PRIVACY
Economic Development

New 'Growth Zones' for West Midlands could generate £1.7bn

Retention of business rates for 25 years will fuel bumper boost in areas such as housing, skills and jobs, says combined authority

New Growth Zones are to be created across three parts of the West Midlands

A ground-breaking new deal aimed at boosting jobs, skills and health has been secured for the West Midlands.

Three parts of the region have now been designated as 'Growth Zones' which civic leaders say could generate more than £1.7 billion for local councils to spend on levelling-up projects.

The West Midlands is said to be the first UK region to be awarded the green light to create growth zones which will allow councils to retain business rates for 25 years.

This money can then be used to help rebalance and grow the region's economy while also tackling long-standing issues causing deprivation, fuel poverty, jobs, skills and health.

West Midlands Combined Authority said the three zones had the potential to create 60,000 jobs and deliver 4,500 new homes. The three designated areas are one straddling Dudley and Sandwell, a second in Walsall and a third covering parts of east Birmingham and north Solihull.

The Growth Zone proposals were secured by the combined authority earlier this year as part of the region's Deeper Devolution Deal with central Government which has seen some powers and financial controls transferred out of London to the region.

Combined with the Chancellor's recent announcement for a West Midlands Investment Zone, it means every local authority in the region will benefit from new financial powers to meet the priorities for their communities and businesses.