Celebrating the West Midlands
Thank you, Elizabeth, for your kind introduction and for the opportunity to speak here today. It is truly wonderful to see such a diverse group of partners in the audience and to be in the West Midlands—a region that has historically been at the forefront of innovation, having given birth to the industrial revolution, notable figures like Joseph Chamberlain, and, of course, the beloved Cadbury’s Dairy Milk.
Today, the West Midlands stands poised for a promising future. The region is not only home to globally renowned manufacturers such as Jaguar Land Rover but has also seen a remarkable expansion in its professional services sector and the emergence of dynamic firms choosing to establish and grow their operations here.
A Vision for Collaborative Growth
This progress is largely attributed to the visionary leadership of your Mayor, Richard Parker. Although I mistakenly referred to him as the youngest mayor in Europe, he does indeed lead one of the youngest major cities on the continent—Birmingham. Earlier today, I learned about your ambitious plans for the new Sports Quarter. Number 10 North is actively engaged in its development, and alongside Richard, the Combined Authority, and Birmingham City Council, we have established a new Coordination Group this month to ensure that this project comes to fruition.
This collaborative effort embodies the kind of partnerships we need to counteract the growing regional inequalities that have plagued our country. Since the 1980s, largely due to significant changes during that decade, Britain has become one of the most regionally unequal industrialised nations. This disparity has diminished the prominence of our great cities, eroded industrial communities, and placed excessive strain on an overheated South-East.
Empowering Local Economies
At the heart of this issue lies the way we have structured decision-making over the years. While Britain boasts numerous enviable strengths, we often fail in fundamental areas such as decision-making authority. In contrast to many major economies, where power and resources are more decentralised, our cities have been stifled. With strong leadership, they are beginning to turn the tide, but there remains vast potential for further growth.
Across Britain, there are outstanding firms and assets. Other nations effectively nurture these clusters, whereas our public sector has often been too distant, inconsistent, and lacking in strategic vision regarding where to allocate support. Our solution involves delivering sustainable growth across every postcode, which includes greater devolution and public control to create the conditions necessary for businesses to flourish, as outlined by the Prime Minister just last week.
Reinvigorating Economic Opportunities
Many are underestimating the significance of this shift. For the first time in years, we have a Prime Minister who understands the frustrations associated with Whitehall bureaucracy. We have a Minister for Growth, active not only in Westminster but also in Number 10 North, and we are fortunate to have local leaders who are effectively connected to the central government.
Together, we are committed to fostering good growth. To outline this vision from my perspective within government, we must begin by decentralising power and resources away from Whitehall, laying the groundwork for sustainable growth across all regions. This approach will be strategic and focused, acknowledging that we cannot address every need simultaneously.
Identifying Key Economic Drivers
We must be pragmatic in identifying where the most significant economic opportunities lie. Our major urban areas currently lag behind their international counterparts. If we could elevate the productivity of the five largest Mayoral Strategic Authorities outside London to the national average, we could potentially add around £53 billion to the UK’s economic output. Consequently, our collaboration with local leaders will centre on core cities and their surrounding areas that exhibit the highest growth potential.
Moreover, we will harness our comparative economic strengths, both within and beyond our cities, by aligning with sectors where there is private sector demand while collaborating across the ‘triple helix’, which includes our universities, to support the reindustrialisation of our nation.
Building a Foundation for Success
First and foremost, establishing the fundamentals of good growth involves regaining control over essential services such as transport, utilities, and the skills system. This means empowering local areas with the authority and responsibility to shape their own futures. The growth potential of businesses in the Wolverhampton Innovation Corridor or the Coventry Green Power Park will no longer be primarily dictated by decisions made in Whitehall.
Instead, local leaders will be empowered to devise long-term strategies that the private sector can support, much like the West Midlands growth plan you have already implemented. Previous governments have made strides through the expansion of the strategic authority model, but a more radical approach is necessary now.
Radical Devolution for Local Authorities
Our plans entail a sweeping devolution of powers to both strategic and local authorities across England, aiming to ensure that every area has a mayor, provided there is strong local backing. Alongside this, we will assist local councils in enhancing their financial stability to support high streets, regeneration, and local transport—key foundations of growth.
We intend to transfer significant fiscal powers from the Treasury, with more details forthcoming in the Budget. Later this year, we will unveil the Rewiring the State delivery plan, which will devolve more powers related to skills, housing, transport, and innovation, enabling localities to integrate services into a cohesive framework that exceeds the sum of its parts.
Creating Conditions for Sustainable Growth
In addition to devolution, this government is committed to establishing an environment conducive to success across the board. This includes advancing workers’ rights—marking the most significant upgrade in a generation—and promoting affordable travel, exemplified by the £2 bus fare cap to ease daily commutes for many. Moreover, we are placing a strong emphasis on revitalising our high streets as vital hubs of local economic activity.
On this foundation, we aim to boost productivity in our core cities and enhance their connectivity with surrounding regions, particularly in our Northern Growth Corridor, and in areas like Oxford and Cambridge. In the West Midlands, despite its increasing population, Birmingham’s effective size has been hampered by inadequate transport networks and congestion, which limits access to central Birmingham and quality job opportunities.
Addressing Historical Challenges
Richard, I commend you for addressing these issues by bringing buses under public control, expanding the metro system, and constructing new train stations. This, however, highlights the consequences of decades of underinvestment from central government and its historical approach to local leadership.
In the 1960s, government policies even restricted Birmingham’s growth through regional rebalancing measures. This must never happen again. This government is determined to step up and support an integrated transport system while promoting city density, regeneration, and investment.
We are backing the Midlands Rail Hub and the expansion of the West Midlands Metro. Crucially, we are reorienting HS2 to ensure a practical delivery path, enabling quicker journey times to London, and facilitating much-needed capacity while stimulating regeneration in Birmingham, Solihull, Coventry, and beyond.
Fostering Growth in Clusters Nationwide
Alongside our commitment to city regions, we must also nurture the highest-potential growth clusters, regardless of their location across the country. The success of the Advanced Manufacturing Park in Rotherham illustrates the effectiveness of strong partnerships between academia, industry, and public-private collaboration.
Consider the transformation of the area surrounding Kings Cross station—once a neglected part of London, it has now emerged as Europe’s leading AI hub. This remarkable change occurred not by chance but through a combination of private sector ingenuity and concerted backing from government and local councils.
This is the level of ambition I know Richard, the council, and Lendlease have for Smithfield and other areas, and it was inspiring to hear about those plans earlier today.
Empowering Local Leaders for Future Success
To replicate such successes, we must collaborate with local leaders and support sectors, including those naturally clustering outside major cities, that are best positioned to generate the wealth and employment opportunities our nation requires. Our plan aims to equip local leaders with the necessary tools to create the right conditions for business growth, job creation for young people, and thriving communities.
For too long, these tools have been monopolised by a Westminster government that could not effectively drive growth across every postcode. This government is adopting a different strategy, grounded in partnership and inspired by the successes of places like the West Midlands. We will execute our plan through Parliament, including in the forthcoming Budget, the Rewiring the State White Paper, and next year’s Spending Review. I firmly believe that through our collaborative efforts, we will achieve the good growth that our country desperately needs.
Thank you.