New devolution powers for West Midlands announced in Budget
The Deep Devolution Deal is estimated to be worth more than £1.5bn.
Last updated 15th Mar 2023
New devolution powers have been announced in the Budget which will see the West Midlands take greater control over its housing, transport, employment and regeneration.
The Deeper Devolution Deal is estimated to be worth more than £1.5bn. £60m will go towards the Metro extension to build and open the line between Dudley town centre and Brierley Hill.
The West Midlands Combined Authority (WMCA) said the deal will also mean 100% business rates retention for 10 years, worth £450 million.
It has also been confirmed the West Midlands will, from the next spending review, have a departmental-style arrangement with a single pot of funding negotiated with Government.
As well as new funding, the deal offers the West Midlands further influence over key policy areas such as skills, careers, employment support and digital inclusion. This will give local decision makers more freedom and flexibility to support people into work, attain better skills and improve their quality of life.
Key features of the deal:
- A £500m housing deal paving the way for additional brownfield regeneration and a faster programme of affordable homes
- Expansion of high-speed broadband to get more people online
- Six so-called levelling up zones, worth an estimated £500m to the region
- Funding to help expand the Metro network, create new railway stations and more bus and cycle lanes
- More help improving skills, careers and employment support for people across the West Midlands
Andy Street, Mayor of the West Midlands and WMCA chair, said: “This announcement is a major step forward for the West Midlands with significant new powers and funding secured.
“We’re deepening devolution by building on previous deals and further empowering local leadership with the financial autonomy and decision making authority that they are best placed to deploy. No one in Whitehall can understand the West Midlands better than local leaders, and so there is no doubt in my mind that we should be empowered to shape our future – which is exactly what this new deal will allow us to do.
“I recently called for an end to the ‘begging bowl culture’ which confined us to regularly submitting bids for various pots of money in competition with other regions. I’m pleased to see that this new devolution deal goes some way to addressing that - giving us guaranteed devolved funding to spend how we choose, akin to what Government departments have currently, and doing away with Whitehall micromanagement.
“Since 2017, we’ve demonstrated a solid track record in building more homes whilst protecting the green belt, improving peoples’ skills to help them find quality work, increasing transport investment sevenfold and tackling the climate emergency. This is why the Government is trusting us and granting us greater responsibility - and accountability - to deliver even more.
“Today is a milestone day for the West Midlands, and I am delighted we have been able to work together as a team to get this Deeper Devolution Deal over the line.”
Cllr Ian Ward, Birmingham City Council Leader, and WMCA Portfolio Lead for Transport said: "I welcome the devolution deal and I'm encouraged that the Government has listened to Birmingham City Council's calls for a levelling up zone to cover East Birmingham.
“We are ambitious for Birmingham and its people, and we need a government that matches those ambitions. So this must be just the start of the long overdue transfer of powers and resources from Westminster to our cities and regions.
"With the right support, cities like Birmingham can unlock growth and tackle inequalities that continue to hold too many people back. To do that, we need a long-term settlement for local government to resource local public services added to the powers that will enable us to address everything from anti-social behaviour to the climate emergency at pace and scale.
"Taken at face value, the devolution deal also means more certainty in funding for affordable housing and local investment, and new powers and remits that will support the delivery priorities of the combined authority and West Midlands councils, bringing benefits to our city and residents.
“But we cannot ignore that a decade of austerity has reduced what councils can do and the future is still uncertain, as additional pressures, like the cost-of-living crisis increase demand for council services."