Regional investment summit in the Midlands sends a powerful message

Securing the summit in the Midlands was a notable achievement for the new Mayor of the West Midlands, Richard Parker. There again, given the growth and investment taking place around our region, perhaps it was a logical choice. The fact is that Birmingham and the wider region are seeing extensive and exciting investment – something that often gets crowded out in the media headlines. Under the region’s devolution deal, the mayoral corporation is overseeing some huge developments including multi-billion pound investments in a sports quarter, residential and commercial developments, and the creation of a digital quarter housing media and technology businesses and start-ups. 

Added to this is HS2. While that project has been downsized nationally, it still has enormous significance for Birmingham. It is already having a catalytic effect, with the visuals of the city changing as towers and new infrastructure are constructed. It won’t only benefit the centre of the city – new links will make travel faster around the area, making housing and other developments more attractive propositions across the suburban hinterland.

It all combines to make Birmingham and the Midlands a truly investable proposition. We have a large regional economy – roughly the same size as a country like Croatia’s – and the highest rate of start-ups outside London every year for the last five years. The East Midlands, meanwhile, is a powerhouse for aerospace and defence manufacturing and also hosts the country’s only inland freeport at East Midlands airport and two other sites. The population is young too – some 35% are under 35 – with a high number of graduates, creating a high-potential talent pool.

This sets the conditions for our region to continue in its proud history of industrial manufacturing and engineering excellence while also building a thriving new economy based around today’s technologies – digital and AI, gaming, advanced manufacturing, cleantech and more.

However, this isn’t to say there aren’t challenges. Nationally, economic growth remains subdued (as it is across the EU). There are signs of a slowing in the jobs market and businesses are worried about costs and possible tax rises. For private enterprises and family businesses, the changes to inheritance tax (IHT) and capital gains that are still working their way through the system are a major issue that require careful analysis and planning. 

We also need to get better at joining up efforts and initiatives within regions themselves. In the Midlands, we are much stronger if we can find one unified voice and attract investment as a region rather than a series of sub-divisions between West and East Midlands or the major urban centres.

The task now is to build on the success of the Regional Investment Summit, attracting private investment that helps drive innovation, entrepreneurial flair and energy, supported by national investment into improved regional infrastructure and facilities. There is much to be positive about – there is so much that can be achieved given the solid foundations that already exist in the Midlands. The same is true of other regions around the UK. As a country, we are a stable and attractive investment proposition, while the government’s Industrial Strategy has set a clear vision of the path ahead, supported and complemented by Regional Growth Plans around the UK.