Forty key business and civic leaders from across the region met Government Ministers in Birmingham today for fact-finding discussions on how the current tough economic climate is affecting West Midlands businesses, and to launch a regional response to the economic situation.
The Chief Secretary of the Treasury, Yvette Cooper and Liam Byrne, Minister for the West Midlands, were at the ICC as part of a special Cabinet visit to the West Midlands, giving Ministers the opportunity to listen to first-hand economic experiences of businesses and local groups to find out what is happening on the ground.
Talks also focused around the launch of the “The West Midlands Economy – A joint response to changing economic circumstances", a report prepared by Advantage West Midlands on behalf of HM Treasury and the Department for Business, Enterprise and Regulatory Reform, outlining the national and local support available to businesses and consumers during a period of “unprecedented challenges.”
Economic initiatives totalling nearly £64 million were announced in the Economic Outlook document:
Nearly £61 million of infrastructure funds for development, comprising £48 million Gap Funding initiative, until 2010, to encourage commercial property developers into the market, and a £13 million Regional Infrastructure Funding programme that will act as a catalyst to lever additional funding into projects that might not otherwise be delivered in current market conditions.
The launch of a £2.75 million Graduate Recruitment Scheme that will place 2,000 graduates into jobs in small and medium sized enterprises (SMEs) across the region.
In addition, there will be increased capital investment grant support for small and medium sized businesses throughout the region via the Selective Finance for Investment in England (SFIE) scheme.
The Agency is removing the scheme’s £100,000 grant limit for SMEs throughout the region, enabling companies to expand, modernise, boost productivity and create jobs. Nearly £10 million of SFIE was paid out to companies in 2007/08.
Yvette Cooper MP, said: "The West Midlands like every region across the world, is being affected by the twin economic problems of the credit crunch and the high oil and food prices.
”But the West Midlands economy has great strengths to help it get through the tougher times, thanks in part to the major public and private investment and local innovation we've seen in the past ten years.
”We are determined that government will work with the regional and local organisations to help families and businesses through the tougher times, and that includes continuing to support the necessary long term investment for the future of the West Midlands.”
Liam Byrne, Minister for the West Midlands said: "Nothing knocks the Midlands down. The West Midlands faces the future with fantastic foundations – a ‘can-do’ attitude, an economy £30 billion bigger than a decade ago and 100,000 people extra in work.
“Now we're planning £120 billion of public sector investment in the next five years to completely transform skills, science, transport and trade for the region, but frankly I don't want to leave anything to chance. That's why we're launching today the biggest regional response yet unveiled to address this year's slower growth.
“When action is needed, action will be taken by government to back the Midlands spirit.”
Mick Laverty, Chief Executive of Advantage West Midlands, said: “The core strengths of the West Midlands economy should enable us to face up to the global economic impacts of tighter credit conditions and increases in global commodity prices.
“The West Midlands Economic Strategy will influence £25 billion of public sector investment into the region by 2012 – and it’s vital that we keep an open dialogue with our partners across the region to ensure that investment achieves maximum impact, focusing on the right interventions at the right time.
“In the short term, it is important that businesses are clear about exactly what support is offered by Government and by regional and local agencies to help them manage in these difficult times.”
Mr Laverty also highlighted the importance of delivering the West Midlands Economic Strategy, Connecting to Success, launched in 2007 and the related West Midlands Delivery Framework, launched in June 2008.
He said: “Connecting to Success recognises that successful economic performance depends crucially on three key factors – the businesses which make up the economy, the places in which they operate, and the people who comprise the labour force.”