I recently spoke at the Lunar Society, attempting to discuss this topic, an “expert view”.
In looking at addressing these questions I thought about a more provocation approach, but first breaking down the topics in the question:
- Has Birmingham experienced an economic Miracle?
- Do people benefit?
- How can they benefit?
Watching the recent news, it might be difficult to perceive that Birmingham has had an economic boom but walking round the city centre it’s easy to see the changes. So, what data can we explore to look at economic growth?
I toyed with having a broader historical approach but settled on utilising Birmingham City Council’s Observatory data tools, which are an excellent source of information on the city.
Looking at Gross Value Added (GVA) for the City compared with the West Midlands and England we can see that the city has performed well above those averages and between 2013 and 2019 was on a growth trajectory. At the time this was bucking the national trends post the 2008 crash.
There was a significant dip in 2020 due to the pandemic, but the growth has returned to the city (to some extent accelerated growth, suggesting the subsequent growth post covid was also pent-up demand released later in the cycle. Birmingham i on a good path to growth recovery (in GVA).
The Observatory also presents the very local level GVA (experimental so comes with a reliable health warning, but is useful as a discussion tool.
GVA for all industries – Birmingham Wards
Looking at this graph, after the mean for Birmingham and the WMCA the first ward is Ladywood, which for those who know Birmingham was a surprise in the audience. Why? Because Ladywood as a residential area scores poorly across a range of social indicators it’s an inner city, high churn area.
But when we look at the Ladywood Ward, we see the core of the title question written large.
This area includes some of the most deprived areas in the city next to the city centre and heart of the business districts Colmore Row and Brindley Place and the retail and entertainment centre. The area is home to Birmingham New Street Station, Weslyan HQ, AECOM, Jacobs, KPMG, Turner and Townsend, HSBC HQ, BBC, Birmingham Library, ICC and Utilita Arena.
This demonstrates how in city centres, high-value businesses employing people who commute into the city often sit next to the poorest most excluded communities. In these cases, distance is not physical, but often based on socio-economic barriers including personal factors, such as motivation, perceptions, and social networks. The people at one of the wards don’t see the opportunities at the other end of the ward as being for them, or they simply don’t know they exist. There is often a growing distance between the jobs and the people in the same districts, and this is a global phenomenon the divide is widening as local jobs mismatch withthe skills and knowledge of inner-city residents.
What do we know about opportunity in Birmingham?
- Young and Diverse Population: Birmingham’s demographic diversity is a significant asset. Policies that leverage this diversity can drive inclusive growth.
- Impact of HS2 and Devolution: Infrastructure projects like HS2 and devolution initiatives are seen as catalysts for economic development, offering potential benefits across various sectors.
- Diverse economy: wide range of opportunities through strong Professional Services and Manufacturing both have high GVA, and a large public, tourism, retail sectors with high and diverse employment.
- Economic Pressures and Opportunities: challenges and opportunities, emphasising the importance of collaboration, investment, and innovation for sustainable growth.
Reflections on how place-based approaches can help drive inclusive growth strategies
- People: Addressing skills gaps and promoting workforce development to ensure all residents can participate in and benefit from economic growth. Promote fair wages.
- Places: Enhancing local infrastructure and public services to support community well-being, health and economic resilience. Investment zones which target underdeveloped areas, attract investment and create jobs.
- Business: Supporting local businesses and fostering innovation to create diverse and sustainable economic opportunities. Create innovation hubs which create highly skilled job, spin-outs and business growth.
- Collaborative Projects: Engaging with local stakeholders, communities and the private sector to develop and implement policies that promote equitable growth.
- Research and Analysis: Providing data-driven insights to inform policy decisions and investment strategies, future-proofing the people and businesses – AI/Green/international.
So how can we tackle this?
The core of making a difference is helping people access these jobs, giving them the skills, and networks and demonstrating the opportunities. A partnership-based approach that helps individuals access the opportunities opening up through growth in the city is essential. Making sure those responsible for programmes and recruitment recognise the small geographies involved and the potential opportunity.
This blog was written by Rebecca Riley, Associate Professor for Enterprise, Engagement and Impact and Co-Director of City-REDI / WMREDI, University of Birmingham.
Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI or the University of Birmingham.