Wise to the Midlands: July Trends and Insights

Study confirms UK Firms’ Investment Decisions Hampered by Informality and Uncertainty

A UK-wide study of 1,600 firms by the Enterprise Research Centre finds weak productivity partly reflects informal investment practices, heavy reliance on internal funding, and uncertainty from COVID-19, Brexit and cost pressures (no regional breakdown provided). Most firms pursue growth and efficiency over productivity or social goals, with planning often lacking and few targeting clear returns. Policy should strengthen support for investment planning, advice networks and skills.

The Manchester Model: What Foreign Inward Investment Reveals About the UK’s Most Productive City Outside London

A new Productivity Institute report makes the case that Manchester has become the UK’s most productive large city outside London, driven by strong foreign investment focused on high-value sectors like tech and R&D. It attracted significantly more projects and jobs than Birmingham, with a higher share of greenfield investment. The “Manchester Model” combines devolution, transport-led agglomeration and university–industry links. Birmingham is referenced as a key comparator (alongside Leeds); contrasting Manchester’s tilts toward high-value services, greenfield investment and R&D with Birmingham’s tilts toward M&A, manufacturing, consumer facing and logistics investment, which is described as a “different but equally legitimate inward-investment profile”.

How Has Leaving the EU Changed UK Government

A decade after the EU referendum, analysis by the Institute for Government highlights Brexit’s less dramatic but persistent economic drag and its failure to catalyse meaningful reform. While it drove policy innovation and regulatory autonomy, progress has been limited and often reversed. The period has seen increased executive power, political instability and pressure on devolution. Brexit has reshaped party politics and foreign policy, leaving government facing challenges in restoring economic performance, public trust and institutional effectiveness.

OECD Finds Local Identity Key to Driving Economic Growth and Place Renewal

An OECD report argues that local identity, pride and storytelling are critical yet often overlooked drivers of economic development and regeneration. It finds that how places are perceived – shaped by culture, heritage and community narratives – can influence investment, talent attraction and social cohesion. The report urges policymakers to integrate place branding and community engagement into development strategies, warning that without this, physical and economic interventions alone may fail to deliver lasting, inclusive transformation.

Demos Calls for “Economies of Coordination” to Boost Growth in Left-Behind Areas

A Demos report argues weak growth and youth opportunity in deprived areas stem from poor coordination between local businesses and institutions. It finds most SMEs fail to collaborate due to resource and information barriers, limiting productivity. Proposing “economies of coordination,” it urges better sharing of data, skills and investment across local networks, estimating this could significantly raise productivity, create jobs and unlock up to £28bn in economic growth.

The Government’s Early Years Target is Doing Little to Incentivise the System to Focus on Boys From Low-Income Families.

A new Institute for Government report warns nearly 60% of boys from low-income families are not school-ready by age five, with current targets failing to incentivise support for this group. It highlights systemic issues including weak cross-government coordination, strained local services and childcare market failures. For instance, it highlights that current Government targets are not designed to incentivise improvement for specific disadvantaged groups, meaning overall progress could be driven without addressing the persistent underperformance of boys from low-income families—revealing systemic weaknesses-revealing systemic weaknesses in policy-making that can unintentionally overlook and deprioritise certain groups. Recommendations include stronger central governance, improved local data use, clearer ministerial direction and reforms to childcare markets to ensure disadvantaged boys are not left behind in early years delivery.

Sutton Trust Urges Shift to Socio-Economic Focus in Inequality Debate

A Sutton Trust report argues UK inequality debates should prioritise socio-economic disadvantage alongside race, highlighting how regional disparities and multi-generational poverty drive poor outcomes. It warns against pitting groups against each other, noting similar challenges across ethnicities and classes. The report calls for more nuanced, data-led policies to improve social mobility, stressing that tackling class-based inequalities is essential to addressing wider gaps in education, employment and opportunity.

Think Tank Proposes Early State Pension Access to Tackle Intergenerational Inequality

A Social Market Foundation (SMF) report proposes a “Citizens Advance” allowing younger adults to access around £12,500 from their state pension early in exchange for delaying retirement payments. Aimed at reducing reliance on the “Bank of Mum and Dad,” it seeks to address widening wealth inequality and barriers to homeownership. The report finds strong public support, arguing the policy could boost opportunity while remaining fiscally sustainable over time.

Rise of ‘News Deserts’ Fuels Misinformation and Erodes Trust, SMF Warns

Another SMF report released this month finds declining local journalism is driving increased reliance on social media, where misinformation is widespread. Analysis shows “news deserts” experience significantly higher levels of false information, especially around elections and local issues, undermining trust in institutions. The report highlights how weak local news ecosystems allow misleading content to flourish and calls for stronger support for reliable local journalism and measures to combat online misinformation.

UK Unveils Strategy to Strengthen AI Hardware and Semiconductor Capability

The UK government has set out a long-term plan to boost AI hardware capabilities, focusing on semiconductors, advanced chips and emerging technologies. It aims to support domestic firms to scale, build strategic resilience in key supply chains, and link innovation to real-world deployment. Emphasising global partnerships and sovereign capability, the strategy seeks to secure economic growth, reduce reliance on external technologies, and position the UK competitively in the global AI economy.

MPs Warn Government ‘Flying Blind’ on Regional Innovation Spending

MPs have criticised major gaps in government data on innovation policy, warning it is “impossible” to assess impact or target funding effectively. While ministers accept the need for improved data and plan a new cluster map and funding portal, they rejected calls for a national evaluation framework. The Science Committee cautions that without more robust monitoring, the government risks undermining ambitions to drive innovation-led growth and leverage private investment.

Resilient West Midlands

Latest intel from the Economic Intelligence Unit (EIU) shows UK growth continuing into early 2026, but momentum faltered with a slight GDP contraction in April and weaker outlooks ahead. In the West Midlands, business activity declined further, with PMI falling to 47.2 and manufacturing confidence dropping below the national average. Despite this, large regional firms reported strong turnover and job growth, while new investment and tech deals highlight ongoing resilience even as global uncertainty dampens exports and investment. Read the full analysis in the annex.

Government Consults on New Higher Education Regulator Fee Model

The government has launched a consultation on reforming the Office for Students’ fee model, proposing changes to annual registration charges and new fee categories to improve proportionality and transparency for higher education providers. The reforms aim to better align costs with regulatory activity while supporting a diverse sector, with responses expected to shape future funding arrangements for England’s higher education regulator.

Youth Employment ‘Drought’ Deepens as Starter Jobs Collapse Across UK

A Work Foundation report finds over one million young people are NEET, with entry-level jobs down 49% and shortages most acute in the Midlands and North. Place-based barriers, including transport, education disruption and weak local labour markets, are worsening outcomes. It calls for stronger devolution, including powers for authorities such as the West Midlands Combined Authority to align skills, transport and employment support to tackle the NEET problem.

Low-Paid Workers Lack Bargaining Power Despite New Employment Rights Reforms

A Resolution Foundation report finds workers in low-paid sectors such as cleaning, hospitality and warehousing have limited power over pay and conditions, with most unable to negotiate wages and many reluctant to challenge unfair treatment. Around 62% feel unable to find comparable jobs locally, constraining mobility. The findings underline the importance of the Employment Rights Act while calling for stronger sectoral bargaining, improved management practices and policies to expand workers’ options and voice.

OECD Urges Action on Rising School Attendance Problems

An OECD report warns school attendance problems are increasing globally, particularly post-Covid, driven by complex factors across family, community and education systems. Poor attendance is linked to lower attainment, wellbeing issues and higher dropout risk. The report calls for clearer definitions, better data and coordinated policy responses, highlighting the need for prevention and early intervention to ensure inclusive education systems and avoid wider social and economic impacts.

UK Employers Struggle to Keep Pace with Rapid Growth in AI Skills Demand

The Skills for Artificial Intelligence (SKAI) programme finds AI adoption is outpacing workforce skills, with over 44% of organisations using AI daily but lacking structured training. Barriers include limited capacity, cost and unclear provision. Effective training should be practical, accessible and integrated into work. The report emphasises that building AI capability requires ongoing, role-specific learning approaches rather than one-off training, tailored to sector needs and organisational contexts.

IPPR Urges Stronger Worker Power to Shape AI’s Impact on Jobs

An IPPR report warns AI could either boost productivity or deepen inequality depending on how it is deployed, arguing outcomes will hinge on workers’ power. It calls for stronger union rights, mandatory consultation on AI adoption, and new “portable benefits” to support workers across jobs. Without reform, gains risk concentrating among firms, while workers face disruption, weaker job quality and limited influence over how AI reshapes the labour market.

Child Hunger Rising Across UK Despite Policy Reforms

A Social Market Foundation report finds UK child food insecurity remains high, with 15% of parents lacking enough food and 1 in 5 reporting impacts on children, including meal skipping and hunger. Pressures from the cost of living, energy bills and low incomes are key drivers. While policies such as free school meals and holiday programmes help, gaps remain, prompting calls for stronger welfare support and a cross-government strategy to tackle underlying poverty.

Poor Housing Costs NHS £1.5bn Annually, Report Finds

A Royal College of Occupational Therapists report estimates poor housing costs England’s NHS £1.5bn each year, driven by preventable illness and injury. It highlights widespread issues, with millions living in non‑decent or inaccessible homes, and calls for housing to be treated as a core health intervention. The report urges stronger integration between housing, health and social care, alongside greater investment in prevention and accessible homes to reduce demand on services.

“Planning by Committee” Blamed for Limiting Impact of National Planning Policy

A Planoraks analysis argues successive National Planning Policy Frameworks have failed to significantly influence housing approvals or plan-making, largely due to decisions being led by local planning committees with strong local political incentives. It highlights a structural misalignment between national housing needs and local impacts, limiting delivery, and suggests centralisation or more strategic decision-making may be needed to make national planning policy effective.

New ‘Decent Neighbourhood Standard’ Piloted in North Birmingham to Drive Local Regeneration

A Centre for the New Midlands report produced with Social Life, a specialist research centre, and Witton Lodge Community Association (WLCA), proposes a “Decent Neighbourhood Standard” to improve safety, opportunity and wellbeing, piloted in Erdington, Birmingham. It highlights strong community assets alongside challenges such as crime, poor environments and deprivation, and calls for resident-led regeneration, stronger accountability and sustained investment. The framework aims to align local policy and funding with lived experience, offering a practical model for place-based renewal across Birmingham and similar urban areas.

Immigration Rules Driving Rise in Homelessness, IPPR Warns

An IPPR report finds immigration status is a major driver of homelessness in England, with migrants and refugees facing restricted access to housing and support. Faster asylum decisions risk worsening the problem by pushing people out of accommodation before they can secure housing. The report highlights systemic gaps, including “no recourse to public funds” rules and short move‑on periods, and calls for reforms to prevent destitution and reduce pressure on local services.

Cycling & Walking Investment Strategy

The Department for Transport’s Cycling and Walking Investment Strategy 3 (CWIS3) sets out a long-term vision to make walking, wheeling and cycling the default choice for short journeys, with a target of 55% of urban trips by 2035. It emphasises integrated local networks, school travel and safety, supported by significant national funding delivered through local areas. For the West Midlands, the strategy aligns strongly with ambitions to expand active travel corridors and reduce car dependency, while reinforcing the importance of consistent long-term investment and local delivery capacity

German Cities Offer Lessons for Fixing England’s Transport System

An LSE brief highlights how German cities have reduced car reliance through integrated planning, strong local governance and prioritising cycling and public transport, unlike England where travel patterns remain largely unchanged. It warns UK ambitions will falter without deeper devolution, better land-use alignment and integrated systems, urging mayoral authorities to lead coordinated transport and growth strategies.

London Assembly Probes Impact of Driverless Taxis Ahead of Potential Rollout

The London Assembly is investigating the rollout of autonomous passenger vehicles, with trials underway and potential commercial services from 2026. The review will assess regulatory roles, safety, public trust and impacts on jobs, congestion and transport goals, alongside risks such as cyber security and private sector dominance. Findings will inform how these technologies align with wider transport strategies, including mode shift and traffic reduction targets.

Changing Work/Places: Remote Work

This research finds that fully remote work is contributing to a modest shift towards rural living, but hybrid working—now dominant—keeps most workers linked to cities. There is little evidence of a coastal revival, and overall remote work is reinforcing existing economic geographies rather than redistributing growth. For the West Midlands, this suggests that while flexible working may affect travel demand and peak patterns, it is unlikely to drive large-scale population redistribution, reinforcing the need for continued investment in urban centres and transport connectivity.

Evaluating Local Transport Interventions Through Mobile Network Data

This study demonstrates how mobile phone GPS data can provide a more comprehensive evaluation of schemes such as Low Traffic Neighbourhoods (LTNs). Findings show reduced car use, increased walking and greater local activity, with limited evidence of traffic simply being displaced. The approach offers valuable insights for UK city regions, including the West Midlands, in assessing place-based interventions and strengthening the evidence base for schemes that support mode shift and neighbourhood-level change.

Non-EAPC (Electronically Assisted Pedal Cycles) Electric Bikes

This briefing highlights rising safety and regulatory challenges posed by illegal high-powered e-bikes that fall outside EAPC rules but are widely used without licensing or insurance. These vehicles are increasingly used in urban environments, including for delivery work, creating risks for pedestrians and other road users and complicating enforcement. For metropolitan areas such as the West Midlands, the issue has implications for road safety policy, enforcement capacity and maintaining confidence in active travel and micromobility.

Public Sector Urged to Embrace ‘Outside-In’ Innovation for System Reform

A new policy paper by the Local Policy Innovation Partnership (LPIP) argues public sector transformation depends on learning from social entrepreneurs and community actors operating between formal systems and lived experience. While institutions remain essential, rigid governance can limit innovation and adaptation. The report highlights the need for cultures that support experimentation, integration of community insight, and relational approaches, warning that without this “outside-in” learning, reforms such as devolution and neighbourhood health may fail to deliver meaningful change.

Calls for Funding Reform to Unlock Preventative Public Services

A Demos report argues that while prevention can reduce inequality and long-term public service costs, current funding systems prioritise short-term demand and siloed spending. Initiatives remain fragmented and small-scale due to structural barriers in budgeting, accountability and political incentives. It calls for reforms including new accounting frameworks to track preventative spending, warning that without systemic change, government ambitions to embed prevention will continue to fall short.

Report Calls for Fiscal Devolution to End ‘Begging Bowl’ Funding Model

A new Re:State paper argues England’s highly centralised tax system is undermining devolution, leaving regional authorities reliant on Whitehall and limiting their ability to drive growth. It calls for greater fiscal powers, linking local revenue to economic performance and improving accountability. The report positions Treasury reform as critical to genuine devolution, warning that without fiscal autonomy, local leaders will lack the tools needed to deliver transport, housing and economic priorities.

Localis Warns Devolution Risks “Ambition Outpacing Readiness” Without Strong Local Capacity

A new Localis report argues England’s devolution and local government reorganisation risk underperformance unless institutions build delivery capability alongside new powers. It calls for stronger place‑based governance, clearer roles between authorities, and greater fiscal devolution tailored to local contexts. Emphasising leadership, collaboration and accountability, it warns uneven institutional maturity and persistent central control could limit regional growth and effective service delivery unless reforms strengthen local capacity and scrutiny.

Devolution Risks Failure Without Stronger Local Capacity and Public Accountability

Robert Pollock (Chief Executive of Cambridge City Council) argues that England’s push for devolution is being undermined by a lack of investment in the institutional and civic infrastructure needed for effective local governance. He contends that without stronger administrative capacity, accountability and public engagement, new powers risk widening a “democratic deficit,” with local bodies unable to meet expectations or deliver growth, ultimately weakening trust in devolved institutions and limiting long‑term economic and social outcomes.

Ministers Highlight Frustration with Civil Service Pace and Delivery in New Review

An Institute for Government report drawing on interviews with nearly 200 ministers finds civil servants are valued for impartiality, expertise and adaptability, but criticised as slow, risk‑averse and inconsistent on delivery. Ministers stress the need for clearer priorities, stronger leadership and better collaboration to make the relationship work. The report warns that strained trust, high turnover and weak delivery capability risk undermining effective government unless both ministers and officials rebuild how they work together.

Government Appoints Expert Panel to Guide Use of AI in Youth Justice Prevention

The Ministry of Justice has appointed an independent advisory panel to guide the use of machine learning and advanced analytics in youth justice. Drawing members from academia, local government, and industry, the panel will advise on how data can support early intervention and crime prevention. It forms part of wider reforms to modernise youth justice, aiming to ensure emerging technologies are used responsibly and effectively to improve outcomes for young people.

UK Sees Record Solar Growth as Clean Power Push Accelerates

The UK has achieved record solar deployment according to the UK Government, with 269,000 installations in 2025 and over 2 million systems nationwide, driven largely by households adopting rooftop panels to cut bills and boost energy security. Recent growth reflects government-backed clean power policies, falling costs and geopolitical pressures, with solar saving families up to £480 annually and forming a central pillar of efforts to reduce reliance on fossil fuels and strengthen resilience.

Government Announces £30m Fund to Restore Wildlife Habitats Across England’s Protected Landscapes

The UK Government has launched a £30 million Wildlife-Rich Habitat Fund to restore habitats across National Parks and protected landscapes, supporting species recovery and helping meet targets to protect 30% of England’s land by 2030. Projects will create and restore thousands of hectares through partnerships with farmers and local groups, forming part of wider Environment Act commitments to reverse biodiversity loss and strengthen environmental resilience.

EV Charging Sector Set to Deliver £15bn Boost but Hinges on Policy Stability

A ChargeUK commissioned study finds EV charging could contribute £15.5bn to the UK economy by 2035, supporting up to 334,000 jobs and attracting £30bn investment. Public chargers reached 120,000 in 2026, with strong projected growth. However, the largely pre-profit sector depends on clear policy signals, particularly the ZEV mandate; weakening it could halve investment, while strengthening it could increase funding by 40%, making government decisions pivotal to future growth.

Net Zero Economy Now Supports Over a Million UK Jobs and £105bn in Growth

A new report finds the UK’s net zero economy supports around 1.1 million jobs and generates roughly £105bn annually, showing it is now a major part of the industrial base. Spanning energy, manufacturing and services, the sector delivers higher productivity and wages than average and is driven largely by small businesses. It highlights strong regional benefits and a growing investment pipeline, positioning net zero as central to future economic growth.

Think Tank Proposes Bill Cuts in Exchange for Tougher Energy Cost Controls

A Centre for British Progress report argues the government should shift electricity levies into general taxation to cut bills and accelerate electrification, saving households about £115 annually. In return, it calls for stricter cost discipline, competition and limits on subsidies in future energy infrastructure and contracts. The report warns that without reform, inefficiencies and “rent‑seeking” will keep costs high, undermining long‑term energy security and affordability.

Data Centres Could Accelerate UK Decarbonisation Despite Rising Energy Demand

A Centre for British Progress report argues data centres need not undermine climate goals if located in low‑carbon energy systems like the UK’s. While globally data centres often increase emissions, Britain’s cleaner grid means they produce far fewer emissions and can help fund and accelerate renewable energy expansion. The report suggests growing demand could support investment in green infrastructure and reduce global emissions if capacity is built domestically rather than in higher‑carbon countries.

Millions of UK Homes Face Growing Subsidence Risk from Climate Change, Study Warns

New British Geological Survey research finds climate change could significantly increase subsidence risk as hotter, drier summers cause clay soils to shrink. By 2070, up to 4.2 million UK properties could be affected under high‑emissions scenarios, with London and the South East most exposed. The report highlights rising insurance costs and calls for better planning tools and mitigation to manage growing risks to homes, infrastructure and financial stability.

Nature Inequality Deepens as Planning Loopholes Hit Poorest Areas

A Wildlife and Countryside Link report finds 7.4 million people in England lack access to nearby nature, with deprivation strongly linked to biodiversity scarcity. It warns planning exemptions to Biodiversity Net Gain rules disproportionately affect poorer communities, risking further environmental decline. Without reform, policies could entrench “nature poverty,” worsening health and inequality, and creating urban areas with minimal access to green space.

WMCA Economic Dashboard

The latest dashboard prepared by the EIU shows the number of FDI projects in the WMCA area remained steady in 2026 at 60 (2025: 58). This was the fourth highest figure for an ITL2 region. Business sentiment is low, with the business activity index dropping below 50, suggesting more firms were contracting than expanding in May. The job market remains subdued with 40,882 new job postings in the same month. Find these figures and more in the annex.

Age Demographic of the WMCA Area Changing, but Not All in the Same Way

Data available on the WISE Data Profiler shows the changing demographics of our region. Since 2010, the population that is 65 or older has increased in Dudley and Solihull from 18.4% and 19.0% to 20.2% and 21.3% respectively in 2024. At the same time, the elderly population in Coventry has been in decline, going from 14.8% to 13.9% over the same period. The local authority with the lowest rate of people 65+ is Birmingham at 13.0% in 2024, with Solihull being the highest.