Government Funding for Midlands Engine Faces Potential End

Reports indicate that an organization established to provide the Midlands with a voice comparable to the Northern Powerhouse is expected to lose its funding. The Conservative government established Midlands Engine in 2015. However, some of its responsibilities have become redundant due to the introduction of elected mayors for the West Midlands in 2017 and the East Midlands in 2024. Midlands Engine stated that discontinuing government funding would “see us lose critical regional economic connectivity and collaboration at precisely the moment when government is striving to deliver economic growth”. The government confirmed it is consulting on discontinuing funding for Midlands Engine, citing its intentions to “extend and deepen” the capabilities of regional mayors. Approximately £1.5 million in funding for Midlands Engine is provided by the government, supplemented by contributions from numerous local authorities. Nevertheless, certain councils have expressed skepticism regarding the body’s effectiveness, with a few having withheld financial contributions during its nearly decade-long existence. A government minister informed the BBC in 2016 that the organization needed to articulate its purpose more clearly. Despite the efforts of Midlands Engine, the Midlands region continues to exhibit lower productivity compared to the broader UK. A 2023 report from the think-tank Centre for Cities indicates that while the region comprises 15% of the nation’s population, it contributes only 13% of its economic output. The government’s consultation concerning the future of this funding is scheduled to conclude on 16 December.