Andy Street: I haven’t raised a mayoral tax during my term, and commit to not doing so if I’m re-elected

23 Feb

Andy Street is Mayor of the West Midlands, and is a former Managing Director of John Lewis.

As we await next week’s Budget from the Chancellor, here in the West Midlands we’ve just considered our own local financial plans for the next year. Approved by the West Midlands Combined Authority (WMCA), it is a budget of more than £900 million – funding infrastructure, regeneration and job training schemes that can support our post-Covid-19 recovery.

After such a difficult twelve months, and with significant challenges ahead, this year’s financial plan for the region stands out in terms of its ambition and breadth, delivering on my core commitments of new jobs, better transport and more homes.

But our plans aren’t just about big spending to kick-start the economy, they’re about public funds working hand-in-hand with private sector investment. This is about delivering investment into projects that are based on solid business cases.

In this column, I want to tell you about how we intend to spend that investment and also explain how, as Mayor, I believe it’s vital that I set a financial example to ask only for money when it is needed – and ensure it is used properly.

So what’s in the region’s budget? For a start, there is £142 million towards skills and training – to support people as they adapt to the new world we face and get high-quality, stable jobs in the industries of the future.

Despite the pandemic, we have already made a good start on the 20-year transport plan that I unveiled 12 months ago, and this budget includes a further £363 million towards delivering our ever-expanding Metro lines, reopened railway stations and better, greener buses.

Then there is ‘brownfield first’, our ground-breaking policy of reclaiming derelict industrial sites for development. Our budget includes £116 million towards maintaining our progress in making ‘brownfield first’ a reality, not a slogan – regenerating communities and easing the pressure on our Green Belt.

Plus, of course, millions have been allocated to other big regional investments we have secured, for a whole raft of projects that are generating jobs and sustaining livelihoods now – projects such as the Commonwealth Games, Coventry City of Culture, the rollout of 5G technology and many more.

All told, since becoming Mayor four years ago, we have brought in £3 billion of new Government funding, a figure rising every day, and topped up with millions more given to our councils, and supported by us as a regional body.

When the pandemic struck, the West Midlands economy was motoring, with record employment, record housebuilding and the strongest growth anywhere outside of London. Government support played a huge part in that success, but I believe that our ability as a region to put together compelling business cases has been crucial to winning that investment. Now, as we plot our recovery post-pandemic, this approach will be more important than ever.

It’s not surprising that I do things differently as Mayor, when you consider that I came to the role from a business background, rather than via the world of politics. My business experiences have certainly informed how I tackle the role, in terms of setting strategy, building a team, ensuring delivery and understanding that the UK’s regions are in a competitive race.

However, in financial terms, my 30 years at John Lewis have meant I build a budget based on business deals, not political decisions. Every penny we have brought into the region has been won through coherent business arguments, project by project, and working hard to make the case with Government.

Throughout my time as Mayor, I have worked with Ministers to secure the funding we need from across Government. I haven’t done this through megaphone diplomacy, or seeking out TV cameras to make demands, but through approaching each project as a business deal – and making sure we land as many as possible. Naturally, this approach also knits well with the business world, leading to big private sector investments which drive our economy forward.

There could have been another way. When it was established in 2017, the office of the Mayor was given considerable powers – powers I have often argued should be extended, for example to decentralise decision-making from London, or to give regions more ability to direct how money is spent locally.

However, there is one significant area where I have not used the powers on offer to me. During my time in office, I have not used the ability available to the Mayor to introduce a precept – an additional Mayoral tax.

In the last four years I have never used this power to tax the people of the West Midlands and, where we have borrowed, it has been to push forward projects – and never at a rate which means citizens end up with a precept.

Our model of retaining local business rates has also helped balance the books, by ensuring we benefit from the fruits of our strong economic growth, paying in part for the work of the WMCA.

I could have got our region into heavy debt to make my transport plan happen, or raised extra taxes to press ahead with Brownfield First. As a person with a business background, and someone who believes good housekeeping, this hasn’t been my way. Areas served by Labour mayors levy a precept. This has not happened here.

As households across the region face the hardships caused by Coronavirus, I’m proud to say that this year we have once again balanced our books and delivered a budget that hasn’t cost local people a penny in extra tax from their Mayor.

It is an approach I want to continue. After four years of no extra tax due to the Mayor’s office, I am planning to do the same again if I am fortunate enough to continue in this job – that’s zero tax again for another three years. I do not intend to introduce a precept.

I consider it a great privilege to be the Mayor of the region where I grew up, the place that made me what I am. I passionately believe that the office of Mayor should exist to the benefit of local people, not to their cost. By continuing to approach this job in a business-like way, I am confident I can continue to bring real money into their region, without taking it out of their pockets.

Andy Street: The West Midlands is rising to the challenge of building a better future

11 Aug

Andy Street is Mayor of the West Midlands, and is a former Managing Director of John Lewis.

A few weeks ago, in the West Midlands, the Prime Minister sent out a clarion call to construction – with his plan to get Britain building. Against the backdrop of Dudley College’s Advance II campus, the PM announced the fast-tracking of £5 billion of major projects that would help the nation build its way back to health.

The West Midlands was the perfect place to set out this plan – because we are already rising to the challenge of building a better future, pioneering new technologies to create vital jobs and build more homes.

Weeks before, our region had set out its own long-term blueprint for recovery. It requires significant investment from the Government – £3.2 billion over the next three years – covering everything from construction to the automotive sector and investing in skills.

Broadly in line with the £2.7 billion investment we have secured since 2017, our ambitious blueprint reflects our economic success of recent years. For the UK to fully recover, all of its regions must recover too – creating a stronger country with a more robust, balanced economy. Our plan is an example of confident regional leadership setting out what it needs to bounce back.

Last week we saw the Government endorse that ambition. The vital funding we need began to flow, with £66 million from the Government’s Get Britain Building fund, for a package of eight “shovel ready” schemes here.

Crucially, all eight projects will make an immediate difference by helping to create and secure jobs for local people. This money is also an investment in our future, to cement the West Midlands’ place as a global leader in green and clean technology, life sciences, transport of the future, and construction.

The schemes form part of our region’s blueprint for recovery, drawn up by the West Midlands Combined Authority and our constituent members. With this extra money, we can get started on them straight away, creating thousands of jobs and generating further investment.

They also encapsulate what I have been trying to achieve as Mayor of the West Midlands.

First and foremost, before a spade hits the ground, they show how the people of the West Midlands have built a formidable team.

By working together as a region, our member boroughs of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton always achieve far better results. Our three Local Enterprise Partnerships authored the latest bids for Government money, backed to the hilt by our seven councils. Where in the past competing local interests may have undermined each other, these latest schemes present a shared vision that will benefit all.

This is key to my role as mayor, bringing different councils, local enterprise partnerships, business groups and the teams behind individual schemes together to fashion a compelling, united pitch.

Second, these projects focus on the creation of high-quality jobs, which are so vital as we plot our economic recovery post Coronavirus.

We know a dynamic life sciences sector can play a key part in the economic future of the West Midlands. An investment of £10 million will provide innovation spaces and research laboratories at the Birmingham Health Innovation Campus. Our region’s role as a test bed for the new 5G network provides another opportunity, and investment will help small and medium sized business to develop ground-breaking 5G apps.

There is also investment to ensure the region reaps long-term job benefits from two major events on the horizon. Coventry City of Culture will get £6 million to support various initiatives to make the most of the opportunities presented by next year’s celebrations – including the building of a new heritage park. And we are ensuring the legacy of the Birmingham Commonwealth Games in 2022 extends across the region, with £3.9 million towards constructing improved facilities at the Ricoh Arena, again in Coventry.

Thirdly, these quick-turnaround schemes will significantly push forward my long-term transport plan for the region. Following on from the rebuilding of Coventry and Wolverhampton stations, £15 million will help redevelop University Station in Edgbaston, which is one of the busiest stations in the West Midlands and will be a key gateway for visitors for the Commonwealth Games.

In the Black Country, a new Very Light Rail Innovation Centre will develop modes of transport which are both green, cheaper and quicker to deliver than traditional tram or rail. More investment will see this technology transform public transport in Coventry.

Finally, and perhaps most tangibly, last week’s announcement recognises the West Midland’s achievements in house building and provides the investment needed to lay the foundations for a new era in home construction here.

Before Coronavirus hit, our region was building record numbers of homes, achieving results considerably above the national average. At the root of that success was our “brownfield first” policy.

I make no bones about my belief in the need to always target brownfield sites when it comes to new developments, regenerating derelict areas to ease the pressure on our Green Belt and open spaces. We have shown that this is a viable policy. It removes contaminated eyesores, rejuvenates communities and protects the environment.

The exciting investment in the National Brownfield Institute at Wolverhampton will cement our position as a national leader in remediation and construction technology, ensuring we have the local skilled workforce to build the homes we need.

With efforts now being made to speed up the planning process, the West Midlands stands ready to develop the technology and new skills needed to get Britain building.

As we continue to tackle the Coronavirus pandemic, we face significant challenges on the road to recovery, not least the threat of a fluctuating “R rate” and further lockdowns. Yet construction – an industry used to stringent safety measures and better suited to social distancing – is a sector that can kickstart our economy.

By backing these eight shovel-ready schemes, the Government has begun to deliver the investment we need.