A new 'investment zone' is set to be introduced in the West Midlands with the potential to create 30,000 new jobs over the next decade.
Chancellor Jeremy Hunt announced the move in his Autumn Statement today, with regional chiefs claiming it could inject £5.5 billion of growth into the West Midlands.
The zone will benefit from a mix of tax incentives, direct funding and business rate retention, with a focus on advanced manufacturing, green industries, health tech and underlying digital technologies.
The investment zone itself will cover the whole West Midlands but will be focussed on three specific sites:
- Coventry-Warwick Gigapark - anchored by a new EV battery gigafactory at Coventry Airport and associated businesses and technologies
- Birmingham Knowledge Quarter - running north east from Aston University through Duddeston and Nechells to Aston
- Wolverhampton Green Innovation Corridor - creating new green industries and skills through a partnership between the city council and university
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The decision to give the go-ahead for an investment zone follows the region's work to attract private sector money.
The Chancellor also announced the funding package for the zone would be increased from £80 million to £160 million and could be applied over ten years rather than five as originally proposed.
Separately, a single pot of funding is to be created for the West Midlands, leaving local leaders to decide for themselves on how best to use the money to help level up the region.
Known as the Single Settlement, one of several commitments in the region's Deeper Devolution Deal agreed in March, it will give the West Midlands control over spending similar to the Scottish and Welsh Governments.
The funding will be used to improve transport, skills, housing, the retrofitting of homes to reduce people's energy bills and to drive inclusive economic growth. Payments will start at the next Spending Review period, expected to be in 2025.
West Midlands Mayor Andy Street said: "I welcome the serious and substantial announcements set out by the Chancellor. The responsible and forward-thinking decisions he has taken will support households and businesses, boost growth and investment and create job opportunities.
"It's great news that we now have confirmation that our region will play host to an investment zone. This will turbo-charge the prospects of some of our key areas of strength including tech, advanced manufacturing and green industries.
"Working alongside the outstanding research capabilities of our world-leading universities, this investment zone will enhance our ability to attract global companies to our region."
He added: "The Chancellor's decision to empower the West Midlands with a single funding settlement heralds a pivotal moment for our region.
"It will end the need for competitive bidding into government to fund our transport, housing, skills and investment projects and put us on par with Government departments and devolved parts of the UK."
The West Midlands Gigafactory joint venture has welcomed the Chancellor's announcement that the site will be included in the new investment zone.
Cllr Jim O'Boyle, cabinet member for jobs at Coventry City Council, said: "Our site is a prime location offering future investors an all-in-one solution for battery manufacturing, research, industrialisation and recycling.
"Today's announcement delivers significant additional tax incentives and breaks, making the site even more attractive for future investors."
