£1.2bn investment to drive growth, jobs, housing and better transport

Hundreds of millions of pounds will be invested by the West Midlands Combined Authority (WMCA) over the coming 12 months to drive economic growth, build more social and affordable housing, improve transport links and give people the skills they need to land good quality jobs.

The focus on improving people’s lives has been set out in the £1.2bn WMCA 2025/26 Budget which was recently approved by the region’s political leaders.

This year’s Budget is historic in that it includes, for the first time, an Integrated Settlement marking an unprecedented shift in power, funding and responsibility from Westminster to the West Midlands.

The £389m Settlement will cut bureaucracy and give Richard Parker, Mayor of the West Midlands and local leaders, greater control, choice and power to focus the money on regional priorities.

Together with additional funds secured from Government and other sources, the WMCA’s indicative Capital Budget for 2025/26 will be £684.4m.

This will be used to invest in projects that support the mayor’s four key priorities – Growth for Everyone, Homes for Everyone, Jobs for Everyone and Journeys for Everyone. It will be accompanied by a revenue budget of nearly £559m.

West Midlands mayor Richard Parker (pictured) said: “Since being elected I have taken action to tackle youth unemployment, secured a £5.5bn Investment Zone to drive economic growth, funded hundreds of new social and affordable homes and made swift progress to bring our buses under public control. 

“It is these things - good jobs, affordable homes, efficient public transport and thriving businesses – that matter most to people and that’s why they are my priorities.” 

At a meeting in the City of Wolverhampton Council chamber, the board, which includes the leaders of the seven West Midlands Metropolitan councils, heard how the Budget had taken into account the financial and cost of living pressures faced by the region’s local authorities and residents.

This includes committing to delivering operational efficiency savings of £5m to ensure that WMCA continues to deliver value for money.

There will also be no mayoral precept for the tax payer during 2025/26 or any increase in the WMCA membership fees for local councils

The Budget also includes £554.9m for transport including major infrastructure projects to expand and decarbonise the network including the ongoing construction of new rail lines and stations, Metro tram lines, zero emission buses and safe walking and cycling routes to better connect people to jobs, education and training opportunities.