Help for the West Midlands economy welcome but more needed

But there was a general feeling that more still needs to be done to stimulate

One piece of good news was £15 million Levelling Up funding being announced for the West Midlands Combined Authority to support cultural, heritage and invesment projects.

David Morris, PwC Midlands regional market leader, said: “The announcement to provide £15m to the West Midlands Combined Authority to support culture, heritage and investment projects is welcome. The region has benefitted over the last two-years from the financial incentives of the investment zones and freeports, resulting in the West Midlands ranking as the top region out of London for Foreign Direct Investment in 2023. Continued investment is needed to maintain the momentum in the region and achieve economic growth."

Stuart Smith, head of the Midlands at JLL, said: “That policies in this Budget have largely targeted people over businesses is of little surprise in the run up to a general election. However, inflation is nearly under control, which means rate cuts should soon follow – and the real estate industry is ready to act. To this end, news of a further cash injection into the Levelling Up Fund as well as detail on plans for the West Midlands Investment Zone will be broadly welcomed.

“Investors will be going through the detail of today’s announcements for more reasons to direct capital to our cities. What’s needed is a concerted effort to build more quality, sustainable homes across the Midlands, and reassurance that they’re in a position to benefit from the reallocation of funds from HS2. Clarity on this will be vital to give councils what they need to develop local transport projects with next year’s budgets in mind.

“No matter which party is in power after the next election, it will need to back businesses and make a compelling case to invest in the Midlands’ cities if we’re to realise its economic potential.”

Stephen Deakin, chief executive of Wolverhampton-based BCRS Business Loans, which provides loans for small firms in the West Midlands and Wales, welcomed the two-year extension of the Recovery Loan Scheme, originally launched during the Covid pandemic to support small businesses.

BCRS is one of the socially motivated community development finance institutions that distribute the funds.

Since 2020, BCRS Business Loans has delivered 188 recovery loan scheme loans with a total value of £14.7 million creating 926 jobs and safeguarding a further 2097 roles.

"We are delighted the RLS will continue and welcome the Chancellor’s announcement as the scheme has proven to be an essential tool to unlock small businesses growth,"said Mr Deakin.

Johnathan Dudley, national head of manufacturing for Crowe, who is based in Oldbury, said: “There were a number of initiatives around the edges, such as the fuel duty freeze, that will benefit manufacturers and the SME sector but little direct assistance unless you are in the technology sector, which saw the majority of investment announcements.

“But, despite the investment incentives intended to help establish the UK as a world leader in high growth industries, including the creative sector, advanced manufacturing and life sciences, I question where this money is going to be delivered.

“If it mainly ends up with large, listed companies and original equipment manufacturers, how is this going to benefit the supply chain and SMEs who make up the vast majority of their suppliers and the reason for them to source in the UK."

Neil Lloyd, managing partner of Wolverhampton law firm FBC Manby Bowdler and chairman of the Training and Manufacturing Group,said the world-class makers of the Midlands would welcome funding packages for research and development announced by the Chancellor, but the sector needed more than just Government financial investment to meet current challenges.

“Although I welcome the investment pots, which include £200m for developing sustainable aviation and automotive tech, we need to have wrap-around support for companies if they are to deliver on the funding potential.

“That means a long-term industrial plan, support for skills development, planning reform to free up sites for expansion and an import and export strategy to combat the ongoing effects of Brexit.

"The Advanced Manufacturing Plan announced at the Autumn Statement was a step in the right direction, but with the next general election looming and the potential for a new government to be at the wheel by the end of the year, this means more uncertainty for businesses.

“We have a proud manufacturing history in the West Midlands, and that includes Shropshire - the birthplace of the Industrial Revolution.

“A world-leading manufacturing sector needs a world-leading economic strategy which promotes growth, skills improvement and innovation. The reality is that we may be waiting a while for it.”

Manny Athwal, founder of Wolverhampton-based School of Coding & AI, which has launched a new scheme to improve the digital skills of adults across Shropshire, welcomed the Government's package of technology reforms, including the use of AI designed to speed-up results in the NHS and cut admin tasks for police.

“AI has made its way into many industries, including education, medicine and transportation, and embracing it is no longer an option, but a necessity in order to thrive and succeed in the digital age.

“One of the main advantages of AI is its ability to process large amounts of data quickly and accurately, which can help governments make more informed decisions and improve the delivery of public services.

“In the healthcare industry, AI is proving to be a real game-changer. From safeguarding private records to robot-assisted surgeries, it's improving almost every aspect of the industry.

“In policing, it will allow faster and better decision making, improved deployment of skilled frontline staff and help police to work smarter.

“AI will continue to drive massive innovation that will fuel many existing industries and could have the potential to create many new sectors for growth. It could become one of the single most influential human innovations in history.”