Building fund welcomed by West Mids leaders
Business leaders have welcomed the news that the West Midlands' LEPs will share £50m to fund building projects in the region. Greater Birmingham and Solihull's organisation was handed the region's largest share of £14.9m.
The government’s £500m Growing Places Fund is designed to help boost economic growth by funding infrastructure projects.
Along with Greater Birmingham and Solihull's share, Stoke and Staffordshire was handed £7.6m; the Marches was given £5.4m; the Black Country £9.6m; Worcestershire £3.6m and Coventry and Warwickshire £8.5m.
Jerry Blackett, chief executive of Birmingham Chamber of Commerce Group, said: "This is a very welcome gesture of faith from the government in LEPs generally and Greater Birmingham and Solihull in particular. It should give a welcome shot in the arm to the construction industry, which has been badly hit in the current economic climate."
He urged the LEP to remain focused on "the larger picture", adding: "The LEP must seek to maximise its influence over mainstream budgets for things like employment and skills and major transport projects. Of course it is useful to win additional monies but the new sums are very small compared to, for example, the £6bn - £7bn of taxpayers' money that gets spent just in Birmingham each year."
Denys Shortt, chair of the Coventry and Warwickshire LEP, said the money was to be used as a free-up potential in the economy.
He said: "The government knows that there are developments which would probably be off the ground by now but have been stalled because of the lack of funding for the basic infrastructure. That could range from providing link roads into new developments or extending dual carriageways.
"The LEP was formed to stop blockages in the economy – and this is the most physical form of that. We will now be identifying priorities and the how the funding can best be allocated to maximise the economic return."
Ministers suggested that the Growing Places funding could be used for projects including development of strategic link roads and access works to unlock major mixed-use developments.
All £500m will be allocated before the end of January, confirmed the government.
Chief secretary to the Treasury, Danny Alexander, said: "The half-a-billion pound Growing Places fund will kick start local developments across the country.
"This is a flexible fix-it fund that will make a real difference on the ground, improving the lives of local residents and boosting the local economy. From building strategic link roads to reducing congestion, the investment will set businesses free and create jobs."
