£4 billion 'vote of confidence' deal to spark region's revival

The deal – announced today by West Midlands Mayor Andy Street – will run for seven years and is the first the firm has done with a combined authority.

It will be kickstarted with a new development of 234 homes at The Junction, Oldbury, an old brownfield site that has been derelict for two decades.

Bosses say plans for developments featuring hundreds of energy efficient homes will help the region meet its housing targets and also protect the green belt.

The funding will also target new manufacturing sites, research and development, and potentially schools and health centres.

Mr Street said the deal was a "prime example" of how the region was "getting on and delivering levelling up."

"This major investment will help regenerate long neglected areas across the West Midlands, provide affordable homes in the communities where the need is most felt, and supercharge economic growth in the years ahead," he said.

"It is a tremendous vote of confidence in the future of our region from one of the world’s biggest investors, and I am delighted L&G came to the table and agreed such a monumental commitment with us.

“I cannot wait to see this investment rolled out, projects underway, and the lives of our residents changed for the better."

Sir Nigel Wilson, CEO of L&G, said the firm had been investing across the UK for more than a decade with projects that had delivered "terrific economic and social results".

He added: "The West Midlands economic plan, resources and skills make it an attractive destination for trade and investment from across the world; our role in this is to put UK funds including pension savings to work here so UK savers benefit from UK prosperity."

L&G manages £1.4 trillion as the UK's largest investor. It has financed £30bn worth of projects outside London, including £2bn in the WMCA area.