Exchequer Secretary to the Treasury Addresses Key Growth Strategies at West Midlands Summit

Thank you, Elizabeth, for that warm introduction and for having me here today.

It is a pleasure to see so many partners in attendance, and to be in the West Midlands—a region renowned for its pivotal role in the industrial revolution, its historical figures such as Joseph Chamberlain, the concept of municipal socialism, and of course, the creation of Cadbury’s Dairy Milk.

Today, the West Midlands stands poised for the future, not only as home to world-class manufacturers like Jaguar Land Rover, but also as a hub for a rapidly expanding professional services sector and the innovative businesses that have chosen to launch and scale their operations here.

This momentum is being significantly propelled by your commendable Mayor, Richard Parker. While I initially misread the brochure and thought him to be the youngest mayor in Europe, he is, in fact, leading one of the youngest major cities in Europe—Birmingham.

Plans for the Exciting Sports Quarter

Earlier today, I was briefed on your ambitious plans for the new Sports Quarter. No10 North is playing a crucial role in its development, and together with Richard, the Combined Authority, and Birmingham City Council, we have established a new Coordination Group this month aimed at ensuring the successful delivery of this project.

This kind of collaboration is vital if we are to counteract the persistent trend of rising regional inequality.

Since the 1980s, largely due to changes that took place during that decade, Britain has become one of the most regionally unequal industrialised economies. This has adversely affected the stature of our great cities, eroded industrial communities, and placed excessive pressure on an already overstretched South-East.

It is partly a consequence of how we have been structured over recent decades. Although we possess remarkable strengths, admired globally, we often mismanage fundamental aspects such as decision-making authority.

Empowering Local Institutions

In most major economies, power and resources are less centralised, with robust local institutions that are invested in their communities and empowered to make impactful decisions. Cities typically serve as engines of growth, generating demand and disseminating prosperity to surrounding areas. In stark contrast, while Britain is one of the most urbanised nations, our core cities have been restrained. However, under effective leadership, they are beginning to turn the tide, with much untapped potential still waiting to be realised.

Across Britain, there are outstanding firms and assets. While other countries nurture these clusters, our public sector has often appeared too distant, erratic, and lacking in strategic foresight in terms of where to invest and in what.

The answer lies in our plan to facilitate sustainable growth in every postcode, which includes advocating for greater devolution and public control, thereby creating the right conditions for businesses to flourish—an approach outlined by the Prime Minister just last week.

A Significant Shift in Governance

Many are underestimating the significance of this shift. For the first time in years, we have a Prime Minister who has directly experienced the frustrations of Whitehall bureaucracy. We have a Minister for Growth who is not only active in Westminster but also in No10 North, and we are fortunate to have local leaders who are genuinely connected to the heart of government.

Together, we are driving forward the agenda for sustainable growth. Allow me to briefly outline how I envision this occurring from my position within government.

The journey begins by redistributing power and resources away from Whitehall, thereby establishing a foundation for good growth in every region.

This will be followed by a strategic and focused approach. We cannot tackle every issue simultaneously across the board. Instead, we must be pragmatic about identifying the largest economic opportunities.

Focusing on Urban Areas and Economic Strengths

Our major urban centres are lagging behind their international counterparts. Yet, if we could elevate the productivity of the five largest Mayoral Strategic Authorities outside of London to match the national average, we could potentially add approximately £53 billion to the UK’s economic output.

Thus, in partnership with local leaders, we will concentrate our efforts on the core cities and their surrounding areas that show the highest potential for growth.

Furthermore, we will emphasise our comparative economic strengths, both within and beyond urban centres, by aligning with our existing capabilities and responding to private sector demand—collaborating across the ‘triple helix’, which includes universities, to facilitate the reindustrialisation of our nation.

Foundations for Sustainable Growth

To achieve these goals, we must first establish the foundations of good growth. This begins by regaining control over the essential elements that make a location function effectively—transport, utilities, and the skills system.

It also necessitates devolving authority and responsibility to local jurisdictions, allowing them to take charge of their own futures.

From now on, the growth potential of businesses within the Wolverhampton Innovation Corridor or Coventry Green Power Park will no longer be predominantly dictated by decisions made in Whitehall.

Empowered local leadership will chart long-term plans that the private sector can confidently support, much like what you have accomplished with the West Midlands growth plan.

Radical Devolution and Support for Local Councils

While recent administrations have made strides by broadening the strategic authority model, we now require a far more radical approach.

That is why we are outlining plans for a comprehensive devolution of powers to strategic and local authorities in England. We aim for all regions to have an elected mayor as soon as there is robust local backing.

Alongside this, we will assist local councils in enhancing their financial stability, bolstering high streets, regeneration, and local transport—essential components for growth.

We will transfer genuine fiscal power from the Treasury, and more details on this will be revealed in the upcoming Budget.

Integrated Systems and Infrastructure Development

Later this year, we will publish the ‘Rewiring the State’ delivery plan, which will devolve more powers regarding skills, housing, transport, and innovation, enabling locations to integrate services into a cohesive whole.

In conjunction with devolution and a restructured state, the government will play a pivotal role in equipping every area for success.

This includes improving working conditions—delivering the most significant enhancement of workers’ rights in a generation—and making travel more affordable with the £2 bus fare cap, which will assist more individuals with their daily commutes.

We are also placing a strong emphasis on high streets as vital centres of local economic activity.

Boosting Productivity in Core Cities

On this foundation, we must enhance productivity in our core cities and ensure better connectivity with their surrounding regions—across the Northern Growth Corridor, in Oxford and Cambridge, and throughout major cities in the UK, including here in the West Midlands. Despite its burgeoning population, Birmingham’s effective size has been hampered by inadequate transport networks and congestion.

This has resulted in fewer people having convenient access to central Birmingham and its employment opportunities.

Richard, I commend you for addressing this issue by restoring public control over the bus services, with support from No10 North; enhancing the metro system; and constructing new train stations.

However, these challenges underscore the consequences of years of underinvestment from central government and its historical approach to local governance.

Investing in Integrated Transport and Local Growth

In the 1960s, government policies actually limited Birmingham’s capacity to expand and stifled growth through regional rebalancing measures. That era must not be repeated. This government is committed to taking bold actions.

We are endorsing an integrated transport system, promoting urban density, regeneration, and investment. Our support extends to the Midlands Rail Hub and the expansion of the West Midlands Metro.

Significantly, we are re-evaluating HS2 and charting a sensible course for its delivery, which will facilitate quicker travel to London, alleviate capacity constraints, and stimulate regeneration in Birmingham, Solihull, Coventry, and beyond.

Backing High-Potential Growth Clusters

While supporting city regions, we must also champion high-potential growth clusters, irrespective of their location across the country. The value of this approach has been demonstrated in the past.

Consider the success of the Advanced Manufacturing Park in Rotherham, which was established through strong partnerships between academia, industry, and public-private collaboration.

Two decades ago, the area around Kings Cross station was neglected and in disrepair. Today, it stands as Europe’s leading hub for artificial intelligence. This transformation did not occur by chance; it was the result of a collaborative effort involving private sector innovation, government support, and local council investment.

This is the level of ambition that I know Richard, the council, and Lendlease have for Smithfield and other initiatives, and it was encouraging to hear about that earlier today.

Creating Conditions for Economic Growth

To build upon such successes, it is imperative that we work alongside local leaders and support sectors—including those that naturally cluster outside of major cities—that are best positioned to generate the wealth and jobs our nation requires.

This plan empowers local