure. Prime rental values in Birmingham City Centre remain at historic highs, indicating strong demand for space in the city. Find these figures and more in the annex.

Smoking rates fall but inequalities persist across WMCA communities

Data available on the WISE Data Profiler shows adult smoking prevalence has fallen markedly across the WMCA over the past decade, with rates dropping from 19.2% to 12.2% in Birmingham, 23.7% to 16.8% in Sandwell and 20.6% to 13.3% in Wolverhampton. However, progress has been uneven. Sandwell recorded a spike to 21.0% in 2022, while Birmingham peaked at 19.4% in 2020 before declining. Solihull continues to record the lowest prevalence, falling from 14.7% in 2011 to 10.0% in 2024.