Plans that could create more than 30,000 new jobs and attract billions of pounds of private investment to the West Midlands have been given the green light.
The proposals to set up a West Midlands Investment Zone were approved by the West Midlands Combined Authority (WMCA) and pave the way to introduce a mix of tax incentives, direct funding and business rate retention to boost business in the region.
The plan is focused on driving growth in advanced manufacturing, green industries, health-tech and digital technologies, which supporters believe will help bring in more than £5.5bn in investment by 2035.
The investment zone will cover the whole West Midlands but will be powered through three specific sites at Coventry Airport, the Birmingham Knowledge Quarter and Wolverhampton “green innovation corridor”.
Each location within the West Midlands Investment Zone will be assigned funding packages and incentives for businesses who set up there.
Laura Shoaf, WMCA chief executive, said: “The Investment Zone is already attracting significant private sector investment and following the deployment of this delivery plan will have the potential to attract billions of pounds more as well as tens of thousands of new jobs.
“Those jobs are key because this investment zone needs to be as much about people as it is about business.
“That’s why our delivery plan includes a comprehensive skills programme so local people can get the jobs being created, especially those in the new technology-based and green industries.
“At the heart of our plan, which could not have been put together without the invaluable support of our local councils, universities and private sector, is the need for this zone to bring inclusive economic growth to every corner of our region.
“We believe the zone can do that by driving forward the technology based, low carbon industries of the future while attracting top companies from around the world.”
The approved plan anticipates retaining approximately £1.5bn in business rates over the zone’s 25-year lifespan, with funds earmarked for reinvestment into regional development initiatives.
Initial government funding of £160m over the next decade will support targeted programmes including supply chain adaptation, research and development grants and skills training.
With approval secured, the delivery plan will now undergo final scrutiny by the Department for Levelling Up, Housing and Communities.