West Midlands Mayor Richard Parker has pledged to deploy a historic share of regional income tax and business rates to deliver more jobs, affordable housing, and improved transport, following Prime Minister Andy Burnham's announcement of the most significant transfer of power from Westminster to the regions in a generation.
New Financial Muscle for Regional Priorities
Parker said the additional revenue from these taxes will give him the financial muscle to drive forward essential requirements for the region. He emphasised that employment opportunities, the skills needed to secure them, affordable housing, and better transport links would be at the centre of his plans, while also helping to ease the cost-of-living burden on residents.
“We've already shown under devolution what we can achieve when we are trusted, smashing government targets on homes, jobs and business support while building new rail stations and Metro routes,” Parker said. “But the financial firepower being given to me by the Prime Minister means we will be able to go even further and faster, delivering the things that really matter to local people.”
Existing Devolution Successes and Future Ambitions
The Mayor pointed to existing achievements in the West Midlands, including fresh Metro tram extensions across the Black Country and Birmingham, five additional railway stations, and a doubling of funding for pothole maintenance. Devolved regeneration powers are already generating prospects for residents, with £5 billion of investment delivering 30,000 jobs in industries such as advanced manufacturing, clean energy, and health tech.
Stripping Whitehall of its ability to obstruct local transport and other infrastructure schemes, alongside handing over control of education for 16- to 19-year-olds, represents considerable new powers, Parker noted. The additional authority will speed up progress already made under the region's existing devolution agreement with the Government.
Greater Control Over Local Services
In addition to a share of income tax and business rates paid by local residents, West Midlands leaders will gain greater control over services that shape people's lives, including housing, transport, skills, jobs, and public services. This includes bringing rail and bus networks under increased local authority, enhancing planning and regeneration capabilities, accelerating approvals for major transport projects such as trams, and giving Mayors authority over 16–19 funding and employment support.
“The Prime Minister trusts us to deliver,” Parker said. “He knows how much more we can achieve by putting further powers and funding into the hands of local people – who have skin in the game. Local decisions are better decisions and that means more local lives changed for the better.”
Impact on Residents and Regional Growth
The new powers aim to build on the region's economic momentum, targeting sectors like advanced manufacturing, clean energy, and health technology to create sustainable jobs. Parker's commitment to affordable housing and improved transport is expected to address longstanding needs, while easing the cost-of-living burden through local decision-making.
With the ability to fast-track infrastructure projects and tailor education and skills training to local needs, the West Midlands is poised to accelerate its growth trajectory. The devolution deal marks a shift in how the region is governed, placing more financial and decision-making power in the hands of local leaders rather than Whitehall.
