West Midlands Combined Authority launches bid for power

Council leaders across the Black Country, Birmingham and Solihull met today to set out their bid to the government for devolved powers to oversee transport spending, skills and attracting investment.

They also plan to set up three 'commissions' to drive forward the 'West Midlands Engine' - a phrase adopted by George Osborne to reflect growth in manufacturing and other trades.

The West Midlands Productivity Commission will try to address the lack of investment in businesses' plant and machinery as well as public infrastructure.

"The West Midlands has not been immune from the productivity gap," the document says. "The total output gap is some £16 billion which translates to output of £20,137 per head, some £4,000 lower than the national average."

The West Midlands Land Commission will work to get land for housing and business use and a West Midlands Commission on Mental Health and Public Services will try to improve mental health services which council leaders say have not been a high enough priority for the NHS.

Sandwell Council leader Darren Cooper said: "There is still a lot more work to be done but we have come a very long way in six months."

Setting out their plans to work together the seven founding council leaders, including all four Black Country boroughs, said they would work have a joint plan for the economy and a joint 'investment vehicle' to try to get former industrial 'brownfield' sites brought back into use.

There will also be a joint programme on skills.

The document says: "The skills deficit across the region is reflected in the high level of unemployment (9.3 per cent) across the seven metropolitan authorities. If unemployment across the West Midlands was to fall to match the England average there would be some 14,500 less claimants resulting in a saving in excess of £35 million per annum in benefit spending."

The combined authority has proved controversial before it is even launched with critics in the Black Country concerned it will mean the creation of a 'Greater Birmingham'.

That name has already been rejected by council leaders in favour of WMCA.

Meeting in Coventry today council leaders unveiled a 'statement of intent' to show the Treasury what they intend to do together.

Eventually as many as 20 councils could be involved including districts such as Cannock Chase, Lichfield and Wyre Forest if they agree to join in.

Emma Reynolds, Labour MP for Wolverhampton North East and shadow secretary of state for communities and local government, said: "This is major step forward that could attract hundreds of millions of pounds of investment to the region. It will bring greater opportunities and jobs to Wolverhampton and the wider region, and help rebalance the national economy.

"Labour has been calling at a national and local level for the devolution of greater power and resources and this paves the way for that to happen. The Government must now move swiftly to devolve power and resources in areas like housing, transport, skills and employment.

"I congratulate all the councils involved but particularly the Labour leaders who have led the way in bringing together the councils in our region."

Andy Street, chairman of the Greater Birmingham & Solihull Local Enterprise Partnership (GBSLEP), said: "This is an important first step in the creation of a Combined Authority for the West Midlands region, covering the three LEP geographies fully. The GBSLEP intends to play its full part in ensuring that the private and public sectors continue to work together to gain further economic private sector-driven growth - what we call 'Economy Plus'. In doing so we trust this will lead to further public sector reform and, in due course, the gaining of further devolved powers from Government. Our aim must be to jointly create an economy that is the strongest outside London and one that contributes fully to the Government's vison of a wider 'Midlands Engine for Growth'".

However the debate over the name continues.

Edgbaston Labour MP Gisela Stuart said on Twitter: "West Midlands Combined Authority. Great idea but let's call it what it is #GreaterBirmingham."

And West Midlands UKIP MEP and Dudley councillor Bill Etheridge accused council leaders of a 'stitch-up'.

He said: "No-one has voted for this. The councillors involved suggest they were given a mandate by people in the general and local elections but hardly anyone was talking about it on the doorstep.

"This is supposed to be about economic growth but it's just growth in bureaucracy."