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Local Growth

Volume 622: debated on Thursday 9 March 2017

The Chancellor announced at the 2016 autumn statement that the Government would publish a strategy for the midlands engine.

As the ministerial champion for the midlands engine I am delighted that we have today published that strategy. I will be placing a copy in the House of Commons Library.

The midlands has a central role to play in the Government’s emerging industrial strategy—a successful midlands economy is a vital part of a successful UK economy that works for everyone. It is at the heart of the United Kingdom and has huge economic potential. Its economy is worth £217.7 billion—13% of the UK’s annual output.

Through the strategy we will focus on five key objectives:

Improving connectivity to raise productivity

Strengthening skills to make the Midlands a more attractive location for businesses

Supporting enterprise and innovation to foster a more dynamic regional economy

Promoting the Midlands nationally and internationally in order to maximise trade and investment in the region

Enhancing quality of life to attract and retain skilled workers, as well as to foster the local tourism economy.

As part of the delivery of the connectivity theme, Midlands Connect is today launching its transport strategy, “Powering the Midlands Engine”, which outlines transport investment priorities across the region.

The Government cannot deliver the midlands engine strategy alone. We will continue to work with the Midlands Engine Partnership, which brings together businesses, local authorities, academic institutions and local enterprise partnerships (LEPs). It is a unique example of local government and businesses voluntarily joining forces to deliver a shared vision for a whole region. Together with the West Midlands Combined Authority, and LEPs and local authorities across the region, it provides an excellent vehicle to support delivery of this strategy, continuing on our journey towards making the midlands an engine for growth and building an economy that works for everyone.

As part of the midlands engine strategy, I am today announcing the 10 individual awards to LEPs in the midlands.

Between them they will benefit from £392 million of Government support from the local growth fund, on top of the £1.5 billion committed in previous growth deals.

Table A: growth deal 3 funding awards for LEPs in the midlands


Funding Award (£m)

Black Country


Coventry and Warwickshire


Derby, Derbyshire, Nottingham and Nottinghamshire


Greater Birmingham and Solihull


Greater Lincolnshire


Leicester and Leicestershire


South East Midlands


Stoke and Staffordshire


The Marches




We have now awarded over £9 billion to LEPs from the local growth fund. With the home building fund and local transport majors launched in 2016 we have fulfilled our manifesto commitment to a £12 billion local growth fund. It is a crucial part of the Government’s agenda to drive growth and devolve power to local areas, with decisions being made by those who know their local area best, and supporting the Government’s commitment to build an economy that works for everyone.

This was the most competitive round yet, and awards were made based on a bidding round that took place last year.

The expanded deals will provide LEPs in the midlands with the power and funding to support local businesses, unlock housing where it is most needed and develop vital infrastructure to allow places to thrive. The funding will also be used to create jobs, equip a new generation with the skills they need for the future and attract billions of pounds of private sector investment. This investment is Government stepping up, not stepping back, building on our strengths to boost national productivity and growth.

The Government have strong ambitions to put the midlands at the heart of growth in the UK. We have already invested £1.5 billion in growth deals in the midlands and this additional investment will help to ensure that we achieve greater economic growth and productivity. We are supporting improvements in infrastructure, skills, business environment, innovation and increasing trade and investment by promoting the midlands nationally and internationally.

Attachments can be viewed online at: http://www.parliament. uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-03-09/HCWS523/