Hundreds of millions of pounds will be invested by the West Midlands Combined Authority (WMCA) over the coming 12 months to drive economic growth, build more social and affordable housing, improve transport links and give people the skills they need to land good quality jobs.
The focus on improving people’s lives has been set out in the £1.2bn WMCA 2025/26 Budget which was approved by the region’s political leaders.
This year’s Budget is historic in that it includes, for the first time, an Integrated Settlement marking an unprecedented shift in power, funding and responsibility from Westminster to the West Midlands.
The £389m Settlement will cut bureaucracy and give Richard Parker, Mayor of the West Midlands and local leaders, greater control, choice and power to focus the money on regional priorities.
Together with additional funds secured from Government and other sources, the WMCA’s indicative Capital Budget for 2025/26 will be £684.4m.
This will be used to invest in projects that support the Mayor’s four key priorities – Growth for Everyone, Homes for Everyone, Jobs for Everyone and Journeys for Everyone. It will be accompanied by a revenue budget of nearly £559m.
Richard Parker, Mayor of the West Midlands said: “Since being elected I have taken action to tackle youth unemployment, secured a £5.5bn Investment Zone to drive economic growth, funded hundreds of new social and affordable homes and made swift progress to bring our buses under public control.
“It is these things - good jobs, affordable homes, efficient public transport and thriving businesses – that matter most to people and that’s why they are my priorities.”
“We have just approved a £1.2 billion budget to deliver on these priorities and make a difference to the West Midlands. This is the same amount as last year despite a difficult economic backdrop. It will help tackle some of the biggest challenges we face as a region so we can begin to change thousands of lives for the better and look forward with renewed optimism.”
At a meeting in the City of Wolverhampton Council chamber, the Board, which includes the leaders of the seven West Midlands Metropolitan councils, heard how the Budget had taken into account the financial and cost of living pressures faced by the region’s local authorities and residents. This includes committing to delivering operational efficiency savings of £5m to ensure that WMCA continues to deliver value for money.
There will also be no Mayoral precept for the tax payer during 2025/26 or any increase in the WMCA membership fees for local councils
The scale of the investment set out in the Budget to improve the quality of life across all of the region’s communities includes:
- £204m investment in jobs, skills, training and apprenticeships to help reduce youth unemployment and give everyone the opportunity of a job that pays well.
- £67.7m for housing delivery, especially the construction of more social and affordable housing so that everyone will have a place to call home and £37.8m for retrofitting homes across the region to make them more energy efficient and reduce home owner energy bills.
- £55.7m to drive economic growth and support the region’s investment zone with help for smaller businesses to make sure all communities benefit and the environment is protected.
The Budget also includes £554.9m for transport including major infrastructure projects to expand and decarbonise the network including the ongoing construction of new rail lines and stations, Metro tram lines, zero emission buses and safe walking and cycling routes to better connect people to jobs, education and training opportunities.
Key transport projects include:
- £84.8m for the on-going construction of the Black Country Metro tram extension
- £33.4m for the Birmingham Eastside Metro extension
- £34m for new railway services and stations on the Birmingham Camp Hill and Walsall to Wolverhampton lines
- £36m for zero-emission buses including the Coventry All Electric Bus City project
The Capital Budget also includes £234.5m for both the WMCA and local councils to deliver transport interventions including highway maintenance, very light rail, cycle and walking schemes and other sustainable travel projects.
Provision is included to support the region’s bus network and protect the existing level of services. Without support from the WMCA around a third of services would likely be cut by operators.
In addition to this, the transport revenue budget includes £61.1m for concessionary travel for older people, children and people with disabilities as well as £6.9m for Accessible Transport.
There is also funding for the continued subsidy of the operation of the West Midlands Metro and support for the West Midlands Cycle Hire scheme.
Image credit: WMCA
