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West Midlands to get new devolution powers, chancellor announces

Getty Images Birmingham skylineGetty Images
The powers to the WMCA cover 18 local council areas across the West Midlands

New powers for the West Midlands to control its housing, transport, employment and regeneration have been announced in a Budget deal estimated to be worth more than £1.5bn.

An extra £60m will go towards extending the Metro between Dudley town centre and Brierley Hill, Chancellor Jeremy Hunt confirmed.

West Midlands mayor Andy Street said it was a "monumental" day for the region.

Business rates will also be retained locally in the Deeper Devolution Deal.

The announcement in the Budget means the West Midlands Combined Authority (WMCA) will get a single pot of funding from the government which will "give local leaders unparalleled control over spending on devolved areas, marking a seismic shift in power and influence from Whitehall to the West Midlands".

The deal includes:

  • 100% business rates retention for 10 years, worth an estimated £450m
  • A funding commitment to help expand the Metro network, create new railway stations and more bus and cycle lanes
  • A housing deal worth up to £500m that should pave the way for additional brownfield regeneration and a faster programme of affordable homes
  • A move to expand high-speed broadband and get more people online
  • Up to six so-called levelling up zones, backed by 25-year business rate retention, worth an estimated £500m to the region
  • More help improving skills, careers and employment support for people across the West Midlands
  • Devolution of the bus service operators grant and a new partnership with Great British Railways to offer greater control of public transport services
PA Media A tram in BirminghamPA Media
Millions of pounds will help extend the Metro tram network even further around the region

The six levelling up zones that have been announced are East Birmingham-North Solihull; Wolverhampton Innovation Corridor; Walsall Growth Corridor; Dudley & Sandwell Metro Corridors (including the Wednesbury to Brierley Hill link); and the Coventry and Warwickshire gigafactory zone.

Conservative Mr Street, who is also WMCA chair, said he had called for an end to a "begging bowl culture" that saw areas "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 righting that wrong - giving us guaranteed devolved funding to spend how we choose, akin to what government departments have currently, and doing away with Whitehall micromanagement."

The jubilation from the Conservatives over Wednesday's Budget was met with derision from many Labour MPs, including Ladywood's Shabana Mahmood who tweeted the government's "economic failures" were "holding Britain back".

Ian Ward, leader of Labour-controlled Birmingham City Council, said he "broadly welcomed" the devolution deal.

"This must be just the start of a long overdue transfer of powers and resources to our cities and regions," he said.

"With the right support, Birmingham can unlock growth and tackle the inequalities that hold too many people back."

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