This week in West Midlands Combined Authority:

£406 Million Transport Funding Allocation Approved Amidst Calls for Black Country Clarity

The West Midlands Combined Authority (WMCA) Board met on Friday 11 September 2026, approving the allocation of £406 million in Transport for City Regions (TCR) capital funding. This significant sum will be split equally between Growth Corridors and Network Needs, aiming to accelerate transport projects across the region. While the principles for allocation were agreed, some councillors raised concerns about the clarity of funding for the Black Country.

Shaping the Region's Transport Future

The WMCA Board endorsed the allocation of the remaining £406 million in TCR capital funding. This funding is crucial for strengthening strategic transport links and improving budget management. The allocation will be split equally between Growth Corridors, which focus on housing and economic development, and Network Needs, covering public transport, highways maintenance, and road safety.

The Board also approved the acceptance of up to £700 million in new debt and grant-based investment tools, including the Mayoral Revolving Growth Fund, the Housing Acceleration Fund, and the City Densification Fund. These funds are designed to facilitate new, recyclable investment, with the aim of capturing returns to fund future projects. To manage these sophisticated financial instruments, the WMCA plans to increase capacity within its Investment Team, with revenue support provided by the government.

Councillor Patrick Harley, representing the City of Wolverhampton Council, welcomed the funding but sought greater clarity on the specific allocations for the Black Country. He noted that while £150 million was mentioned for Black Country growth corridors, the overall position, including network needs, was less clear. We probably did with a bit more clarification there, he stated, adding that the report doesn't provide sufficient information to establish our actual allocation or expected benefit. He also stressed the need for Black Country authorities to have a clear and equitable role in the governance of both Black Country portfolios.

Mayor Richard Parker acknowledged these concerns, committing to making funding allocations more explicit and ensuring Black Country authorities have a real role in the governance and oversight of projects in your boroughs.

The Board also approved a revised members' allowances scheme, increasing the Mayor's allowance to £105,035 and setting the Deputy Mayor's allowance at £27,309.10. New allowances were also recommended for Commissioners and Vice-Chairs of committees.

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Addressing Rough Sleeping with Dedicated Funding

The WMCA Board received the first quarter financial monitoring report for 2026/27, which indicated a forecast increase in corporate income of approximately £10 million, largely due to higher interest rates and additional grants. This positive income is offset by a pressure on business rates income. The report also detailed a revenue underspend of £7 million for the previous financial year.

Crucially, the Board approved the proposed allocations of the Rough Sleepers grant to local authorities. This funding is vital for supporting vulnerable individuals facing homelessness. The Mayor highlighted his recent visit to Coventry City Council's rough sleeping team, noting the incredibly traumatic lives of those experiencing homelessness and the need for a collective response involving health, local government, and housing services. This grant allocation is a direct step towards addressing these critical needs.

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Bus Reform Progress and Project Robin Update

The Mayor provided an update on the ongoing bus reform programme, highlighting the success of Project Robin, which has secured bus services across the region. He noted that the franchising model is now being rolled out nationally. He also thanked Dudley Council, its leader Councillor Patrick Harley, and chief executive for their leadership in responding to the recent fires in Stourbridge, praising the community's response and the support provided to those who lost their homes.

The Mayor also addressed the situation facing JLR, stating that the WMCA's skills team had identified funds to support those who may lose their jobs. Part of our job is helping ensure this isn't support for JLR, but supporting those workers to ensure that we can retain them in this region, he said.

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State of the Region Report Highlights Strengths and Challenges

The Local Scrutiny Committee met on Monday 7 September 2026, to discuss the West Midlands State of the Region 2026 report. The report, a statutory requirement, provides an overview of the region's economic and social conditions, highlighting both its strengths and areas requiring urgent attention.

People: A Young Population Facing Persistent Inequalities

The report identifies the West Midlands' young demographic, with a median age of 37.4 years, as a significant strength. However, it also points to persistent challenges, including ethnic inequalities, poverty, and labour market barriers. Over a third of children in the WMCA area live in poverty, and apprenticeship statistics remain considerably below levels seen a decade ago. Councillor Jamie Campbell raised concerns about child poverty indicators worsening despite economic growth, asking for evidence that WMCA investment is reducing inequality.

Businesses: Recovery and Innovation Amidst Skills Shortages

The region's economy has largely recovered from the pandemic, with GDP above pre-pandemic levels and increasing investment in research and development. However, the report flags graduate retention as a key challenge, with only about half of graduates staying in the region. Concerns were also raised about the impact of artificial intelligence on entry-level job opportunities. Councillor Keith Allcock highlighted the skills mismatch in apprenticeships, particularly for small and medium-sized engineering companies.

Places: Progress in Transport and Connectivity, but Housing Insecurity Looms

Significant progress is being made in transport, digital connectivity, and environmental sustainability. However, housing affordability and insecurity have emerged as major barriers to inclusive growth. The report notes that many households spend almost 30% of their income on rent, and the number of households seeking homelessness support has increased. Councillor Izzy Knowles highlighted the interconnectedness of these issues, questioning how the report's findings would be used to address housing insecurity and safety on public transport.

Story: Encouraging Talent to Stay and Thrive

The report underscores the challenge of retaining young talent, with many leaving the region for opportunities elsewhere. Lower levels of volunteering and a perceived limited influence over local decision-making were also noted. The report suggests that to make the West Midlands the best place to live, work, and visit, the region must create opportunities and a quality of life that encourages people to stay.

The committee also discussed the bus reform programme, with Natalie Penrose providing an update on the West Midlands Bus Franchising Programme. The WMCA will act as the client organisation, setting the vision and managing contracts with bus operators, who will be responsible for operational delivery. The programme is on track, with invitations to tender for Tranche 1 contracts released on 17 August 2026.

Learn more about the Local Scrutiny Committee meeting

This week in West Midlands Combined Authority:

£405 Million Transport Funding Allocation Principles Agreed Amidst Project Delays

The West Midlands Combined Authority (WMCA) Investment Board met on Monday 17 August 2026, to discuss the allocation of significant transport funding and review the progress of the region's investment programme. A key decision involved noting the principles for distributing the remaining £405 million of Transport for City Regions (TCR) funding, a crucial pot aimed at improving regional connectivity. While the principles were agreed, the meeting also highlighted ongoing challenges with several major projects, some of which have been delayed beyond their original completion dates.

Shaping Future Transport: The £405 Million Allocation

The Board noted the principles that will guide the allocation of the remaining £405 million in Transport for City Regions (TCR) funding. This funding is vital for ensuring that transport investment effectively supports regional growth and maintains the existing network. Sandeep Shingadia, Executive Director of Transport for West Midlands, explained that the new approach introduces a five-stage assurance process for capital projects. This process aims to give the Investment Board a more strategic and influential role, moving beyond simply signing off projects at the end.

The principles aim to ensure that projects are prioritised based on clear criteria, with an independent panel of experts to be appointed to advise the Investment Board on scheme prioritisation and business case approvals. This is a significant shift from previous funding rounds, where projects were sometimes developed and funded without sufficient strategic alignment or robust assurance. The aim is to create a more agile and streamlined process, preventing the repeated re-baselining of programmes that occurred with the previous City Regions Sustainable Transport Settlement (CRSTS).

The Board also heard that there is substantial demand for this funding, with approximately £3 billion worth of projects potentially eligible. This means that the allocation process will be highly competitive, and the agreed principles will be critical in determining which projects receive support.

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Investment Programme Dashboard: Red-Rated Projects Highlight Delivery Challenges

The Investment Board was presented with an update on the WMCA Investment Programme, which revealed that eight projects are currently rated as 'red', indicating significant delivery challenges. These projects are facing delays due to various factors, including land assembly issues, contractual disputes, and ongoing testing and commissioning phases.

Several projects in Solihull are among those flagged as red-rated. These include:

• Accelerated Housing Delivery – Utilising Solihull Assets: This project is facing delays and requires an additional £424,000, extending its timeline by six years.
• Playing Pitch Implementation Strategy: The completion date has been pushed back to April 2032, with the first outline business case for a sports hub now expected in April 2029.
• Middlewood House: This project, aiming to deliver affordable net-zero homes, is seeking a budget increase of £450,000 and an extension to June 2027.
• Rowood Drive: This project, intended to prepare a former playing field for housing development, is expected to extend its expiry date until August 2028.
• Chelmsley Wood: Regeneration plans for this area are facing delays of up to three years due to land acquisition negotiations.
• Solihull Town Centre Public Realm Improvement Scheme: This project is experiencing delays in progressing its outline business case.

Councillor Lynnette Kelly raised concerns about the geographical concentration of red-rated projects in Solihull, questioning whether local plan issues or officer capacity were contributing factors. She stressed the need for lessons to be learned from these delays to streamline future project delivery.

Other red-rated projects include:

• A46 Stoneleigh Junction: Delays are attributed to a contractual dispute with the main contractor, with a further extension requested to September 2027. Councillor Kelly highlighted the ongoing traffic issues caused by this prolonged disruption.
• Metro Wednesbury to Brierley Hill Extension Phase 1: While construction is complete, testing and commissioning are ongoing, preventing formal completion.

The Board noted that the WMCA Investment Programme has an approved affordable limit of £871 million, which is fully utilised. As of July 2026, funding commitments stood at £836.5 million. A downward adjustment in costs was primarily due to a refund from the government for work on the metro.

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Oasis Southside Birmingham Receives Green Light for Housing Development

The Board gave approval for the WMCA to enter into an agreement with an applicant to provide grant funding from the Brownfield Infrastructure and Land Fund (BILF). This funding will enable the development of a minimum of 456 homes at the Oasis Southside site on Lower Essex Street, Birmingham. Authority has been delegated to the Director of Commercial and Investment to negotiate the terms of the grant funding agreement, including clawback provisions and a long-stop date. The WMCA will also charge £300,000 in project costs to the BILF for the assessment, negotiation, and contract management of the grant funding agreement. This development is expected to contribute significantly to the region's housing supply.

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Other Matters

The Board also noted the public information dashboards for the Commercial Investment Fund (CIF), Residential Investment Fund (RIF), and the Brownfield Land & Property Development Fund (BLPDF). These dashboards provide an overview of committed and repaid investments, including details on jobs created, brownfield land utilised, homes created, commercial space, and business rates generated. The Forward Plan, outlining upcoming reports and decisions for future Investment Board meetings, was also noted.

This week in West Midlands Combined Authority:

Investment Zone Board Grapples with Quorum Issues, Decisions Become Recommendations

The West Midlands Combined Authority (WMCA) Investment Zone Board met on Wednesday 29 July 2026, but a lack of a quorum meant that any decisions made will be recommendations to the full WMCA Board in September. The meeting focused on updates regarding the three priority investment zones: Birmingham Knowledge Quarter, Coventry and Warwick Investment Zone, and Wolverhampton Green Innovation Corridor, alongside regional business support programmes.

Progress Reports from Key Investment Zones

The board received updates on the ongoing development of the region's priority investment zones.

Birmingham Knowledge Quarter (B-KQ)

The Birmingham Knowledge Quarter is seeing continued progress with the launch of Aston University's Innovation Place prospectus and Woodbourne's Birmingham BioCity. Birmingham City Council is developing a Strategic Regeneration Framework to guide future development and investment. While transport projects like the Super Crossing and Active Travel schemes are progressing through the WMCA's assurance process, they are experiencing some delays. The B-KQ was also actively promoted at the UKREiiF event.

Coventry and Warwick Investment Zone (CWIZ)

The Coventry and Warwick Investment Zone is advancing well, with planning applications moving forward and infrastructure works, including a 30MVA power supply to Greenpower Park, on track. The cessation of airport operations has significantly accelerated infrastructure delivery. There is notable investor interest, particularly from major battery manufacturers, with the CWIZ being a finalist for a Gigafactory location. Discussions are ongoing regarding skills development and ensuring local employment benefits from these developments.

Wolverhampton Green Innovation Corridor (GIC)

In Wolverhampton, the Green Innovation Corridor is nearing the finalisation of its capital funding agreement, which will enable remediation works on four sites. An Innovation District Masterplan is being developed, attracting market and developer interest. The council is also focusing on outreach to local businesses and developing a Green Skills Hub in partnership with the University of Wolverhampton to benefit the wider Black Country region.

Regional Business Support and Skills Initiatives

Updates were also provided on the broader regional business support programmes funded by the Investment Zone.

Supply Chain Transition Programme

Launched in September 2025, this programme has seen accelerated delivery with strong uptake from SME manufacturing businesses. The Electric Light Vehicle and Battery Manufacturing, and Aerospace clusters have generated the most interest, alongside a growing demand from SMEs looking to diversify into the Defence sector. The programme offers business advice, R&D grants, and skills training.

Midlands Mindforge

The equity investment company, Midlands Mindforge, has made four investments and anticipates a strong pipeline of further deals. This initiative aims to demonstrate the demand for early-stage equity investment in the region and attract larger funders.

Skills Programme

Recognising the critical need for skills development, the Investment Zone is supporting various initiatives. This includes the creation of modular, flexible training provision for higher-level skills, particularly in sectors like battery technology, clean energy, and medtech. A contract for a Med-Tech course is set to launch, offering incentives for trainees and employers. The programme also supports expanded Job Rotation pilots to help residents access improved opportunities and strengthen internal business capacity.

Financial and Investment Updates

The board reviewed the financial statement, noting a cumulative underspend of £5.2 million which has been approved for carry forward. Forecasts indicate a potential funding deficit in the coming years, but flexibility within the Integrated Settlement is expected to help manage these variations. The West Midlands Growth Company has been allocated £500,000 for investment and promotion activities, focusing on targeted marketing and engagement with international investors.

Board Membership Recommendations

The board was recommended to approve the appointment of the University of Birmingham and the West Midlands Innovation Board as non-voting members. This move is intended to provide a broader range of expertise on the region's innovation ecosystem and enhance strategic alignment.

Learn more about the Investment Zone Board meeting

This week in West Midlands Combined Authority:

£8 Million Greenlit for Kingshurst Regeneration, But Concerns Linger Over Value for Money

The West Midlands Combined Authority (WMCA) Investment Board met on Monday 20 July 2026, approving £8 million in grant funding for Phase 2 of the Kingshurst Village Centre Regeneration project. This significant investment aims to deliver a new community, health, and retail building in an area facing considerable deprivation. However, the decision was not without its critics, with concerns raised about the clarity of project objectives and the affordability of the scheme.

Kingshurst Regeneration: A Vital Hub with Caveats

The approval of the Full Business Case for £8 million in grant funding for Phase 2 of the Kingshurst Regeneration project is a crucial step towards revitalising the village centre. This phase will deliver a much-needed community, health, and retail building, addressing significant health and social inequalities in the Kingshurst area. The project is expected to contribute to inclusive growth and align with the WMCA's strategic priorities.

However, the appraisal process highlighted potential issues. The appraiser noted that they were unable to independently verify the BCR or VfM category. There is a risk that VfM conclusions may be unreliable, potentially undermining the investment decision. ¹ Furthermore, a substantial portion of the funding was not yet secured and relied heavily on loans. Despite these concerns, the project was deemed to represent high value for money, with a Benefit-Cost Ratio (BCR) of 2.7:1, provided that the tenant mix remains consistent for the building's 60-year lifespan and no further public funding is required for increased costs.

The approval is conditional on Solihull Metropolitan Borough Council's Cabinet approving the project's progression to Phase 2 on 17 September 2026, and the submission of updated Benefits Realisation and Monitoring and Evaluation Plans. Authority has been delegated to the Executive Director/Investment Programme SRO to negotiate the terms of the Grant Funding Agreement.

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Smith's Garden Development Promises New Homes

The Board also approved the WMCA entering into an agreement to provide grant funding for the development of up to 550 housing units at Smith's Garden, Camp Hill, Birmingham. This development will include a minimum of 19 affordable housing units, contributing to the region's housing needs. Authority has been delegated to the Director of Commercial and Investment to negotiate the terms of the agreement. The WMCA will also charge £164,000 in project costs to the Brownfield Infrastructure Land Fund or another suitable fund.

Redford Developments Loan Extended

In a separate decision, the Board approved the extension of a loan to Redford Developments (formerly Rainer Developments) for a term of 18 months. This loan is part of the Commercial Investment Fund/Residential Investment Fund. Authority has been delegated to the Director of Commercial and Investment to negotiate and approve the final terms.

Investment Programme and Transport Funding Updates

The meeting also included updates on the broader Investment Programme. It was noted that since the previous meeting, no new business cases or change requests had been approved by WMCA Officers under delegated authority. Councillor Lynnette Kelly raised questions about change requests and projects that had missed their completion dates, prompting a discussion about the need for more robust training on the investment programme's mechanics. A private session is to be arranged to address this.

Philip Havenhand, Programme Lead for the City Region Sustainable Transport Settlement (CRSTS), reported good progress on the CRSTS programme for Quarter 4 of the financial year 2025/26. £639 million of the total £1.182 billion CRSTS grant had been spent by 31 March 2026. The programme is over-programmed to £1.467 billion to maximise spend and delivery by March 2027, with remaining funding to be carried forward into the Transport for City-Region (TCR) spend period, extending delivery through to 2032. Councillor Steve Clark inquired about the allocation of funding between previous administrations and new pipelines, and Councillor Dave Pinwell suggested a future report should detail underspends in local authorities to ensure maximum utilisation of funds.

Dashboards for the Commercial Investment Fund (CIF), Residential Investment Fund (RIF), and Brownfield Land & Property Development Fund (BLPDF) were also presented, detailing committed and repaid investments, jobs created, and development outcomes.

Learn more about the Investment Board meeting