Advantage West Midlands has completed a detailed update of its Corporate Plan for the Government and confirmed £1.1 billion worth of funding for projects that will balance support for businesses and communities during the recession with longer term plans to ensure the region is prepared for the economic upturn.
The Government had requested the update in May this year against the backdrop of a global economy which had deteriorated since Advantage West Midlands (AWM) first published its Corporate Plan for 2008-11 in May 2008. The update will enable the Agency to:
Respond effectively to the dramatically changed economic conditions
Provide even greater levels of support to the region’s business.
AWM announced a £64 million package of support in September to set up a loan fund for SMEs, a grant for property developers and more funds for the Manufacturing Advisory Service and Business Link network
Manage the Agency’s financial position responsibly following reductions to its budget over the remainder of the Corporate Plan period including a £48 million cut in Government funding and a reduction in estimated land and property receipts of around £20 million.
The Agency has now re-prioritised its investment plans and undertaken a detailed review of its project portfolio.
In total, AWM has reviewed 906 projects. Of these, 600 are already legally committed and AWM has confirmed that these are unaffected by the review.
A further 184 projects in the pipeline have been confirmed and AWM will continue to develop the projects with partners, with the support of AWM funding.
Together, over their lifetime, these 784 projects will receive £1.1 billion of funding.
Another 122 projects are no longer allocated AWM funding during the current Corporate Plan period.
Mick Laverty, chief executive at Advantage West Midlands, said: “Undoubtedly the review has been challenging for us in terms of making choices and communicating difficult messages to partners.
“The projects affected were still in the approval process – in terms of our day-to-day activity, it’s business as usual.
“Not one legally contracted Agency project has been affected by this review.
“In total, some 784 projects are being progressed – and these will continue to support businesses, help people improve their skills and transform places through physical regeneration and infrastructure improvements.
“Where possible we will work with partners to explore whether there are alternative ways of delivering projects that have been adversely affected.
“We remain absolutely committed to working with partners to deliver the best possible outcome for the West Midlands region – and our revised Corporate Plan reflects responsible financial management of taxpayers’ money during difficult economic times for everyone.”
During the project review, AWM took into account the lessons learned from the National Evaluation (March 2009) on the impact of regional development agency investment, which demonstrated where greatest return on investment can be achieved.
The report showed that overall AWM is delivering £7.45 of benefit to the region for every £1 spent.
The West Midlands Regional Funding Advice, which identifies 20 ‘Impact Investment Locations’ across the region as priorities for investment in transport, housing, regeneration and economic development, was also used as part of the project review’s decision-making process. AWM will continue to support these priority locations following the review.
A snapshot of priority projects around the region includes:
Birmingham – the Birmingham Gateway scheme to transform New Street rail station, the Birmingham International Airport runway extension, redevelopment of the former MG Rover car plant site at Longbridge and development of the city’s Eastside area
Black Country - Bilston Urban Village and i54 technology park near Wolverhampton, Walsall Waterfront and the Business and Learning Campus at Walsall College; the development of Sandwell College and redevelopment of West Bromwich Town Centre
Coventry and Warwickshire – Ansty Park, the flagship technology, research and development site, a number of projects at Warwick and Coventry Universities and the development programme to transform Coventry City Centre
North Staffordshire and Staffordshire - the University Quarter and Business District, as well as the East West Transport Interchange; the Granary at Weston Park
Shropshire - Blists Hill Victorian Town development, near Ironbridge, the Donnington (Telford) Railfreight Terminal, regeneration of Telford town centre, the Shropshire Food Enterprise Centre
Worcestershire – St Clements Gate land assembly in Worcester, Malvern Science and Technology Park and Advanced Sensors Innovation project at Qinetiq; refurbishment of Evesham High Street and the proposed Worcester Technology Park, Junction 6 of the M5.
Herefordshire - the Edgar Street Grid project to develop 100 acres of land at the heart of Hereford city centre
European funding for the region, primarily through the ERDF and RDPE programmes, is unaffected by the review.
Details of the region’s 20 ‘Impact Investment Locations’ can be found here.