£389m to boost living standards in landmark shift of power to the region
A single annual payment of £389m was today (Thursday January 30) confirmed for the region as part of an unprecedented shift in power, funding and responsibility from Westminster to the West Midlands.
Alongside the region’s existing £211m transport funding, today’s Integrated Settlement – the first to be awarded to any English region – will amount to £600m to boost economic growth and living standards over the coming 12 months.
The settlement, announced by deputy prime minister Angela Rayner, will cut bureaucracy and give Richard Parker, mayor of the West Midlands and local leaders, greater control, choice and power to focus money on regional priorities like economic growth, jobs, housing and better transport.
The settlement, which will run from this April to March 2026, will deliver a range of services and infrastructure projects that had previously relied on the region’s ability to win multiple grants from different government departments.
Richard Parker, mayor of the West Midlands
The mayor said: “This settlement shows the government’s strong confidence and commitment in transferring more powers and responsibilities from Whitehall to the West Midlands.
“That means every penny can be targeted where it will have the biggest impact, on the things that matter most to people like jobs, affordable housing and better transport – all key priorities for me.
“This initial pot of money is just the start of a succession of multi-year settlements for the region. In return I will use that money to make bold, long-term decisions that create real opportunities for local people, making sure no community is left behind.”
The mayor said the settlement would help get people into work and better paid work, maintain and improve the public transport network, deliver more affordable and social housing and help businesses to grow.
The settlement will also accelerate the region’s transition to net zero with funding to retrofit old and cold homes with low carbon heating and super insulation to help people cut energy use and bills.
Today’s settlement follows the government’s recent publication of its English Devolution White Paper which sets out ways to end Westminster-centric decision making and micromanagement of mayors by transferring greater freedoms, control and independence to the regions. It also follows the confirmation of a new partnership between the region and the National Wealth Fund.
As part of this ongoing devolution of powers and funding to the West Midlands, the region expects future settlements to span multiple years. It is also keen to see additional funding brought under regional control for skills, employment support, business growth and to tackle climate change.
The Integrated Settlement means the West Midlands has become the first of only two English regions that will get a single pot of money this year. The other will be Greater Manchester with more regions to follow from 2026.