Cash boost for the West Midlands in Chancellor's coronavirus Budget
The Chancellor outlined a series of cash injections for the West Midlands in a Budget he insisted would bring "stability and security" to the economy in the wake of the coronavirus crisis.
Rishi Sunak said he was turning on the spending taps in response to the illness, with funding for public services, citizens and businesses set aside as the virus becomes more widespread and restrictions on activities are imposed.
In a statement that was rewritten in response to the Covid-19 outbreak, he announced a £30 billion package to stimulate the economy, including scrapping business rates for retail, leisure and hospitality firms over the next year, and £6bn of new funding for the NHS.
He also promised £27 billion for road improvements, describing it as "the biggest ever investment in strategic roads and motorways".
The West Midlands is set to get a minimum of £500m for transport, with £20m committed to the Midlands Rail Hub and £160m funding confirmed for the Eastside Metro extension in Birmingham and phase one of the Sprint bus rapid transit network.
The region will also get a chunk of a £400m fund to build homes on brownfield sites and protect the green belt, with Mr Sunak telling the Commons that the West Midlands had led the way in such schemes.
The Chancellor also announced £1.5bn for technical education, a £21.3m fund to boost businesses involved in trade and tourism for the 2022 Commonwealth Games and a £2.5bn pothole fund, a share of which will be allocated to fix the region's roads.
A freeze in fuel duty was confirmed until at least April 2021, while £1 million was set aside for the Bridgnorth Flood Alleviation Scheme, which comes as part of a £5.2bn investment on flood defences over the next six years.
Meanwhile Mr Sunak said he had abandoned a planned rise in duty on spirits and would freeze the rates on beer, cider and wine.
"Pubs are at the centre of community life but too many have closed over the past decade," he said.
"For only the second time in almost 20 years that is every single one of our alcohol duties frozen."
Tory MPs have hailed the Budget, claiming it would "get things done" for families in the West Midlands.
Wolverhampton North East MP Jane Stevenson, said: "This is the first Budget delivered outside of the EU for more than five decades.
"It sets out a clear, one nation, path for the Government to get things done and is going to be a real benefit to people across the West Midlands."
West Midlands Mayor Andy Street, said: "The Chancellor did what the country needed in terms of responding to the economic consequences of coronavirus, and he also showed his confidence in the West Midlands with further investment across the critical areas of transport, housing and skills."
Dudley North MP Marco Longhi, who lobbied the Government over fuel prices, said: "The fuel duty freeze will make a huge difference to hard-working people in Dudley and the rest of the Black Country who rely on their cars."
Pat McFadden, the Labour MP for Wolverhampton South East, said the Budget marked "a big change in direction after years of cutbacks".
"After many years of low interest rates it reflects the argument that this time around, more of the heavy lifting has to be done by government spending rather than by monetary policy and central banks," he added. "But you have to ask, if these spending increases are possible now because interest rates are low, why were they not possible years ago when interest rates were just as low?
"Places like the Black Country have been hit hard by cuts in services and there is a big backlog of regeneration funding needed. This looks like the beginning of a repair job on previous decisions made by the Conservatives.
"The coronavirus package is welcome support for the NHS, individuals and businesses but there is still a need for a more co-ordinated international response. This virus won’t respect borders and countries will have to work together to deal with both the virus and the economic consequences of it.”
Dame Carolyn Fairbairn, CBI Director-General, said businesses would welcome measures implemented to offset the potential damage of coronavirus.
"The Chancellor’s actions on business rates, emergency funds and loans will help ensure firms can weather the storm, especially smaller firms. Larger firms may also need support as the situation develops," she said.
Other measures announced include the expansion of the affordable homes programme, £5bn spending on gigabit broadband,
Ahead of the Budget, the scale of the challenge facing the economy was underlined by the Office for Budget Responsibility (OBR) in forecasts prepared before the full impact of the virus could be known.
Growth is expected to fall to 1.1 per cent in 2020, down from 1.2 per cent last year.
The 2020 forecast is dramatically lower than the OBR's previous estimate of 1.4 per cent and marks the weakest expansion since the 2009 recession.
