Funding for Midlands Engine investment body is scrapped by government

Funding for the "Midlands Engine", a regional body which receives around £1.5 million from the government each year, is set to be curtailed from the end of March.

The move follows a consultation on the future funding of so-called "pan-regional" development bodies, which ended in December last year.

The body was set up by the Conservative government in 2015, intended to create a similar body to the "Northern Powerhouse" which was set up in 2014  to boost economic growth in the North of England.

The organisation provided £18.7 million of enablement funding to the Smithfield Riverside regeneration project in Shrewsbury, and was also an investor in the Station Quarter regeneration scheme in Telford.

A statement from Midlands Engine said the work they had undertaken would "remain a foundation for future regional success".

"The government has confirmed that funding for Midlands Engine will end on 31 March 2025. As a result, we will now be working to conclude our programmes and ensure that the legacy of our work in region-wide collaboration endures," said a spokesperson.

"For over a decade, the Midlands Engine Partnership has brought together local government stakeholders, business leaders, our region’s universities and other partners to attract investment, drive regional growth and amplify the Midlands’ voice on the national stage. We are immensely proud of what we have achieved together and remain committed to ensuring that our collective efforts continue to benefit the region in the years ahead.

"In the coming months, we will focus on supporting our talented staff, bringing key programmes to a close and working with partners to maintain the momentum we have built. We will continue collaborating across the region to ensure a smooth transition and to reinforce the Midlands’ critical role in the UK’s economic future."