Local Government Secretary Hazel Blears is to meet MPs for discussions about how the West Midlands’ bid for city region status can be saved.
The Government’s decision to grant extra autonomy and fund-raising powers to Manchester and Leeds – while rejecting proposals from Birmingham and neighbouring authorities – has sparked a furious reaction among business leaders.
But leading local MPs including Ian Austin (Lab Dudley North), the Minister for the West Midlands, Liam Byrne (Lab Hodge Hill), the Minister for the Cabinet Office, and Richard Burden (Lab Northfield), chair of the West Midlands select committee, hope to keep the plans alive.
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Mr Byrne and Mr Austin have arranged a meeting between Ms Blears and the region’s MPs, along with councillors and business leaders.
They will ask Ms Blears how the West Midlands can press ahead with its plans for dramatic improvements to public transport, including the long-awaited extension to the Black Country Metro.
One option is to bid for more autonomy through a multi-area agreement, in which councils agree to develop joint economic and skills strategies in return for more autonomy.
The city region proposal, drawn up by Birmingham, Coventry and the Black Country councils, would have allowed the region to borrow money to promote economic growth, repaying the cash from business rates. It would also have given councils control of the region’s annual £170million skills budget.
Mike Whitby, leader of Birmingham Council and chair of the city region bid, predicted it could create 44,000 jobs.
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But Alistair Darling, the Chancellor, announced in his Budget statement that the West Midlands would not be one of the pilot areas chosen to introduce city regions. In response, Chamber chairman Jerry Blackett said he was “mystified” by the decision and warned it would “provide much ammunition to those looking for evidence that businesses in the West Midlands don’t count for much with this government”.
Budget documents stressed that the Government is keen to continue talking to West Midlands authorities, following lobbying by Mr Austin who urged Ministers to leave the door open for the region. Coun Whitby has also said he would “persevere” with the proposals. Mr Austin said: “I’m pleased to say that Hazel Blears has agreed to meet with me, local authorities and other local MPs to discuss the next steps in helping the city-region achieve its goals. It is vital that the city region leaders work closely with Government to develop these ideas.”
Work and Pensions Secretary James Purnell has also asked senior officials in his department to discuss the city region plans with a view to boosting employment and skills. But Mr Burden warned that local authorities should also recognise they need to improve how they make their case. They had failed to consult MPs as they drew up plans, or to involve them in lobbying Government.
Mr Burden said: “We do need to talk things through with Ministers. For example, what they hope to achieve with city regions and what the strong points were of the Leeds and Manchester bids.
“The other thing we need to do is talk to the city region board and make sure we understand what they are trying to do.”