West Midlands set for £1.2bn boost following Spending Review

The West Midlands could receive more than £1.2 billion of investment following the recent Spending Review, according to the region’s combined authority.  

Calculations by the West Midlands Combined Authority (WMCA) suggest the region is in line for significant funding boost, including money for public transport, housebuilding, and re-training.

This is on top of the £55bn earmarked nationally by government to help tackle the ongoing coronavirus pandemic.

The single biggest sum of money will come through the five-year intra-city transport settlement, which will see an estimated £800m come to the West Midlands to be spent on public transport projects. 

This is the single largest devolved pot of money the region will have received since the formation of the WMCA.

Other funds set to provide a significant cash injection into the region are the £4bn Levelling-Up Fund, the £2.2bn National Home Building Fund, and the £2.8bn restart scheme. It is estimated the region will receive around £450m from these national funds.

There was also a major boost to the region’s quest for a Gigafactory in this week’s announcement, with the chancellor confirming that he is making £500m available over the next four years for battery production on a mass scale and for electric vehicle supply chains.

The move has been welcomed by West Midlands Mayor Andy Street, who has been spearheading the region’s campaign to secure the UK’s first Gigafactory.

‘I am hoping we will receive around £250m from this new battery fund, which is a significant step forward in the region’s quest for the UK’s first Gigafactory,’ said Mr Street.

‘We always knew we would need a public subsidy to make a Gigafactory happen, and the government has now put this cash on the table. Our team will work like lightning to ensure we secure the share of the cash we need, allowing us to press ahead with our ambitious plans.

‘The Gigafactory is critical as it is the future of our automotive industry here in the West Midlands, helping to create and protect tens of thousands of jobs – but it was not the only thing of note from the chancellor in his spending review.

‘The estimated £800m we will receive from the intra-city transport settlement is the single biggest pot of devolved cash we will have ever been given in my time as mayor and shows serious confidence in our public transport plans,’ added the mayor.

‘There was also cash for helping people back into work and for housebuilding, and my calculations suggest the West Midlands could be in line for around £1.2bn from the Treasury.’

Read the full reaction to this week’s Spending Review here.

Photo Credit – West Midlands Combined Authority