While most regions are witnessing declining growth, the West Midlands is bucking the trend, with Birmingham smashing records for attracting FDI, says mayor Richard Parker
Today, the new Government will use the King’s Speech to put economic renewal at the heart of its legislative agenda and commit to hand power back to local leaders. There is no doubt about it – hope is in the air. Across the country, people are feeling that same sense of opportunity and eagerness for change that I heard so often on the doorstep during my campaign to become Mayor of the West Midlands.
But hope is not just in the air, it is also in the numbers. After the scandal of a decade of sluggish economic growth and ambivalence towards industrial policy, there are signs of improvement – and it is the region I am so proud to represent that is bucking the trend.
Recently published figures from Ernst & Young (EY) show the West Midlands as a powerful contender in the global race to secure foreign direct investment (FDI). While most regions of the country witnessed decline, the West Midlands welcomed UK-leading growth, with FDI projects up 72 per cent from last year and 13 per cent of the UK’s total. Birmingham smashed records, becoming the country’s most successful regional city of the decade, with 67 FDI projects secured.
This investment success correlates with Labour’s number one priority: economic growth. It is an example of a lever we can pull to create well-paid jobs for local people. EY’s figures show that, through FDI, the West Midlands created 6,784 jobs; again, 13 per cent of the UK’s total.
This really matters. The West Midlands’ stronghold at the vanguard of key, emerging industries has enabled it – and indeed Britain – to secure growth and investment despite the aggressive competition. But we cannot continue to do this on our own; inclusive growth requires better alignment at national, regional and local levels.
Right now, our regional economies are like sleeping giants. EY’s figures show there are signs of stirring – but now is the time to really wake them up by harnessing the strength of regional innovation. The West Midlands has the blueprint to make that happen.
A long-standing pioneer of industry, today, the region’s inventive mindset is giving rise to new technologies that will shape a smarter, cleaner and more inclusive tomorrow.
Whether it’s trailblazing sustainable construction expertise in Wolverhampton, life-changing medTech developments in Birmingham’s Life Sciences Opportunity Zone or the battery technology revolution underway at Coventry’s Greenpower Park – the formula for attracting global attention is finding solutions to the problems the whole world is invested in.
Investors will then vote with their feet. Over the past 12 months, Swedish company Atlas Copco has opened its Smart Factory Innovation Centre in Wolverhampton, and US-owned HCA Healthcare introduced the West Midlands’ first Da Vinci robot in the private sector at the new Harborne Hospital.
Success breeds success – just look at how our region’s skilled workforce has been key to attracting new investment from global leader in design and technology services, Tata Elxsi. Last week it announced a wave of new cybersecurity and AI jobs at its Coventry design hub, now designated as the firm’s global centre for excellence.
I am so proud of what is being built – but this is just the start.
As international investors place their trust in the region at record levels, I will ensure that our local people benefit from the jobs they create and have the necessary skills to match.
Last week I launched a new plan to tackle youth unemployment and help create the best start in life for our young people. To deliver this, we’ll be working with our local businesses to open some 20,000 training work placements to get our young people on the career ladder, meanwhile equipping investors with the motivated, skilled employees they need.
Labour’s commitment to increasing devolution and placing responsibility for delivery at a local level shows the Prime Minister equally understands that for too long regions have been held back by decisions in Westminster.
New statutory Local Growth Plans will be so important. Whether it’s in the West Midlands, Greater Manchester or the North East, putting decision-making powers in the hands of our regions will empower us to better tell our own powerful stories to the world.
We need to build a new economic identity the world cannot afford to ignore. I believe that starts in the West Midlands.
Richard Parker is Mayor of the West Midlands