As Director of Business, Investment and Culture at Coventry City Council, my role is to capitalise on that investment opportunity, to ensure our city’s economy flourishes; jobs are created and skills are developed; and that our citizens live rich and fulfilling lives.
The Budget announced by the Chancellor of the Exchequer, Jeremy Hunt MP, is the defining moment in the year when the Government sets out the policies, frameworks, and parameters to enable our growth and prosperity. While our citizens will rightly be interested in the headline announcements around the energy price guarantee and the fuel duty freeze, my role is scratch the surface and consider the bigger picture and longer-term proposals and how they impact on our city and the wider West Midlands region. There are several eye-catching announcements we will be probing further and seeking to advance.
As trailed in the weekend media (and arguably in Kwasi Kwarteng’s Mini Budget in September 2022), we saw the announcement of Investment Zones. With £80m on the table, and the West Midlands already identified as one of the 12 locations, we will use our convening power to collaborate with academic institutions, business and others to the secure benefit from opportunity.
There are some extremely attractive fiscal incentives on offer including a Stamp Duty Land Tax relief, Business Rates relief, Enhances Capital Allowances, Enhanced Structures and Buildings Allowance, and Employer National Insurance Contributions relief. As we continue to attract direct investment to the city, securing an Investment Zone will act as a spur for prospective investors, and could enhance our status as geographical cluster for innovation in the automotive, engineering and manufacturing sectors.
Secondly, we saw new powers, freedoms and financial flexibility awarded to the West Midlands Mayor to take further control of transport, housing and skills. Andy Street alongside other Metro Mayors has long-argued that the key to regional growth and prosperity is the devolution of infrastructure investment and skills. Coming into effect after the Spending review in 2024, the single pot of flexible funding will mean we don’t need to go cap in hand to Whitehall to demand funding, that allocation will be made at a regional level, and hopefully reducing the need for constantly bidding for individual grants from remote officials in Whitehall.
Retaining 100% of business rates are another key step in the journey towards greater fiscal devolution for the region. And gaining powers over skills provision will mean we can match our commercial growth sectors with local skills provision. As Director of the West Midlands Growth Company, I warmly welcome these changes.
We will be considering the Government’s proposals to tackle labour market shortages. Coventry Job Shop has a formidable track record in matching employers with employers. As the Job Shop moves into its new home, proposals such as over 50s Returnerships; the Staying Close programme to help more care leavers into employment; and Universal Support, the voluntary employment scheme for disabled people will be explored further.
And finally, we learnt about the demise of Local Enterprise Partnerships (LEPs). Many people have long argued that local economic development is best managed by local councils. In addition to greater democratically accountability, we are far better positioned to drive strategic economic development, to use our convening power to facilitate local partnerships, and attract the investment and skills our city needs.
Announcements around full capital expensing will result in investment in IT, plant and machinery; R&D tax credits for specific firms; and tax relief for energy efficiency schemes will be welcomed by business in Coventry.
So there is plenty for Coventry’s thriving businesses, SMEs, freelancers, sole traders and entrepreneurs to get into. The Business, Investment and Culture team will continue to explore these opportunities and engage partners and the community. Come and let us know what you think.
The Chancellor’s Budget Speech can be viewed at: https://www.gov.uk/government/speeches/spring-budget-2023-speech
Andy Williams is Director of Business, Investment and Culture at Coventry City Council
