The Local Scrutiny Committee met on Monday 7 September 2026. The meeting was scheduled to discuss the West Midlands State of the Region 2026 report and receive an update on bus reform. The appointment of a Mayoral Commissioner was deferred due to process concerns.

Mayoral Commissioner for Communities and Public Services

The Chair, Councillor Edward Fitter, announced that the item concerning the Mayoral Commissioner for Communities and Public Services would be deferred. This decision was made following advice from the monitoring officer, as questions had been raised regarding aspects of the appointment process and adherence to government guidance. The authority requires additional time to complete a review before the matter can be considered by the committee. Councillor Fitter emphasised that this deferral was not a reflection on the candidate but on the authority's process.

West Midlands State of the Region 2026

Si Chun Lam, Head of Research, Intelligence and Inclusive Growth, presented the West Midlands State of the Region 2026 report. The report, a statutory requirement under the Local Democracy, Economic Development and Construction Act 2009, provides a high-level annual overview of the region's economic and social conditions. It is intended to serve as an objective evidence base for policymakers and stakeholders, and to be accessible to residents.

The report is structured around four pillars of the West Midlands Growth Plan: People, Businesses, Places, and Story.

• People: The region has a young demographic, with a median age of 37.4 years, presenting a strong foundation for future growth. However, significant challenges remain, including ethnic inequalities, poverty, and labour market barriers. While educational outcomes are improving, over a third of children in the WMCA area live in poverty, and apprenticeship statistics are considerably below levels seen a decade ago.
• Businesses: The West Midlands economy has largely recovered from the pandemic, with GDP above pre-pandemic levels and increasing investment in research and development. The region ranks fourth in England for R&D investment per capita. However, graduate retention is a key challenge, with only about half staying in the region after graduation. Concerns were also raised about the impact of artificial intelligence on entry-level job opportunities.
• Places: The region is making progress in transport, digital connectivity, and environmental sustainability. However, housing affordability and insecurity have emerged as significant barriers to inclusive growth. While digital connectivity is improving, with 94% gigabit broadband coverage, housing affordability remains a concern, with many households spending almost 30% of their income on rent.
• Story: The report highlights the challenge of retaining young talent, with many talented individuals leaving the region to pursue 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, a sense of belonging, and a quality of life that encourages people to stay.

Councillors raised several points regarding the report's presentation and content. Councillor Jackie Gardiner suggested that presenting data in lists rather than dense paragraphs would improve accessibility. Councillor Rose Martin discussed the uneven nature of growth across different centres within the region, and the efforts being made to address this through the Growth Plan and investment prospectus, specifically mentioning Wolverhampton and Walsall. Councillor Tuli Zefi questioned the presentation of carbon emissions data, particularly the use of per capita figures and the inclusion of the airport's impact in Solihull's figures. Councillor Rupinder Singh requested comparative data and insights into why certain areas perform better than others, and asked about the benefit of large projects like HS2 for local employment. Councillor Izzy Knowles highlighted the interconnectedness of the four themes and asked how the report's findings would be used to address issues like housing insecurity and safety on public transport. Councillor Martin also inquired about apprenticeship figures for Walsall and the recovery plan. Councillor Jamie Campbell raised concerns about child poverty indicators worsening despite economic growth and asked for evidence of WMCA investment reducing inequality. Councillor Keith Allcock provided insights into the skills mismatch in apprenticeships, particularly for small and medium-sized engineering companies. Councillor Zefi questioned discrepancies in employment rate figures presented in the report. Councillor Kevin Carmody asked about the inclusion of road safety statistics, and Councillor Gardiner requested data on climate resilience and support for SMEs. Councillor Knowles reiterated the importance of road safety statistics and the barriers for SMEs in taking on apprentices. Councillor Rupinder Singh asked about the possibility of requesting specific data analysis from officers. Councillor Martin questioned how the report's findings would translate into accountable actions.

In response, officers clarified that the report is contextual rather than performance-based, but that an evidence-based approach is fundamental to WMCA's policy-making. They acknowledged the feedback on presentation and committed to exploring improvements for future editions. Data on total carbon emissions and breakdowns were offered, and the potential for international comparators was discussed. The challenges of tracking NEETS and the responsibility of local authorities were explained. The report's role as a resource for the whole region was emphasised, and the importance of addressing inequality alongside GDP growth was acknowledged. The complexities of data collection and protection were highlighted, and the potential for future scrutiny of specific topics was welcomed.

Bus Reform Update (Bus Franchising)

Natalie Penrose, Director of Bus Reform, provided an update on the West Midlands Bus Franchising Programme. She explained that the WMCA Board decided to franchise bus services in May 2025, following public consultation which showed 75% support. The programme will be delivered in three geographical tranches, with the first going live in Autumn 2027, the second in Summer 2028, and the final tranche in Spring 2029, at which point the entire region will be fully franchised.

Under franchising, the WMCA will act as the client organisation, setting the vision, strategy, and outcomes, and controlling and managing contracts with bus operators. The operators will be responsible for operational delivery, including running bus routes, employing drivers, and maintaining the fleet.

Significant progress has been made, including the appointment of the programme team and expert partners, the establishment of governance structures, and decisions on fleet and depot acquisition. Invitations to tender for Tranche 1 contracts were released on 17 August 2026, with submissions expected before Christmas. Evaluation of tenders will take place between January and March 2027, with contract awards in April 2027.

Key forthcoming milestones include the clarification and dialogue period with Tranche 1 bidders in September and October 2026, final tender documents in early November, and operator submissions by 18 December. The programme is on track for budget and timeline delivery.

Councillors raised questions regarding delivery risks, customer service interfaces, potential changes to routes and services, the possibility of a single company winning all tenders, and the eligibility of previous providers to bid. Concerns were also raised about quality assurance for cleanliness and punctuality, and the mechanism for incorporating public consultation on routes into the scrutiny process. The financial operating model and commitment to reinvestment were also queried.

Natalie Penrose assured the committee that customer service would be streamlined through a single contact centre, and that while network changes would not be immediate, franchising would provide control over future route planning. Restrictions are in place to prevent a single company from winning all tenders. Mobico Group, the previous provider, is not restricted from bidding if they meet the franchising requirements. Standards for cleanliness, punctuality, and reliability have been built into contracts, with incentives and penalties. The financial operating model and commitment to continuous improvement will be brought back to scrutiny once contracts are awarded. The process for consulting on routes will be shared with scrutiny for review. Measurable improvements in transport affordability, reliability, and safety are expected through contract metrics. The impact on the safer travel team is still being determined, but the WMCA will have responsibility for revenue protection.

Items to Review/Consider

The committee noted progress on existing actions, reviewed the work programme, and considered the WMCA Board Forward Plan. The Chair highlighted that the work programme would be further developed in a dedicated session.

Exclusion of the Public and Press

The committee resolved to exclude the public and press from the meeting for the remaining item of business, which was private.