Levelling Up zones to create growth and jobs

Six 'levelling up zones' aim to return the West Midlands to its pre-pandemic growth levels.

Kate Knowles - Local Democracy Reporter | Saturday 25th March 2023 10:30am

Six West Midlands ‘levelling up’ zones are set to revitalise the region’s economy and create jobs the mayor has claimed.

The move, enabled by the ‘Deeper Devolution Deal’ signed this week, intends to accelerate the WMCA’s plans to generate 45,000 jobs and grow the economy by £3billion.

Six zones have been identified as the locations for key investment sites where the region can now retain business rates growth for the next 25 years.

The WMCA claims this will be worth approximately £500million.

The ‘growth zones’ being considered are:

Andy Street, Mayor of the West Midlands and WMCA Chair, said: “The West Midlands was the fastest growing region in the UK pre-pandemic and – as we get back on track – our Plan for Growth will drive our regional recovery forward.

“The new Deeper Devolution Deal that we’ve just negotiated with the Government will enable us to better create the right conditions to draw in the private sector investment that will help power prosperity right across our region.

“Whether it’s unlocking key sites, skilling our workforce or advancing innovation in the green and digital industries of the future, we must use this moment as a springboard to generate jobs and opportunities for the benefit of local people in the months and years ahead.”

Cllr Ian Brookfield, WMCA portfolio holder for economy and innovation, and leader of City of Wolverhampton Council, said: “A strong economy is reliant on creating the right environment for businesses to succeed in and I look forward to seeing how we can best capitalise on the additional tools that deeper devolution gives us to do that.

“Our Plan for Growth has already paved the way for how we can return our economy to an upward trajectory and with greater influence in key areas means we can better focus on growing the clusters that we know are our natural strengths and those that we have already identified as being key to our future prosperity.”

In addition to these levelling up zones, Chancellor Jeremy Hunt last week confirmed in his budget the West Midlands will host one of twelve UK ‘investment zones’.

The low tax zones will be focused around universities for five years with the aim of “supercharging” the economy.

However, some people are unconvinced the plans will neccessarily bring lasting change.

Speaking to the LDRS after the budget, Professor of Business Economics at the University of Birmingham, David Bailey, said: “The evidence suggests that it tends to shift activity from one place to another.

“Where they can work is when you have a much more kind of holistic approach to putting that alongside infrastructure locally, skills, innovation support.

“Having it close to a university might be a better way to go, nevertheless I remain sceptical as to whether there could be long term benefits from it.”

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