Milton Keynes 

            Implications for the West Midlands

Background

The Government’s Sustainable Communities Plan addressed the issue of the under supply of affordable homes in south east England. The Plan proposed to increase the number of houses in the South East region by an additional 200,000 on top of the planned 900,000 homes planned between 1996 to 2016 for the South East region.

The Government stated that four areas had been identified for the housing to be built. They are Ashford, Milton Keynes, Thames Gateway and the London – Stansted – Cambridge corridor. For the West Midlands region, concerns have been expressed by businesses, local authorities and other organisations regarding the implications for West Midlands’ jobs and the regional economy with the Milton Keynes development.

Milton Keynes – The Concerns

Milton Keynes –Northamptonshire growth area is just a short distance from the Warwickshire border and from Coventry.

With some estimates that the Milton Keynes-Northamptonshire development could become at least twice the size of Birmingham (1), fears have been expressed that resources could be diverted away from the West Midlands region to address the growing Milton Keynes area.

There is also a fear that infrastructure developments could be skewed to address the growing Milton Keynes – Northamptonshire housing led development and that this could lead to further pressures on the groaning transport infrastructure within the West Midlands region.

There are also concerns relating to the potential migration of skilled workers. Workers could relocate to be within easy reach of the West Midlands region and the Milton Keynes area. This migration could upset the existing regeneration plans of Coventry and other parts of the southern West Midlands area and could have a knock on effect upon the economic development of the whole of the region.

Jobs

Currently there are high rates of unemployment across the region:

Area

Birmingham               5.5%

Sandwell                    4.8%

Wolverhampton         4.8%

Coventry                     3.5%

Stoke                          2.9%

(2)

The Regional Economic Strategy (RES) - as developed under the leadership of the Regional Development Agency – Advantage West Midlands – and the Regional Spatial Strategy (RSS) – as developed by the West Midlands Regional Assembly – are designed to address these high levels and related deprivation problems with a range of economic development policies for the urban parts of the region. Rural concerns are also addressed in the two strategy documents.

The RES/RSS do not, though, take into full consideration the implications of the Milton Keynes developments.

The development of Milton Keynes could create an alternative investment opportunity that would lead to business opportunities – and therefore potential new jobs – being lost to the West Midlands region.

Business – Working with the Milton Keynes Development

The business sector, as represented by the West Midlands Business Council, is unable to support the Milton Keynes development until we are aware of the technical assessments regarding the potential impact of the development upon the West Midlands region.

We believe there is a possibility that there is a potential for this development to be good for business and new jobs in the region – but only if Milton Keynes is seen as a national project and not just designed to address the housing crisis in London and the South East.

If the modelling of the Milton Keynes development takes into consideration the existing infrastructure requirements of the West Midlands – and if the modelling develops into a business led – as well as a housing led - development – not only will this make the Milton Keynes development sustainable in the long term but this could provide a new market for businesses in the West Midlands region.

For example, plans could be put in place for Birmingham International Airport to be the aviation hub for Milton Keynes. Business Parks could be developed to develop supply chain businesses with manufacturers in the West Midlands. The potential of a larger number of people living in Milton Keynes could be utilised for a potential new market for the tourism sector in the West Midlands region.

None of this, though, can be achieved if Milton Keynes is geared solely to developing housing for South East commuters. If this happens, Milton Keynes could scupper regeneration plans for the West Midlands region – leading to potentially higher levels of unemployment.

What Can Be Done?

The Milton Keynes development can be a success for the West Midlands region – if the West Midlands are treated as an equal partner in this development.

That is why the West Midlands Business Council – representing every business sector in every part of the West Midlands region – would be willing to work with the Government on ensuring this development is a success.

We would also encourage the Government to ensure that West Midlands' statutory bodies – Advantage West Midlands and the Government Office for the West Midlands – are also involved in the planning of the Milton Keynes development – making this a truly national project for our country.

Together, we could ensure this development a success if full information is offered to the West Midlands regarding the potential impact and if the West Midlands business community is fully involved.

If you wish to know more about the West Midlands Business Council’s position on Milton Keynes – or other business issues – or you wish to work with the West Midlands Business Council, please contact:

James Watkins – Executive Director

West Midlands Business Council

Albert House

Quay Place

92/93 Edward Street

Birmingham

B1 2RA

T: 0121 245 0140

F: 0121 245 0141

E: info@wmbusinesscouncil.org.uk

W: www.wmbusinesscoucil.org.uk

Notes:

(1)                 Based on an assessment of the figures from the 2004 documentation produced for Milton Keynes and South Midlands Sub Regional Spatial Strategy (Exam 59 paper) produced by the East of England Regional Assembly, East Midlands Regional Assembly and South East of England Regional Assembly and on figures contained in the report Milton Keynes and South Midlands Study (September 2002) as prepared by Roger Tym and Partners/Halcrow/Three Dragons and compared with current census data on the number of households in the Birmingham area.   

(2)        Office of National Statistics –August 2003