Autumn Statement: New West Midlands Investment Zone could create 30,000 jobs

Chancellor Jeremy Hunt handed the West Midlands a major economic boost in his Autumn Statement by unveiling plans for the Investment Zone, with the power to drive up to £5.5bn of growth .

The zone will benefit from a mix of tax incentives, direct funding and business rate retention.

It will focus on driving growth in advanced manufacturing, green industries, health-tech and underlying digital technologies.

The Investment Zone itself will cover the whole West Midlands but will be powered through three specific sites – Wolverhampton Green Innovation Corridor – creating new green industries and skills through a partnership between the city council and university – as well as Coventry-Warwick Gigapark and Birmingham Knowledge Quarter.

There was further good news with the statement confirming the go-ahead of a single pot of funding for the West Midlands, leaving local leaders to decide for themselves on how best to use the money to help level up the region.

The Single Settlement, one of several commitments in the region’s Deeper Devolution Deal agreed in March, will give the West Midlands unparalleled control over spending, similar to the Scottish and Welsh Governments.

Confirmation of the Single Settlement will give local leaders new autonomy to decide for themselves on how to use the money over the long-term, free from micromanagement by Whitehall.

Andy Street, Mayor of the West Midlands and chair of the West Midlands Combined Authority, welcomed the 'serious and substantial announcements set out by the Chancellor in the Autumn Statement'.

"The responsible and forward-thinking decisions he has taken will support households and businesses, boost growth and investment and create job opportunities," he added.

The West Midlands Investment Zone has the potential to initially attract more than £2bn of new investment into the regional economy and a further £3.5bn over the lifetime of the zone, creating more than 30,000 jobs by 2034.

The Wolverhampton Green Innovation Corridor will receive millions of pounds to support the construction of key infrastructure needed to establish the site.

Councillor Stephen Simkins, the WMCA's portfolio holder for economy and innovation and leader of City of Wolverhampton Council, said: “The Green Innovation Corridor will build on Wolverhampton’s growth as a centre for sustainable construction and create skilled jobs for local people.

"A shift of power from Westminster to Wolverhampton will enable us to capitalise on emerging green industries.

“For too long the region has been held back by the centralisation of power. Now that we have the single settlement fund, we can determine our own economic future, and I know the people of Wolverhampton will want to see good, green, and most importantly, decent advanced manufacturing jobs in the Black Country.”

Chris Romans, EY’s Head of Tax in the Midlands, said: “The announcement of new Investment Zones in the West and East Midlands is positive news for the region. These new zones are anticipated to generate £2.3bn of private investment and create 34,200 jobs over the next 10 years.

“The West Midlands’ Investment Zone, which will cover Birmingham, Wolverhampton and Coventry, will focus on advanced manufacturing - a high-value sector, which is enormously important for both regional and UK growth.

“Similarly, the East Midlands’ Investment Zone will focus on advanced manufacturing and green industries across Nottinghamshire, Derby and Derbyshire with benefits felt across the wider region.

“Both zones will play an important role in not only creating new jobs but also upskilling workers across the value chain.

“This news, in conjunction with the announcements made earlier on in the year during the Spring Budget around the freezing of rates for businesses moving into the zones, highlights the potential of investment for businesses in the region.

“We look forward to hearing more details about the two zones, and how they will benefit the region’s businesses.”

Neil Rami, chief executive of the West Midlands Growth Company, added: “The confirmation of a new investment zone in the West Midlands – incorporating sites in each of our major cities of Birmingham, Coventry and Wolverhampton – is yet another vote of confidence in the region’s strong innovation credentials and research assets.

“Key to maximising the success of this programme will be bringing high-value investment from around the world into these sites. We are making good headway on this already through a new West Midlands international strategy, and this announcement will enable us to accelerate our progress and ensure it benefits as many people as possible from across our region.”