Howard Flight: High streets, air travel, restaurants, the arts. How the virus is transforming our lifestyle.

6 Jul

It is becoming clear that the Covid-l9 crisis will lead to substantial changes in the British lifestyle.

First of all, a significant part of the workforce will be working from home on line. People have learnt from current experience that board and other meetings can be conducted quite satisfactorily on Zoom or Teams.  Employees will not need to travel, at great expense in discomfort with no seats, and can live away from London and the South East, where good houses are cheaper.

The knock on effects of Zoom and Teams are also going to reduce the demand for office space in London and other major cities.  Office space could be converted into residential use – so reducing the cost of residential property.  Much of the massive increase in office space over the last three years may end up to being converted into accommodation.

The Office for National Statistics (ONS)  has found some surprising results from its recent surveys.  The impact of lockdown on people’s lives has been revealed in official figures, showing that more than a quarter are considering changes to their relationships (divorce), job or home.

For the first time, the ONS has focused on aspects of life that are the cause of unhappiness.  Big life changes after recovery from the Coronavarius are being planned by 28 per cent of adults and, of these, 42 per cent want to make a change to their work; 38 per cent are looking to move on from relationships and 35 per cent are inclined to move home.  Family lawyers have already reported an increase in the number of divorce cases exacerbated by financial problems.

Researchers have also found that 40 per cent of adults feel that some parts of their lives have changed for the better. Of those who reported positive lifestyle changes, 56 per cent said they were able to spend more time with their family and close friends.  The ONS also found that nearly half of those aged between 60 and 69 had experienced positive lifestyle changes compared with only 24 per cent of respondents aged over 70. Exactly half said they were enjoying a slower pace of live.

It remains to be seen how many of these intentions will be carried through, albeit that a lot of people will need to change jobs as there  their previous jobs will no longer be available.

There are four related territories which are exposed to massive change for survival: the high street, travel, hospitality and culture.

The high street is still threatened by online shopping in an unfair tax regime.  The Government has permitted the online shopping industry to enjoy substantial tax advantages, undercutting the high street.  It pays no business rates and is maybe registered abroad, so saving on VAT and corporation tax.  What is needed overall is a level tax  playing field.

Travel is probably the biggest area effected by Covid-19.  The total value of cancelled flights amounts to £8 billion for the last four months.  Liability for this will be fought over for a long time to come, where there are now two key  legal principals – in the UK “Acts of God” and, imported from Europe, “Force majeure”.  The industry cannot afford to refund the £8 billion total, and it is governments that have insisted on the closure of air travel.

Restaurants, pubs and hotels have had mixed and an often interlinked experience – overall, a negative one caused by Government lockdown requirements.  Some opening up is now occurring, and local authorities are encouraging and supporting the provision out outside restaurant facilities There is an economic need for restaurants..

The territory which the Government has now announced a £1.5 billion package for us the performing arts.  The individual performers have had all their bookings cancelled, through to Christmas with no compensation and no future bookings.  It should be remembered that the arts contributes more to Britain’s international earnings, in aggregate, than does the City of London.

The Government seems to be waking up to the importance of Britain’s musical industry.  One of our friends who is an internationally recognised opera singer is trying to set up a major outdoor performance in Hyde Park, similar to the Pavarotti Concert over ten years ago.  This, however, will require the Government to provide the insurance cover against the risk of Covid-l9 infection.  There are three historic precedents where the Government had to put up such cover – and, ironically, made a good profit from so doing.

Alan Mak: A new tech scrappage scheme will boost productivity

2 Jul

Alan Mak is MP for Havant and Founder of the APPG on the Fourth Industrial Revolution.

In the aftermath of the 2008 financial crash, governments around the world including those of Japan, Germany and the US responded to calls to help struggling car manufacturers by introducing popular scrappage schemes. After new car registrations declined by 30 per cent in the UK in the first quarter of 2009, the schemes saw demand bounce back, while dirty, polluting old cars were consigned to the scrapheap.

Now there is media speculation about a new car scrappage scheme – drivers will be given up to £6,000 to swap their petrol or diesel cars for electric ones – designed to provide a shot in the arm for the UK electric car manufacturing sector in the wake of Coronavirus.

Yet focus should also be given to how the Government could launch a similar scheme to help factories and businesses investing in the latest technology. We must use this period of recovery to press the fast-forward button on helping our businesses to improve their performance by adopting new technologies quickly, accelerating processes that would have otherwise taken many years into a much shorter period.

Just as the Government ushered a brand-new fleet of cars onto our roads a decade ago, a new scrappage scheme should be introduced for old and obsolete IT, tech and machinery. By particularly focusing on the adoption of robotics, it would achieve the dual ambitions of boosting productivity, and giving our businesses the cutting edge in international markets post-Brexit.

More British firms need to follow in the footsteps of innovators such as Ocado, who have created one of the most advanced automated warehouses in the world. Ocado’s newest fulfilment centre uses automation to pick 200 items per hour of labour time using its hive system – far outstripping traditional supermarket competitors.

As the Fourth Industrial Revolution accelerates, for British manufacturers and suppliers to keep up with international competitors, they must upgrade the machinery and software that is powering the workplace.

Yet automation and the adoption of new technology is an area where the UK needs to improve if we are to boost the nation’s productivity and economic growth after Coronavirus. Research published by the International Federation of Robotics shows that the UK has a robot density of 71 units per 10,000 employees – below the world average of 74 units – ranking us 22nd globally. Europe’s most automated country, Germany, has more than 300 units per 10,000 employees.

Whilst the critics will always fear job losses from automation, as we recover from Coronavirus, we can create high-wage employment through robotics. I’ve visited factories, such as Harwin’s manufacturing site near my own constituency of Havant, that have successful re-trained factory workers as high-skilled robot operators. We must rebut trade union leaders and others holding back change and hindering the adoption of new technology.

Just as a car scrappage scheme was brought in to safeguard the car manufacturing industry and protect demand in its vast supply chain, a tech scrappage scheme also has the potential to boost the fast-growing UK tech and robotics sector. Businesses that could benefit include Tharsus, the Blyth-based robotics company that supplies Ocado’s automated warehouse, which is now one of Europe’s fastest growing technology firms.

While individual businesses know the products that are right for them, a tech scrappage scheme can and should promote world class British engineering and high-end manufacturing by creating more demand.

Every UK business could benefit from upgrading technology and IT, but key to the success of the car scrappage scheme was incentivising people into the new car market by making them more affordable. To be eligible, the car had to be at least ten years old and many of those taking part in the scheme would never before have bought a new car. The same must be implemented for a tech scrappage scheme. The Government needs to target the least productive SMEs that have never before invested substantially into the latest robotics, software, automation or information technology.

Research published last year based on a survey of 2000 business owners showed that 46 per cent of small business owners believe technology is more important to their business than people. Just as we incentivised car owners into the market, a new scrappage scheme will give SMEs the confidence to make the tech upgrades their businesses need.

There would be environmental gains too. Just as polluting cars were taken off the road through scrappage, businesses would have the opportunity to replace diesel-fuelled machinery with cleaner and more energy efficient alternatives.

As our country bounces back from Coronavirus, and the focus shifts from health emergency to economic recovery, the Government must continue to focus on not only supporting businesses in the short term but arming our businesses to be ready for the long term impact of the Fourth Industrial Revolution.

Our economic recovery must be both green and digital – a scrappage scheme for IT, tech and machinery achieves both goals.

This is the third in a three-part series on how to boost our economy after Coronavirus.

Alan Mak: Reform capital allowances and R&D tax credits to fire up investment and create jobs

1 Jul

Alan Mak is MP for Havant and Founder of the APPG on the Fourth Industrial Revolution.

Improving Britain’s productivity is key to both our economic recovery after Coronavirus and enhancing our global competitiveness post-Brexit. The best lever for firing up Britain’s productivity is incentivising more investment in the latest IT and software, new plant and advanced machinery – all proven catalysts of growth and efficiency. Failure to direct billions of pounds into these fundamental building blocks of our economy will hold back our recovery.

The State cannot be expected to do all the heavy lifting, especially given the Government’s substantial spending commitments to help the country through the lockdown and beyond. Instead, it must be businesses that take the lead, especially SMEs who have traditionally made up the “long tail” of unproductive companies.

Rather than a safety-first approach of hoarding cash, postponing investment and hunkering down, businesses must be incentivised to invest more in the coming months. This must be an economic recovery powered by bold investment decisions that create jobs, upgrade technology and boost productivity.

The dampening effect on capital expenditure (capex) and investment caused by Coronavirus is already large and destructive. One investment bank estimates that £23 billion has been slashed from this year’s capex budgets already, whilst the Bank of England predicts a 26 per cent drop in business investment for 2020. In 2009, as the financial crisis erupted, the fall was 16 per cent by comparison. Some of the country’s biggest employers such as BP and HSBC have already started cutting investment.

In practice this means IT systems and software – now at the heart of every business – being used for longer. Machines normally replaced every decade will have their life extended. Trucks and vans will be allowed to age. Outdated buildings that offer no room for new employees will be kept on. Research and development (R&D) could stall.

Reductions in investment not only have negative consequences for our country’s GDP, jobs and productivity, it also damages our capacity for R&D and our reputation as a nation that innovates for the future – key to our leadership of the Fourth Industrial Revolution.

Reforming and adapting two existing incentive schemes – the Annual Investment Allowance and the R&D Tax Credit – would have a major impact in reversing this decline in business investment and productivity.

Introduce a new Annual Investment Allowance ceiling for green or digital investments

Capital allowances enable a business to deduct the cost of qualifying items from their profits, lowering their corporation tax bill. This incentivises investment in key productive goods from machines to laptops.

The Annual Investment Allowance (AIA) is the annual cap on such deductions and its level has varied dramatically in recent years from £25,000 in 2012 to £500,000 in 2015. Until December 2018, the AIA was £200,000 but it was raised to its current £1M level from January 2019. The £1 million level is due to expire this December.

To encourage a green recovery and investments that focus on digitisation, the AIA could be allowed to fall back to the previous £200,000 ceiling, except for certain types of capital expenditure that achieve environmental or digital goals which would still benefit from the £1 million special ceiling. Replacing a diesel-powered machine on the factory floor with one powered by electricity, or digitising a production line by adding new software powered by artificial intelligence (AI), could be examples of investment that would be rewarded by the new special AIA ceiling.

Alongside the introduction of a special £1 million ceiling, the scope of what can be claimed through capital allowances should also be expanded to take account of the growing digital dimensions of every business. For example, digital tools purchased on a subscription basis (such as monthly website hosting costs) should benefit from relief not just one-off investments in physical goods (such as buying a new machine).

Increase R&D tax relief rates for SMEs and widen the scope of the reliefs

R&D tax reliefs support companies that work on innovative projects in science and technology, and enables the cost of qualifying projects to be reclaimed from HMRC. They’re especially effective for digital start-ups, who get a tax break and much needed cashflow back for critical work.

From April this year the relief rate is 13 per cent, but the lion’s share of R&D tax relief is claimed by large, research-intensive businesses. SMEs can currently claim up to 14.5 per cent in certain circumstances, but incremental increases such as this do not have a dramatic effect on investment appetite.

Often the most cutting-edge innovation, especially in the digital sphere, is carried out by small teams and growing start-ups – not just multinationals. To encourage more micro businesses and SMEs to pursue more R&D, new and much higher rates of relief should be introduced. For example, a rate of 25 per cent for SMEs with fewer than 150 employees, and 35 per cent for SMEs with fewer than 50 employees.

What qualifies for relief must also be broadened to include more of the digital tools that software developers use, including software testing tools and data analytics software. In addition, cloud storage fees, user experience development work and the cost of buying data sets needed to train algorithms for AI-driven start-ups should also be tax deductible.

Britain is currently 19th out of the 37 industrialised nations in the OECD when it comes to R&D investment, spending 1.7 per cent of GDP against the OECD average of 2.4 per cent. To match world leaders including Germany and Japan, who invest over three per cent, we must urgently update and expand our R&D tax relief regime.

This is the second in a three-part series on how to boost our economy after Coronavirus.

James Roberts: Big state spender Roosevelt shouldn’t be Gove’s new role model

1 Jul

James Roberts is Political Director of the Taxpayers’ Alliance.

Our de facto prime minister, Michael Gove, has been a busy man. On Tuesday, he was in the Commons explaining Mark Sedwill’s sudden departure. At the weekend, he delivered a much-vaunted address to the prestigious Ditchley Foundation, joining a long line of luminaries: Mark Carney, David Milliband, John Major, Chris Patten, to name but a few.

Sparing the blushes of the distinguished Ditchley crowd, Gove didn’t mention Brexit much. But what he did deliver was a rare tour de force about the challenges facing Western governments, delivered with daring incisiveness by the Government’s ‘Hand of the King’. If the ever-authoritative media talking heads (and rapidly-departing civil service barons) want to know what ‘hard rain’ that nasty Dominic Cummings has in store for them, Gove’s lecture was a good place to start.

He didn’t pull his punches. For the ‘Forgotten Man’, faith in the system has been broken, “compounded by cultural condescension and insulation from accountability”, with the policy-making elites in political parties and the civil servants in the dock.

Reasonable demands, or taxpayers’ money to be well spent on accessible public services that actually work have been ignored. The top tiers of mandarin management are stuffed with like-minded PPE-ists, dripping in self-reinforcing groupthink, preaching every form of diversity going – except diversity of thought.

Gove described with brutal accuracy the tendency to coalesce around a cosy Westminster consensus, perpetuated by media commentary and pressure group plaudits, with almost non-existent evaluation of real world delivery. But the government eco-system is dying – its credibility eroded away by constant deforestation to feed an insatiable 24 hour media cycle, the whims of easy-choices-only politicians and the childish tantrums of the Twitterati. The spirit of intellectual challenge has been driven out of the forest, with generic generalists climbing high and genuine innovators buried in the undergrowth.

He’s bang on. As Matt Ridley identified back in 2013, policy-making has long been broken: sometimes little more than a string of special interest spending demands; elaborated on by so-called experts; written into submissions by pedantic pen-pushers; approved by malleable ministers; and made into law by preoccupied politicians.

‘Doing something’ is the name of the game. If social media demands it, laws can be changed. If the media suggests it, money can be found. The Forgotten Man – that is, the taxpayers who pay for all this – be damned. Their preferences are secondary or even, as Gove suggests, absent entirely. A quick reference to ‘taxpayers’ money’ seems often enough to settle the consciences of Tory ministers, as they implement evermore expensive government intervention, because a hashtag told them to.

The TaxPayers’ Alliance knows calling this out doesn’t win you many friends: you can count on one hand the number of policy-makers willing to go against the grain. At DEFRA, lest we forget, Michael Gove was quick to join the chorus of environmentalist big spenders, navigating Theresa May towards a non-negotiable £1 trillion net zero commitment (which by our reckoning no government department has any idea of how to achieve). But then, there’s no zealot like a convert.

But a form of zealotry is exactly what government reform needs. The so-called ‘Rolls Royce’ civil service has broken down by the roadside. On that front, Gove wasn’t short on bold solutions. As our landmark polling last year with ConservativeHome’s columnist, James Frayne, showed, more than six in 10 working class taxpayers agree with the suggestion that we should move more central government offices and jobs outside of London.

Almost three quarters of them believe that all civil service jobs should be open to applicants without a degree, perhaps hoping to break the hold of the hapless humanities graduates. A hard-nosed look at value for money is vital, too.

Gove namechecked numerous programmes, including his old chum David Cameron’s £1 billion National Citizenship Service, which could benefit from a proper quantitative analysis of success and failure. There should be nothing noteworthy about a politician taking aim at programmes, like the £920 million Troubled Families scheme or (Gove’s own) Pupil Premium, and asking if these really delivered for taxpayers. But in the punch-and-judy pantomime of the current political debate, this feels revolutionary.

The same can be said of some of his other policy proposals. In a speech so wide ranging it would usually have a Prime Minister worried, Gove called for  planning reform to fast track beautiful development, better use of data in the NHS, transparency on court and school results, reviews for failed anti-radicalisation programmes, interrogating defence procurement contracts and accountability on the impact of aid spending. Many of these things should be music to taxpayers’ ears.

But the implications of all this are far from clear. As the punters know, policy outcomes matter more than policy processes. Reviews often come to nothing. Promises aren’t worth the paper they’re written on. The devil’s in the detail. What does Gove actually want to achieve?

Does turning to more data in the NHS mean only allowing for government-made track and trace apps, which inevitably fail? Does it follow that reviewing a failed social programme results in it actually being abolished, and taxpayers getting their money back? Does accountability for aid spending mean cutting back the £15.2 billion cashpoint in the sky, or simply swapping money between dodgy dictators and wasteful NGOs?

he voters we polled wanted foreign aid reduced and reallocated to other priority areas such as the police, the NHS and schools. Very few people care how the sausage is made – they just want aid cut. But that’s an uncomfortable view in SW1, and incidentally not one that Michael Gove shares. It’s the same with the majority (68 per cent of C2DE voters) who backed abolishing the BBC licence fee. When he becomes inconvenient, or wants things that really upset the Westminster village applecart, the Forgotten Man is once again forgotten. Politicians just come up with better ways of ignoring him – the endless reviews and the broken promises.

In that sense, Gove’s speech could easily have been given by a much more fitting figure for the Ditchley Foundation: Tony Blair. Like Gove, he reached for the model of America’s big spending New Deal, under Franklin Delano Roosevelt. New Labour offered innovation, clever solutions and new public service delivery models, with a pledge and a commission for every occasion. Gove and his Cameronite contemporaries looked on in awe, while most Conservative voters were horrified at the economic paternalism, metropolitan condescension and fiscal vandalism of the Blair years.

Many still believed that reams of government data and endless initiatives can never outgun the free and rational choices of millions of individuals. Their ears still rung with the mocking rebuke of Ronald Reagan: “I’m from the government and I’m here to help.” Endless cash flow means that civil servants, not taxpayers, still made the rules. The TaxPayers’ Alliance itself was founded to take a stand.

Blair paid the price for ignoring his own voters, and taxpayers got sick of the Westminster consensus he created – ‘expert’ policy tsars, expensive PFI, and constant right-on crusades – arguably leading up to the EU referendim result in 2016. For a man so intimately involved in that campaign, Michael Gove may sadly be in danger of starting off down the same path. Replacing Oxford-educated experts with world-beating data whizz kids, or swapping a programme here with a review over there, won’t change the Blairite policy-making consensus – unless there is fundamental change of political intention at the top.

Britain’s forgotten taxpayers need Michael Gove’s intentions to be as bold as his analysis.

Alan Mak: Britain should champion a new Five Eyes critical minerals reserve system

30 Jun

Alan Mak is MP for Havant and Founder of the APPG on the Fourth Industrial Revolution.

The on-going trade dispute between the US and China has put the spotlight on so-called “critical minerals”. We in Britain cannot afford to be passive observers. Instead, we should take an active interest in this key strategic and economic issue, and play a leading role in safeguarding access to critical minerals, both for ourselves and our Five Eyes allies. Ensuring our scientists, manufacturers and technology businesses have a secure and reliable supply of critical minerals is vital for Britain’s leadership of the Fourth Industrial Revolution.

Critical minerals consist of the 17 Rare Earth Elements (REE) recognised by the International Union of Pure and Applied Chemistry, with names such as promethium and scandium, plus other economically valuable but relatively rare minerals such as lithium and cobalt (used in batteries), tungsten (used in defence products including missiles), bauxite (the source of aluminium) and graphite (key to battery production).

The REEs have unique magnetic, heat-resistant, and phosphorescent properties that no other elements have, which means they are often non-substitutable. Whilst used only in small quantities, they are key components in a wide range of consumer products from mobile phones, laptops and TVs, and have widespread defence applications in jet engines, satellites, lasers and missiles.

Although they are more abundant than their name implies, REEs and critical minerals are difficult and costly to mine and process. Converting critical minerals embedded in rocks from under the Earth’s crust to separated elements is a complex and costly process which often involves the use of highly concentrated acids and radiation.

China hosts most of the world’s processing capacity and supplied 80 percentemploy of the REEs imported by the US from 2014 to 2017. On average, China has accounted for more than 90 pe cent of the global production and supply of rare earths during the past decade, according to the US Geological Survey.

By contrast, the US has only one rare earth mining facility, and currently ships its mined tonnage to China for processing. Lynas Corporation, based in Australia, is the world’s only significant rare earths producer outside China. Other critical minerals are similarly concentrated in a small number of producer nations. For example, the Democratic Republic of the Congo was responsible for around 90 per cent of the world’s cobalt production in 2018, whilst Guinea dominates bauxite, with around 35 per cent of the world’s reserves.

As globalisation and industrialisation accelerate around the world, critical minerals have become a highly sought-after resource for the high-technology, low-carbon and defence industries. They will play a vital role in Britain’s future plans for economic growth, innovation and green industrialisation, especially as we renew and expand our manufacturing base in the wake of Coronavirus.

Given the national strategic and economic importance of critical minerals, the UK needs to act now and lead efforts to protect our national supply for the future. Neither we nor our Five Eyes allies can remain reliant on one producer for anything, including critical minerals. Here are four steps we should take:

Establish a New Five Eyes critical minerals reserve stockpile

The Five Eyes intelligence sharing partnership between Australia, Canada, New Zealand, the USA and the UK has been in existence since 1941 and provides the perfect foundation on which we should develop a new critical minerals reserve that would end our collective vulnerability of supply.

The reserve would consist of inter-connected physical national stockpiles of critical minerals, and then extend to become a processing chain that all partners could draw on. The US already maintains stockpiles, and creating others including in Britain would lead to new jobs. The UK is never going to become resource independent, but through international co-operation we can diversify supply and refine, through innovation, the processing of these elements.

Use our international aid budget to secure critical minerals supplies

As the Foreign Office and DFID merge, the UK can align its development goals alongside diplomatic priorities. We should deploy our international aid to unleash the untapped supply of critical minerals in developing countries, effectively funding the start-up of new critical mineral mines and processing plants. This would enhance our supply of these elements and create jobs, transforming communities around the globe through trade, not just aid. China has already implemented a similar strategy in Africa, for example providing Guinea with a $20 billion loan to develop the country’s mining sector.

Create a new National Critical Minerals Council

The Government should establish a new National Council composed of metallurgists, scientists and foreign policy experts to monitor global trends in critical minerals, and advise the Government on rare earths and its strategic stockpile. Given the national security and defence procurement implications, the National Council’s establishment would help to keep this issue at the forefront of future policymaking.

Become the world’s greenest stockpiler by incentivising private sector involvement in critical minerals processing

The Government should provide funding for greater research into how we can improve the processing chain of critical minerals with a focus on how we can tighten environmental controls in this sector internationally.

The UK should establish itself as the world’s “greenest stockpiler” of critical minerals by offering incentives that encourage private sector investment in recycling processes and reward companies that contribute to the UK stockpile. We need more facilities like the University of Birmingham’s Recycling Plant at Tyseley Energy Park, which is pioneering new techniques that are transforming the recycling of critical minerals such as neodymium, which is commonly found in hard disk drives.

The Coronavirus pandemic has taught us the importance of supply chain security, whether for PPE or critical minerals. With our reputation for scientific excellence, global alliances and diplomatic networks, we can help ourselves and our allies strengthen our access to the key minerals that will power our economic growth and innovation potential for decades to come.

This is the first in a three-part series on how to boost our economy after Coronavirus.

Andy Street: Our blueprint setting out the economic ambitions of the West Midlands

30 Jun

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

Last week saw the launch of a blueprint setting out the post-Coronavirus economic ambitions of the West Midlands. As a manufacturing heartland, where draftsmen drew up plans for everything from steam engines to Spitfires, blueprints are in our blood. They illuminate our history. This intentionally ambitious £3.2 billion business case draws a clear trajectory to our region’s future.

As Mayor of the West Midlands, it’s my job to attract as much investment as possible. Rishi Sunak’s bold and decisive actions – notably through the furlough scheme – have provided unprecedented economic support for jobs during lockdown. Now, demands on the public purse are high. All investment must be fully justified, diligently used and – crucially – deliver real results. Every penny counts.

Our region was the UK’s fastest growing outside the capital until Covid-19 struck, and as a hotbed of export, manufacturing, construction and professional services, we play a key role in the UK’s economic success. This new blueprint lays out a powerful business case for how continued investment can spark rapid and sustained recovery, not only for us here but for UK PLC.

Our ambition is deliberate because the stakes are high. Research suggests we could be hit harder than most by the lockdown. When coronavirus struck, the West Midlands was in a strong economic position, with record employment figures and productivity growth well ahead of the national rate. However, our economic mix – dependence on manufacturing and business tourism, as well as a significant contribution from universities – leaves us vulnerable.

By following the blueprint we have drawn up, the Government can demonstrate its commitment to ‘levelling-up’ by backing the people of the West Midlands to deliver.

We need to do everything we can to get back on our feet quickly and return to the levels of success we were enjoying before the outbreak hit. That means driving a rapid economic recovery, safeguarding more than 135,000 jobs while building thousands of new homes. It also means learning the lessons of the financial crash of 2008/09, and listening to business.

Investment is crucial. However, while we need significant investment from the Government – £3.2 billion over the next three years – this is broadly in line with the £2.7 billion investment we have secured since 2017, which supported strong economic success here.

Our business plan is to build on our success and on the investment we have already attracted from Government, while leveraging much more private and public sector investment locally, including from our universities.

The blueprint sets out a business case for investments, while outlining the economic benefits they would deliver. For example, it directly supports our automotive sector by harnessing clean technology and electrification. A major investment package, including £250 million towards a Gigafactory producing state-of-the-art batteries, will unlock 51,700 green jobs.

The building of HS2, next year’s Coventry City of Culture festivities and the Birmingham 2022 Commonwealth Games present opportunities to create jobs for local people. By accelerating major infrastructure investment and supporting the recovery of the tourism and cultural sector we can unlock 33,000 jobs.

Then there is the West Midlands’ growing reputation as a hotbed for health research. By investing in healthcare innovation we can protect 3,200 jobs, while improving the health of our population.

Improving transport, housing and digital infrastructure will play a key part in a rapid recovery, while laying the foundations for future economic strength. We can build better transport and digital links to drive productivity and create thousands of jobs in construction. Schemes include extending rail, metro and bus routes, with cash for enhanced digital connectivity and to accelerate fibre connectivity in deprived areas. Reopening long-closed railway stations will better connect people to employment opportunities, attract investment into once-isolated areas and improve productivity.

The West Midlands has pioneered the regeneration of brownfield sites to tackle the housing crisis, while protecting the environment. We even have our own regional definition of ‘affordable housing’ applied at planning level by the West Midlands Combined Authority. We want to build 35,000 new homes – 15,000 of which will be affordable – with a focus on housing key workers. Plans include using a £200m investment package to regenerate derelict eyesores and £24 million for a new National Brownfield Institute in Wolverhampton, which will be a centre of excellence for land reclamation.

Investment to equip people with the skills needed for the future aims to help get them back into work. This includes helping 38,400 young people obtain apprenticeships and work experience, retraining 20,000 workers for in-demand sectors such as health and social care, logistics and business services, and upskilling 24,000 for jobs for the future.

Finally, we want to back the region’s businesses with support schemes – including helping them navigate their way through the post-lockdown world – creating or safeguarding 43,900 jobs.

This ambitious business case is based on our region’s experiences not only of recovering from the last downturn, but on the successes of the last three years. The blueprint has been developed as a team effort between the region’s local enterprise partnerships, universities, business groups and local authorities.  Crucially, some of our biggest employers have also shared their insights about how the region can play its part in securing a strong national recovery, putting central investment to good use.

For the UK to fully recover, all of its regions must recover too – creating a stronger country with a more robust, balanced economy.