THE MIDLANDS ENGINE, EAGER TO DRIVE UK GROWTH FROM THE CENTRE

In 2015, the then Business Secretary Sajid Javid MP, welcomed the proposal for the Midlands Engine, which followed the establishment of the Northern Powerhouse.

The Northern Powerhouse aimed to boost Northern England’s economy through investment in skills, innovation, transport and culture, and Central England didn’t want to get left behind.

At the time Sajid Javid said: “For too long the Midlands has been less than the sum of its parts. Unlike many other areas of the UK it has always lacked a sense of place. Northerners think it’s in the South. Southerners think it’s in the North. And Midlanders aren’t really sure either way.”

Between 1997 and 2010, manufacturing output in the Midlands fell from more than £15 billion to under £12 billion – the highest percentage fall of any UK region. And the region’s productivity was around 10 per cent lower than the national average.

The MP for Bromsgrove, who became the Chancellor of the Exchequer last year, before his surprise resignation last month, added: “As a proud Midlands MP, I’m not prepared to stand by and let that continue. Which is why the government fully supports the Midlands Engine.

“It’s not a cheap knock-off of the Northern Powerhouse. It’s not an empty piece of political rhetoric. It’s a real programme to deliver the jobs, growth and productivity that the people of this region deserve.”

And so, the Midlands Engine, which includes nine Local Enterprise Partnerships, was formed.

Chaired by Sir John Peace, who has vast experience in technology, financial services and retail, including as Chairman of Experian and upmarket British brand Burberry plc, the Midlands Engine now aims to speak to government on behalf of the region, making the case for greater investment to drive economic growth.

Midlands Engine priorities and achievements

In 2017, the Midlands Engine published its vision for growth, setting out five priorities for investment to drive economic growth.

These were to improve connectivity, including preparing a transport strategy and accelerating the delivery of HS2; grow trade, investment and create new jobs; promote the Midlands as a great place to live, learn, visit and work; invest in infrastructure, including the creation of a 5G testbed and developing more logistics sites, and finally to increase innovation and enterprise.

Last year the organisation revisited these priorities. The Midlands Engine says it is now the fastest-growing economy outside London and contributes more than £90 billion to the national economy through its international activities, and wants to grow this by a further £26 billion.

To support this ambition, in February last year it launched the Midlands Engine Internationalisation Strategy.

Two key cultural events will see the region showcased on the world stage. In 2022, the Commonwealth Games will be held in Birmingham, when a global viewing audience of three to four billion is expected, and next year Coventry will become the UK City of Culture.

Another major project launched last year by Midlands Connect (the transport arm of the Midlands Engine), was Midlands Engine Rail, an ambitious £3.5 billion plan comprised of seven projects across the region which could result in up to

60 locations benefiting from improved services, and 736 more passenger trains on the network every day.

Last year the region was chosen to host the fifth UK-China Regional Leaders Summit in Birmingham. While the outbreak of Coronavirus put paid to this and the prestigious summit had to be abandoned, ongoing relationships with China are set to continue after an agreement was signed to promote science and technology cooperation between the Midlands Engine and the Province of Zhejiang.

Other successes for the Midlands Engine include a £4.9 million government grant for Worcestershire’s 5G testbed, and significant investments from Amazon for two shipping and distribution centres in Coventry and Rugby, totalling £86 million.

Midlands Engine Investment Fund reaches £50 million milestone

Last year the Midlands Engine Investment Fund (MEIF), launched in 2017 by the government-owned British Business Bank, announced that it had secured £50 million investment into the region.

This has involved investing in 150 firms across the region and includes more than £19 million of private sector leverage.

Investments from the MEIF are made by one of six appointed fund managers working across the East, South-East and West Midlands, supported by Local Enterprise Partnerships. The £250 million fund offers debt and equity investment between £25,000 to £2 million.

One company which has benefited from investment is Oneskee, a Warwickshire snow sport apparel company. Last November Oneskee secured a six figure investment from MEIF. Co-founded in 2014 by brothers Josh and Scott Clifford,

R&D investment secured thanks to MEIF investment

LT Security has developed a surveillance system which uses radar, cameras and a mobile tower to track movements within a 400-metre radius. The firm secured £30,000 from the Midlands Engine Investment Fund to invest in research and development, and recruit two new staff.

Built at the company’s site in Malvern, the firm’s system “STL Leviathan” has a number of applications including border protection and surveillance in difficult and dangerous areas.

David Beech, Managing Director at LT Security, said: “The STL Leviathan uses radar-driven pan and tilt cameras to track multiple objects. If it detects something, an alert is sent via 3G, 4G or 5G to a central station, where security personnel can be dispatched to deal with the security threat. Our aim was to make

Oneskee is modernising the traditional all-in-one snowsuit design by developing an alternative for the younger generation of winter sports enthusiasts.

With Oneskee products now available online in 54 countries, the company has expanded its offering to include waterproof hoodies, puffer jackets and après-ski clothing.

Midven’s investment will allow it to develop new sales channels and build on increased demand from retail stores across Europe and America. protecting vulnerable areas safer by using technology instead of putting lives at risk.

The MEIF has also appointed a new fund manager, The FSE Group, and will make £40 million available to invest in the region’s small businesses.

The FSE Group will manage the £40 million debt fund, with the capability to invest between £100,000 and £1.5 million in businesses based in the West, East and South East Midlands.

“Securing a loan of £30,000 enabled us to research and install solar technology on our tower which means it is a practical solution in remote areas and is completely environmentally sustainable

– reducing carbon output by several hundreds of tonnes. It has also allowed us to employ young people and help them develop vital skills in electronics, engineering and business acumen. We have also been able to attend an exhibition that has generated a healthy sales pipeline of £1.7 million.”