Skip to main content

The August Download: Insights & Analysis

Headlines

WMCA Launches Growth Plan to Transform West Midlands Economy

West Midlands Mayor Richard Parker has launched his Growth Plan aimed at boosting the region’s £77 billion economy. The Plan sets out a bold vision to transform the region’s economy over the next decade, with real action starting now and big outcomes by 2035. The vision is to increase residents’ living standards across all parts of the West Midlands. This means bringing more people into good quality jobs, increasing the productivity of the region’s economy and reducing poverty and deprivation, while making further progress towards our journey to net zero. The plan promises 100,000 new jobs, 120,000 homes, improved transport, and support for key industries like clean tech and advanced engineering. It also targets poverty reduction and net zero progress. Backed by government and business leaders, the plan was unveiled in Wolverhampton ahead of a global investment summit later this year.

English Devolution and Community Empowerment Bill

On 10 July, the Government published the English Devolution and Community Empowerment Bill. The full Bill can be read here, with the explanatory notes here. The Government has also released summary “Area Factsheets” which outline the powers and functions per area – see West Midlands here. A summary of key takeaways for the West Midlands produced by the WMCA can be found here. Highlights include a definition of Strategic Authorities and introduces a three-tier devolution model, it expands mayoral powers, enables ‘devolution by default’, and allows the Secretary of State to restructure authorities. From 2027, mayoral elections will use a supplementary vote system.

Overseas Investment Boosts West Midlands Regional Economy with Thousands of New Jobs

In 2023-24, foreign direct investment has helped create over 7,500 jobs in the West Midlands region, reinforcing the region’s growing appeal as a business hub. According to the Department for Business and Trade, international investors have backed key sectors including advanced manufacturing, green industries, and digital technologies. Regional leaders are calling for continued support to maintain momentum and ensure long-term economic growth, positioning the West Midlands as a national leader in inward investment and job creation.

West Midlands Music Tourism Hits £550m; Calls Grow for Further Investment

Music tourism in the West Midlands region generated £550 million in revenue and supported 4,550 jobs in 2024, according to UK Music’s Hometown Glory report. With 1.4 million music tourists visiting the region, industry leaders are urging local authorities to invest more in the sector. Events like Black Sabbath and Jeff Lynne’s final shows highlight the region’s potential. Advocates call for stronger collaboration between government and industry to match the success of other UK cities.

West Midlands Manufacturing Rebounds with Strong Growth and Export Performance

The 2025 Regional Manufacturing Outlook by Make UK shows a positive year for UK manufacturing, with the West Midlands returning to pre-COVID output levels. This year, the region saw a 9,000 job increase, strong investment intentions, and a rebound in automotive output. It remains the UK’s third-largest manufacturing region, contributing 13.9% of the regional economy. Despite slight dips in order books and business confidence, exports—especially to North America—remain strong, though future trade challenges may affect growth.

UK Backs SME E-Commerce Exporters with Trade Simplification Drive

The UK government is working to simplify international trade for small and medium-sized enterprises (SMEs) in the e-commerce sector. By reducing regulatory barriers and streamlining export procedures, the initiative aims to help SMEs expand globally, boost competitiveness, and unlock new market opportunities with greater ease and efficiency.

 

National Industrial Strategy Risks Missing Regional Mark, Think Tank Warns

Analysis of the UK Government’s new Industrial Strategy by the Centre for Cities highlighted a mismatch between sectoral ambitions and geographic realities. While the strategy identifies eight high-growth sectors, it lacks clarity on their regional distribution and risks treating place as secondary. The think tank urges a clearer focus on productivity and better integration of sector and place-based policies. Without this, the strategy may struggle to address regional inequalities or unlock the full potential of cities outside London.

 

Rethinking Development: Territories as Engines of Innovation and Governance

A recent academic article explores the current case for place-based policies, analysing shifting spatial economic growth across OECD regions. It reframes the debate in light of recent trends and evaluates policy responses over the past two decades, comparing approaches in the United States and Europe.

 

Local Public Spending Boosts Local Economies—But Effects Vary by Sector and Region

This July 2025 report by the What Works Centre for Local Economic Growth finds that increases in public spending generate positive local multiplier effects, particularly in health, education, and construction. However, the scale of impact varies by sector and geography, with deprived areas often benefiting more. The study cautions that cuts to public spending can have disproportionately negative effects, especially in places with weaker economies. It underscores the importance of strategic investment to maximise local economic returns and reduce regional inequalities.

The Case for Legally Binding Poverty Reduction Targets

A report by Big Issue calls for a transformative shift in the UK’s approach to tackling poverty through the introduction of a Poverty Zero law, modelled on the Climate Change Act 2008. The proposed legislation would require each government to set legally binding poverty reduction targets at the start of every parliament, embedding long-term accountability and planning into law. The report argues this would counter short-term policymaking, enable sustained investment, and ensure regular scrutiny and public transparency. With mechanisms like judicial review and flexible target-setting, the Poverty Zero framework aims to make poverty reduction a permanent national mission, addressing one of the UK’s most urgent social and economic challenges.

 

UK Faces ‘Lost Decade’ for Living Standards, Warns Resolution Foundation

The Living Standards Outlook 2025 projects minimal income growth for UK households through 2029-30, with typical non-pensioner incomes rising just 1% after inflation. Lower-income households are expected to be worse off than in 2019-20, and child poverty is set to rise from 31% to 34%. Despite a brief recovery in 2024-25, the report warns that without policy changes or stronger economic growth, the 2020s could mark a lost decade for living standards in the UK.

 

Universal Opportunity for Young People

IPPR’s new report outlines a “universal opportunity” vision to tackle entrenched disadvantage and social immobility among UK youth. It highlights that fewer than half of 18–24‑year‑olds feel ready for work, with nearly one million NEET, particularly from disadvantaged backgrounds. The think tank recommends a renewed social contract, career and skills reform, an 80‑hour enrichment entitlement, expansion of youth guarantee schemes, trusted adult support, apprenticeships and wage subsidy schemes to rebalance opportunity across class and region.

 

Employment Rights Bill Set to Transform Low-Paid Work, Says Resolution Foundation

The Low Pay Britain 2025 report highlights the transformative potential of the Employment Rights Bill (ERB), currently progressing through Parliament. It promises major gains for low-paid workers, including sick pay eligibility for 1 million more people and protections for 2.4 million facing insecure hours. While debates continue over its economic impact, the Resolution Foundation argues the UK’s weak worker protections make reform essential. The ERB could shift focus from low pay to job quality and security.

 

UK Launches “Good Food Cycle” Strategy to Transform England’s Food System

The UK government’s new food strategy outlines ten priority outcomes aimed at building a healthier, more affordable, sustainable and resilient food system. It targets rising obesity, food insecurity and environmental degradation through coordinated reforms including improved food environments, support for British farmers, stronger supply-chain resilience, and celebration of local food culture. The strategy commits to collaboration across government, industry and citizens to deliver a long-term generational shift in how food is produced, accessed and valued.

 

Nottingham and Dundee to trial “Public Restaurants”

The University of Nottingham is partnering in the DISHED project to pilot a “public restaurant” model aimed at improving public health and wellbeing by offering affordable, nutritious meals in welcoming, community-designed spaces. Launching in Nottingham and Dundee in spring 2026, these restaurants will be co-created with residents and serve locally sourced, ethically produced food. Inspired by historical and international examples, the initiative treats public restaurants as essential infrastructure—like libraries or parks—subsidized to ensure accessibility for all. The 14-month pilot will be rigorously evaluated for its health, environmental, and economic impacts.

 

Interim Report – Think Neighbourhoods

The Interim Report of the Independent Commission on Neighbourhoods (ICON) argues that tackling England’s most pressing challenges requires a neighbourhood-focused approach. Using the Hyper-Local Need Index (HLNI), the report identifies 613 “mission-critical neighbourhoods” with the greatest need for progress on government missions, home to around 920,000 people. These areas—mainly in the North, West Midlands, and coastal towns—face acute issues like crime, poor infrastructure, and low social capital. The report warns against broad national interventions and calls for targeted investment, a Mission Delivery Prioritisation Framework, and audits to ensure resources reach the area’s most in need. It concludes that empowering neighbourhoods is key to national renewal.

 

‘Powder Keg’ of Tensions and Grievances Remain, One Year on From UK Riots

A report by British Future and the Belong Network, titled The State of Us, presents the most in-depth analysis of social cohesion in the UK since the previous summer’s riots. It highlights widespread public concern over declining services, inequality, and political distrust, alongside issues like immigration, social media, and lack of community interaction. A third of adults report rarely meeting people from different backgrounds, often due to financial barriers. Despite these challenges, the report finds strong local cohesion and community pride; with the collective memory of people coming together during COVID-19 continue to shape people’s feelings of belonging and resilience. Drawing on extensive public opinion research and input from over 170 organisations, it calls for sustained, proactive efforts to strengthen community ties and overcome what it describes as a national “doom loop” of inaction and fragmented responses.

 

New Research Finds Resident-Led Regeneration Efforts Have Doubled Business Growth in the UK’s Most Disadvantaged Areas.

A report by Local Trust highlights how neighbourhoods with strong social infrastructure—like community spaces, local networks, and civic organisations—experience better outcomes in health, wellbeing, and economic opportunity. It shows that resident-led, hyper-local initiatives are especially effective in tackling issues like crime and economic disadvantage and calls for targeted investment in “doubly disadvantaged” areas where deprivation and low social capital intersect. The report makes a clear case: neighbourhood-level action works.

Reflections on Six Years of Workplace Mental Health Surveys

Drawing on six waves of data from firms across the Midlands between 2020 and 2025, the Enterprise Research Centre shows that employers increasingly recognise the impact of mental health on performance, particularly presenteeism and turnover. Hybrid working practices and mental health interventions have become more widespread, though only a minority monitor wellbeing systematically. Employers report that tailored strategies—including workplace adjustments and support initiatives—are slowly shaping responses to mental health issues across the workforce.

UK High Streets Reveal Sharp Regional Divide

New research by the Centre for Cities shows massive variation in UK city centre high street performance: while vacancy rates in London and Cambridge hover around 7–9%, Newport, Bradford and Blackpool see nearly one in five shops empty (Birmingham: 10.8%; Coventry: 12.7%; Wolverhampton: data not provided). Analysing millions of card payments, the report finds the key drivers are weak local economies, oversupply of retail, limited catchment areas and visitor spend. It calls for £5 billion investment in city centres, improved housing density, business rates reform and linking high street revival to broader economic strategies

 

Children in England Facing ‘Almost Dickensian’ Poverty, Warns Commissioner

The Children’s Commissioner for England has warned that many children are now living in conditions resembling those of the Victorian era. The report on children’s experiences of growing up in low-income families highlights rising child poverty, food insecurity, and inadequate housing, with some families forced to share beds or live in temporary accommodation. It calls for urgent government action to address systemic failures and ensure every child has access to basic needs, safety, and opportunity.

West Midlands Tech Sector Powers Inclusive Growth in 2025

The West Midlands Tech Review 2025 highlights the region’s tech sector as a key driver of inclusive economic growth, now contributing 20% of the local economy. It showcases innovation hubs like the Birmingham Innovation Precinct and Warwick Innovation District, emphasises AI and cybersecurity as strategic assets, and calls for investment in digital skills and grassroots entrepreneurship to ensure the benefits of tech-led growth are widely shared.

 

Accenture Selects Refurbished Cornerblock in Birmingham for New UK Office

Global professional services firm Accenture has chosen Bruntwood SciTech’s Cornerblock building in Birmingham’s Colmore Business District for its new UK office. Their arrival follows Bruntwood SciTech’s £500,000 investment into a major refurbishment of Cornerblock.

 

Solihull Mobility Firm Expands with Support from Business Growth West Midlands

A Solihull-based business making mobility aids has expanded with help from a regional support programme aimed at boosting small firms. Recent support from Business Growth West Midlands has helped the business invest in new equipment, including a specialist sewing machine and a 3D printer, and develop new products. The funding has also supported efforts to expand in the US by securing relevant accreditations.

The West Midlands Region Must Act Fast to Bridge its Net Zero Skills Gap Finds New Coventry University Report

The Net Zero Future Skills report, produced by Coventry University and funded by the West Midlands Combined Authority’s Clean Futures Innovation Accelerator, highlights the urgent need to build a resilient green skills ecosystem—particularly among SMEs, which form the backbone of the region’s economy. The report calls for short-term outreach and the creation of a Green Skills Centre, medium-term development of career pathways for young people, and long-term collaboration between government, industry, and education. It stresses that green skills are essential for both environmental and economic progress, but SMEs face barriers like limited time, resources, and training access. With coordinated investment and support, the West Midlands region can become a global leader in green industrialisation.

 

Construction Skills Crisis Threatens UK Housing and Net Zero Goals

City & Guilds’ Foundations for the Future report warns that critical skills shortages in construction jeopardise the UK government’s pledge to build 1.5 million homes and meet net zero targets. With 76% of firms struggling to recruit and 50,000 skilled workers leaving the sector annually, urgent action is needed. The report calls for targeted investment, improved training access, and a three-pronged strategy to attract new talent, support career changers, and upskill the existing workforce.

 

England’s Apprenticeship System Trails Global Peers, Sutton Trust Warns

The Sutton Trust’s A World of Difference report finds England’s apprenticeship system is falling short internationally, with many programmes offering poor-quality training and high dropout rates. Apprenticeships in England are often shorter and less structured than in countries like Germany or Ireland, and disadvantaged young people are underrepresented, especially at higher levels. The report calls for reforms to improve quality, access, and alignment with labour market needs to better support social mobility and economic growth.

 

Support Universities to Deliver Degree Apprenticeships

The Social Market Foundation (SMF) cautions that the UK’s skills crisis will intensify without backing universities to expand higher‑level apprenticeships. A new report highlights over 500,000 vacancies in advanced-skill sectors, while outdated funding models, bureaucracy and fragmented system planning restrict university involvement in degree apprenticeships. SMF urges reform of funding and regulation to unlock universities’ potential, aligning training with economic needs in health, housing, green tech and AI sectors.

 

Navigating Post‑16 Education: EPI’s Insight on Student Choices and Inequality

The Education Policy Institute (EPI) report highlights how constant policy churn, fragmented pathways, and limited apprenticeship access are undermining post‑16 education across the UK, deepening inequalities. Young people from disadvantaged backgrounds often follow non‑academic routes despite high aspirations, and regional disparities constrain access to key vocational pathways like T Levels and apprenticeships.

 

Top GCSE Achievers Flee Hometowns, Deepening Regional Inequality

A study by the Institute for Fiscal Studies reveals that 59% of top-performing GCSE students outside London move away by age 32, with nearly a third relocating to the capital. London’s concentration of high-paying, skill-matched jobs draws talent from across the UK, reinforcing regional disparities. Those who return home tend to have lower qualifications. Researchers warn that boosting local skills alone won’t close economic gaps—opportunities must be brought to underserved areas to retain talent.

 

Lifelong Education Institute Proposes New Partnership Model

A report from the Lifelong Education Institute, supported by Newcastle University, outlines a new model for Regional Education Partnerships to align schools, colleges, universities, businesses and local government in continuous skills development. Drawing lessons from pilots in the North East like IESAM, NEIoT and the Northern Accelerator, the report calls for unified regional voices, integrated funding and lifelong learning pathways to close skills gaps and support local economies.

 

Place-Based Employment Support Within A New Local Policy Ecosystem

A report by Localis explores how decentralising employment support can help tackle persistent worklessness and regional labour market disparities across the UK. Amid tighter public finances and a shift toward more targeted investment, the report highlights the need for locally driven strategies to boost productivity and economic inclusion. Drawing on evidence from stakeholders across the employment services ecosystem, it outlines how devolution, integration, and local commissioning can be harnessed to address labour market challenges in deprived urban, post-industrial, and coastal areas. The report aims to inform both practitioners and policymakers, while identifying gaps in the current policy framework.

 

An In-Depth Analysis of Education in England, Focusing on the Persistent Attainment Gap Between Disadvantaged Pupils and Their Peers.

A report by the Education Policy Institute (EPI) highlights that the disadvantage gap in England remains wide and is worsening in key areas, especially in early years and among pupils with special educational needs and disabilities (SEND). It warns that without urgent, systemic reforms, including better funding, early intervention, and support for disengaged 16–19-year-olds, many young people risk leaving education without essential skills. The report urges action to address the complex interplay of poverty, place, ethnicity, and gender, framing the issue as both a moral and economic priority.

 

Unequal Returns: The Case for Reforming the Pupil Premium

A report by The Centre for Social Justice reveals that despite £27 billion in Pupil Premium (PP) funding to improve educational outcomes for disadvantaged pupils since 2011, attainment gaps between disadvantaged pupils and their peers remain largely unchanged. The current PP model is criticised for using outdated, income-based criteria that overlook the complex realities of modern disadvantage. Post-pandemic data shows worsening outcomes for many disadvantaged pupils, and funding is often used to cover general school budget shortfalls. The CSJ calls for urgent reforms, including better targeting, improved accountability, and a comprehensive review to ensure PP funding delivers meaningful impact.

Health Dominates UK Spending Review as State Shifts Toward Care Focus

The Resolution Foundation’s analysis of the 2025 Spending Review reveals that health and social care will absorb 90% of the planned increases in day-to-day departmental budgets, with a £17.2 billion boost by the end of the Parliament. This marks a significant shift in the shape of the state, with health rising from 34% to 49% of Westminster-controlled spending since 2009. Other departments face real-term cuts, raising concerns about the long-term sustainability and balance of public services.

 

Reforming Welfare to Expand Mental Health Treatment

A report by The Centre for Social Justice calls for a major shift in how the UK addresses rising mental health-related benefit claims, which have surged by £20 billion since the pandemic. It proposes targeting support to those with the most severe conditions and reinvesting savings into expanding NHS Talking Therapies. The report also recommends broader reforms to tackle family breakdown, over-medicalisation, and youth mental health, arguing that active support and community-based care offer a more effective and compassionate alternative to passive welfare.

 

Obesity Costs UK £31 Billion in Productivity Losses, Nesta Report Warns

A Nesta report reveals that obesity and excess weight cost the UK economy £31 billion annually in lost productivity, driven by unemployment, reduced workplace performance, absenteeism, and early mortality. The total societal cost reaches £126 billion, with the burden falling disproportionately on deprived communities. The report calls for urgent, equitable interventions—such as healthier food policies and physical activity promotion—to curb rising costs and improve national wellbeing.

Government Unveils Planning Committee Reforms to Accelerate Housing Delivery

The UK government proposes sweeping reforms to planning committees in England via the Planning and Infrastructure Bill, introducing a national two-tier delegation scheme, mandatory training and certification for committee members, and limits on committee size to streamline decision-making. Applications compliant with local development plans may be handled solely by professional officers while strategic or contentious cases require committee oversight. Local democracy advocates warn the changes risk eroding councillor discretion and stifling community input.

 

Ladywood's Social Revival: From Challenge to Change

Ladywood, one of Birmingham’s most deprived wards, is experiencing an economic revival through targeted social-impact initiatives. Led by City-REDI and local partners, projects focusing on youth employment, community-led land acquisition, and wellbeing support are creating new pathways to opportunity. By embedding community voices in regeneration plans and building economic resilience from within, these efforts are enhancing both social cohesion and local prosperity—even amid broader uncertainty around large-scale redevelopment.

TfWM’s Passenger Incentive Programme Delivers 4.8m New Bus Journeys

The programme, funded through the Business Service Improvement Plan (BSIP), has boosted bus patronage by offering free and discounted travel to Excluded Access Groups (individuals facing financial or social barriers to transport, including care leavers, NEETs, veterans and carers) and Modal Shift Groups (individuals who primarily travel by car but could be encouraged to switch to bus, including workers, students, and event attendees). Providing 1 week passes allowed access to employment, social, and healthcare facilities has delivered 4.8 million new bus journeys, 46,342 individuals supported, 38,000 new Swift smartcard users engaged, and 459,657 weeks of travel provided.

 

Should Buses Be Re-Regulated? A Comparison of London and the Rest of Great Britain

Completed as part of a master’s degree at Edinburgh Napier University, research has been undertaken to look at the historical policy trends of the bus industry in Great Britain, the changes currently occurring across the industry, and a spatial and statistical analysis of five regions within Great Britain.

The research had four research questions:

  1. What are the underlying trends and regulatory reasons that led to London having a different regulatory system to the rest of Great Britain?
  2. What are the international comparisons or examples of bus industries?
  3. What are the alternatives to re-regulation methods such as franchising?
  4. What are the underlying factors that have led to moves towards bus re-regulation?

 

The research confirmed that for the West Midlands, challenges that have been faced elsewhere should be mitigated against. These include, the interaction between franchised and deregulated transport markets, for example cross-boundary services in/out of the West Midlands; The mechanism of how to change the network in the future to meet customer requirements; and the timing and format of new legislation being read in Parliament. For more information, please contact Adam Nudds.

 

Bus Passengers Still Rely on ‘Static’ Information When Travelling on the Transport Network

An extensive study was commissioned by TfWM to better understand bus passengers’ current and potential static information needs across their journey, to identify shortfalls in current provision and to explore ways of improving static information provision. A 3-step interconnected method showed that broadly, 1 in 5 use static information to plan bus journeys, meaning the majority tend to just use digital and dynamic sources; mostly Google Maps.  But despite many claiming not to need static information, 4 in 5 tell us they still use it at bus stops and interchanges across the West Midlands. And positively, no participants said they 'didn’t see' static information whilst on a recent journey – albeit 60% have experienced issues when using it.  Four key pain-points/areas for improvement were identified by the research – namely Information available; Vandalism/weather; Maps/diagrams; and Placement.  For more information please contact the Human Intelligence Team.

 

New £63m Boost for Britain's Electric Vehicle Revolution

Funding will help to build a fairer, cleaner future where every family can benefit from cheaper, greener transport. This represents a major boost (£63m) in charging investment to break down barriers to electric vehicle ownership and boost charging infrastructure across the UK, cutting costs for families, businesses and the public sector including the NHS.  It builds on £400 million invested in charging infrastructure and recent Zero Emission Vehicle Mandate updates to kickstart economic growth, create thousands of green jobs, and put more money in people’s pockets as part of the Plan for Change.

 

Public Transport Can Help Feelings of Social Inclusion

A report by the Social Market Foundation shows a correlation between car dependency and loneliness, particularly in rural towns showing that people who depend on cars to get around are more likely to feel lonely and disconnected than those who have access to good public transport.

 

Poor Transport Provision Creates Barriers to a Good Life

According to a report by the Institute for Public Policy Research, many people living on low incomes in the UK are limited in their ability to 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.

Alternative People Survey Reveals Public Appetite for Systemic Change

The 2025 Alternative People Survey finds widespread public support for reimagining governance and democracy in the UK. Respondents express strong interest in participatory decision-making, inclusive representation, and community-led solutions. The survey highlights a desire for more transparent institutions and a shift away from traditional political structures. It underscores growing public engagement with alternative models of leadership and collective action, reflecting a broader appetite for transformative change in how society is organised and governed.

 

Institute for Government Urges Local Budget Integration

The Institute for Government’s "Total Place 2.0" report calls on the UK government to pilot locally pooled public-service budgets in this summer’s spending review. Unlike siloed funding, the approach encourages cross-agency collaboration, data sharing and community engagement to improve outcomes and reduce waste. Early pilots—such as in Birmingham—delivered better services and long-term savings. It recommends initial trials, ongoing evaluation, reduced ring-fencing and ministerial support to expand by 2027.

 

State of the sector: Artificial intelligence

A report by the Local Government Association (LGA), based on a survey conducted between December 2024 and February 2025, explores how English councils are using Artificial Intelligence (AI). It found that 95% of responding councils are using or exploring AI, with generative AI being the most common type. AI is mainly applied in corporate functions like HR, finance, and cybersecurity, with growing use in adult social care. While councils are seeing benefits such as improved productivity and service efficiency, key barriers remain—particularly funding, staff capacity, and technical understanding. The report also highlights concerns around cybersecurity, misinformation, and public trust, and notes a rise in councils adopting specific AI policies to manage these risks.

 

Think Tank Urges UK to Embrace Open-Source AI in Public Services

A new report from the Social Market Foundation outlines how open-source AI could enhance UK public services by improving transparency, innovation, and value for money. Despite its potential, adoption remains limited due to skills gaps, funding misalignment, and institutional inertia. The report recommends policy reforms, including an “open-source test” in procurement, upskilling civil servants, and establishing a dedicated AI fund, to ensure open-source AI becomes a viable and supported option across government.

 

Labour’s First Year Marks Bold Steps Toward Further English Devolution

A report by the Institute for Government suggest the Labour government has made significant progress on devolution in its first year, publishing a white paper to standardise and expand powers across England. Key reforms include integrated funding settlements for Greater Manchester and the West Midlands, merging nearly 30 budget lines into flexible local pots. While fiscal devolution remains limited, with resistance from Whitehall and no new revenue-raising powers granted, the government aims to deepen local autonomy and improve strategic resource allocation.

 

Local Government Reform Could Slash Councillor Numbers by 90%, Experts Warn

A new report warns that local government reorganisation in England could cut councillor numbers by 90%, reducing around 12,000 roles to just 1,200—creating unsustainable workloads. Academics Colin Copus and Steve Leach argue this would severely weaken local democracy, overburden remaining councillors, and alienate communities. They criticise the government's Devolution White Paper for lacking clarity and ignoring the democratic implications of creating large unitary authorities, calling the move unnecessary, costly, and damaging to citizen engagement.

 

Unequal Devolution Deepens England’s Geographic Inequality

New City‑REDI analysis argues that fragmented and asymmetric devolution across England has entrenched rather than reduced regional disparities. Areas weakened both economically and institutionally—the so‑called “devolution periphery”—are falling further behind, as governance capacity remains lowest where it is needed most. By contrast, Germany, France, and Italy show how stronger regional institutions, sustained fiscal redistribution and long‑term industrial planning can promote genuine spatial rebalancing. England’s current reforms lack the coherence and equity required to reverse widening inequalities.

 

Fair Funding for England: New City‑REDI Blueprint to Reduce Regional Inequality

City‑REDI’s latest study (June 2024–March 2025) reveals that public funding in England is often misaligned with local spending needs—deprived areas receive less than they require, while affluent councils are over‑funded. The research outlines ten principles and policy reforms, including streamlined funding streams, stronger data and evaluation, greater devolution of resources, and locally led decision‑making. These reforms aim to better target disadvantaged regions, build capacity, and support equitable economic growth.

 

Rewiring Local Government for Citizen Engagement

A report by The Institute of Local Government Studies (INLOGOV), titled Rewiring Local Government for Citizen Engagement, calls for a fundamental shift in how councils engage with communities. It argues that citizen engagement must be central to local governance, not a side activity, especially amid structural reforms and declining public trust. The report outlines three key conditions for effective engagement: creating inclusive democratic spaces, investing in community capacity and infrastructure, and co-producing public services with residents. Drawing on UK and international examples, it highlights both progress and persistent barriers, urging leadership, investment, and support for councillors to embed engagement in everyday governance and strengthen local democracy.

 

Trust in Local Governance Hinges on Place-Based Engagement, LGA Report Finds

The July 2025 LGA report explores how trust in local governance is shaped by place-based relationships and community engagement. It argues that trust is not just institutional but deeply rooted in local experiences, visibility, and responsiveness. The report calls for councils to prioritise relational approaches, invest in local capacity, and embrace co-production to strengthen legitimacy and public confidence. It highlights the need for tailored strategies that reflect the unique dynamics of each locality.

 

Demos Report Calls for Democratic Renewal Through Participation and Institutional Reform

The July 2025 Demos reportUpgrading Democracy, argues that the UK’s democratic system is under strain and requires urgent renewal. It advocates for deeper citizen participation, stronger local governance, and institutional reforms to rebuild trust and legitimacy. Highlighting declining voter engagement and public dissatisfaction, the report proposes a shift towards deliberative democracy, inclusive policymaking, and a more responsive state that empowers communities and reflects diverse voices in decision-making.

 

Councils Could Unlock £276bn with Targeted Support, LGA Report Reveals

New research commissioned by the Local Government Association (LGA) finds that councils in England could unlock £276bn in untapped economic potential with better government support. Most of this potential lies in urban areas (£234bn), but rural regions also hold £42bn. The report urges clearer guidance on growth funds and calls for investment to tackle barriers like poor health and housing. It argues that councils are uniquely positioned to drive inclusive growth and improve local living standards.

 

Devolution as a Catalyst for Growth: UCL Paper Urges ‘Directed Improvisation’ Model

A UCL working paper by Michael Amery argues that devolution to Combined Authorities could be pivotal in achieving the UK Government’s mission to “kickstart economic growth.” Drawing on missions theory, the paper proposes a model of “directed improvisation” where local experimentation identifies successful economic strategies that can be scaled nationally. It recommends a multi-level governance system to empower local innovation, address regional disparities, and reshape the UK’s economic model for long-term resilience.

 

South Cambridgeshire Council Declares Four-Day Week Trial a Success

South Cambridgeshire District Council’s four-day week trial, analysed by universities including Salford and Cambridge, showed that 21 of 24 services improved or remained stable. Staff maintained full productivity in 80% of contracted hours with no pay cut. Recruitment rose by 120%, staff turnover fell by 40%, and reliance on agency workers dropped, saving nearly £400,000 annually. Public consultation revealed mixed views, but nearly half of residents supported the change, with most services unaffected.

Energy and AI Observatory

The International Energy Agency’s (IEA’s) Energy and AI Observatory is a first-of-its-kind platform that provides regularly updated data and analysis on the intersection of artificial intelligence and the energy sector. Developed with input from industry and tech partners, the Observatory tracks both the energy demands of AI technologies and the ways AI is being used to enhance efficiency, innovation, and resilience in energy systems. It complements the IEA’s Special Report on Energy and AI, offering a comprehensive view of this rapidly evolving field.

 

Climate Crisis Threatens School Learning Time Across England

A Department for Education study warns that by 2050, extreme heat and flooding could cause up to 12 days of lost learning annually in England. One in three secondary and one in five primary schools face high flood risks, while rising temperatures impair classroom focus. School leaders encourage urgent investment in climate-resilient infrastructure, including ventilation, insulation, and solar panels to protect pupils’ health and education from worsening climate impacts.

 

UK Urgently Needs Climate Adaptation, Warns Green Alliance

Green Alliance’s “Adapt to Thrive” report warns that the UK is dangerously underprepared for escalating climate risks—heatwaves, floods, droughts—and faces annual flood costs rising from £2.4 billion today to £3.6 billion by 2050. Around two‑thirds of current government adaptation measures are inadequate, the think tank says, urging immediate investment in “invest‑to‑save” interventions, joined‑up policy, resilient infrastructure and nature‑based solutions to protect communities and support economic growth.

 

Integrated Action Planned to Tackle Climate Change and Biodiversity Loss

A UK Government report outlines coordinated efforts to meet global climate and biodiversity commitments by integrating climate adaptation, clean energy rollout, rural support, marine restoration, and green finance. It highlights that every £1 invested in nature-based adaptation can yield up to £10 in benefits and warns delays risk a 12% GDP loss by 2030. The initiative aligns domestic policies—like the Paris Agreement, Global Biodiversity Framework, and National Adaptation Programme—with strategic scientific advice and international cooperation.

 

State of the UK Climate: Warming, Wetter Winters and Rising Seas

The Met Office’s annual “State of Climate” report reveals the UK is experiencing long-term warming trends, wetter winters (with six of the ten wettest winter half‑years since 1767 occurring post‑2000), and accelerated sea-level rise of 19.5 cm since 1901. The 2024 leaf-on season began seven days earlier than the 1999–2023 baseline, and frost days have declined by about 25% since the 1980s. These changes highlight accelerating climate pressures on ecosystems, infrastructure, and coastal resilience.

 

Cleaning Up London’s Air: A London Assembly 10‑Point Reform Plan

The London Assembly’s report "Clearing the Air" deploys hyperlocal pollution data—especially around schools—to reveal that NO₂ and PM₂.₅ peak during morning drop‑off and are driven largely by road transport particulates. It presents a ten‑point plan urging the Mayor to commit to bringing all schools within legal NO₂ limits, review polluting routes near schools, fund infrastructure changes, and launch targeted enforcement and public education to protect children’s health and cut air pollution across the city.

 

UK Government's 2024–25 Environmental Improvement Plan Progress Report

The UK government's annual progress report for the Environmental Improvement Plan (EIP23) covers the period from April 2024 to March 2025. The report assesses advancements toward the 10 goals outlined in EIP23, which include objectives such as enhancing biodiversity, improving air and water quality, and reducing chemical and pesticide exposure. It also discusses challenges and processes involved in monitoring legally binding targets set under the Environment Act 2021. An accompanying Outcome Indicator Framework data dashboard provides detailed insights into how the environment is changing in relation to these goals

 

Circular Economy Could Slash UK Emissions by 40% by 2032

A Green Alliance report argues that embedding circular economy principles—such as reuse, repair, and remanufacturing—into UK industrial strategy could cut greenhouse gas emissions by 40% by 2032. It calls for government action to prioritise resource efficiency, support circular business models, and align policy with net zero goals, warning that current strategies overlook the emissions tied to material use and waste.

 

MPs Propose Six-Step Plan to Launch England’s Circular Economy

The Environment APPG, chaired by Labour’s Andrew Pakes MP, has published a six-step strategy to support England’s first Circular Economy Strategy. The plan urges government action to improve resource efficiency, reduce waste, and stimulate green innovation. It highlights the economic and environmental benefits of circular practices and calls for stronger policy frameworks to accelerate adoption across sectors.

 

UK Sees Record Uptake of Electric Cars and Heat Pumps Amid Net Zero Push

The BBC reports that electric car and heat pump adoption in the UK has reached record highs, but the Climate Change Committee (CCC) warns more progress is needed to meet 2050 net zero goals. While electric vehicles are becoming more affordable, high electricity costs hinder wider heat pump use. The CCC urges the government to lower electricity prices and shift policy to support cleaner technologies, arguing that net zero is achievable and economically beneficial despite political opposition.

 

Warwick District Shines as UK Councils -including WMCA- Lag in Net Zero Race

Warwick District Council has emerged as a regional leader in climate action, topping the Midlands in Climate Emergency UK’s latest scorecards thanks to initiatives like solar-powered refuse trucks and community energy support. However, the national picture is less optimistic: the average council score rose only slightly to 38%, with most councils falling short of their net zero targets. Campaigners are urging the UK government to make climate action a fully funded legal duty for all councils.  As for the West Midlands Combined Authority, it scored 59%, a drop of 6 percentage points from 2023 with the greatest decline seen in the “collaboration and engagement” score. There was, however, an improvement of 10 percentage points for “planning and diversity” – making WMCA one of the most improved councils in this section.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows that business investment is on the rise in the UK. There has been a real-terms increase of 6.1% since the same period last year, giving a strong signal of future growth in the UK economy. In another good sign, commercial rents have risen in Birmingham despite the rise in business rates, suggesting growing demand for space. Still, NEET (not in education, employment, or training) figures rose by 1.0 percentage point between 2024 and 2025 to 6.6% of the 16-17-year-old population in the WMCA area, further emphasising the importance of the priority for youth employment in the West Midlands Growth Plan. Find these figures and more in the annex.

 

Ladywood Tops West Midlands for Benefit Claims, New Data Reveals

Ladywood in Birmingham has the highest number of benefit claimants in the West Midlands, with 22,479 households receiving Universal Credit and over 12,000 still on legacy benefits. It also leads in the number of school-age children in Universal Credit households, totalling 19,380. The figures highlight significant regional disparities, with areas like Sutton Coldfield and Solihull showing much lower claimant numbers. The data underscores ongoing challenges in tackling poverty and supporting families across the region.

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