Mayor welcomes £385 million devolution deal for West Midlands

For the first time, the authority, led by mayor Richard Parker, will be allowed to spend the money as it sees fit, whereas in previous years it received separate grants earmarked for different areas.

The change follows an announcement made in Rachel Reeves' first Budget in October, when the Chancellor said the West Midlands and Greater Manchester combined authorities would be given greater freedom on how they spent their funds.

Similar settlements area also planned for the North East, Liverpool City Region, West Yorkshire and South Yorkshire mayoral authorities.   

Angela Rayner, Secretary of State for Housing Communities and Local Government said it would give Mr Parker and the authority the opportunity to deliver change.

“Our country and local leaders have been held back for too long by outdated systems and bureaucratic box ticking exercises, stifling growth and ambition," she said.

“West Midlands will now hold the reins on its own priorities – driving forward meaningful change for working people from building more affordable homes to day-to-day running of buses.  

“This is our devolution revolution in action, and we are bringing forward this more flexible funding for more mayors next year to spread opportunities and growth to every region.” 

 Mr Parker said the settlement demonstrated the Government's strong confidence and commitment in transferring more powers and responsibilities from Whitehall to the West Midlands.

He said: “That means every penny can be targeted where it will have the biggest impact, on the things that matter most to people like jobs, affordable housing and better transport, all key priorities for me.

“This initial pot of money as just the start of a succession of multi-year settlements for the region. In return I will use that money to make bold, long-term decisions that create real opportunities for local people, making sure no community is left behind.”