7 September 2010

Minister unable to dispel confusion on support for the West Midlands -

Earlier today I led a House of Commons debate on ‘Government policy on the West Midlands’. In the debate I called on government ministers to listen to the voice of the West Midlands and to dispel the confusion surrounding the future of government support for the region.

Our region has been hit hard by the economic downturn. We have started to come through, but the recovery is fragile and the danger of a double-dip recession is a real one.

The coalition government is cutting back on areas like housing and school rebuilding whilst hitting poorest households hardest with increases in VAT, cuts in benefits and dramatic reductions in public spending. The government’s policies have led to the downgrading of growth forecasts and predictions of higher unemployment – the implications for the West Midlands are serious.

There is also a huge amount of uncertainty about what support the government will provide to the West Midlands and how it will do so. This uncertainty is adding to the vulnerability of our regional economy and I am very disappointed that Bob Neill, minister in the Department for Communities and Local Government, was unable to shed much light today on the government’s plans.

In the debate I raised:

> concerns about the impact of the coalition government’s decisions on the people, communities and economy of the West Midlands

> the findings of inquiries by the West Midlands Regional Select Committee, which I chaired in the last Parliament, including the need for public investment in affordable housing and the need for Westminster to look at regional issues in a more coherent way

> questions about the government's plans to scrap the Regional Development Agency, Advantage West Midlands, and what will happen to the programmes that they are involved in, such as the Longbridge regeneration

 > concerns about lack of clarity over plans for Local Economic Partnerships (LEPs) including reports that the current budget of £1.5b over 1 year for RDAs will be slashed to £1b over 2 years for LEPs with no guidance on how this money can be spent

You can read a copy of the full debate online here