Prime Minister Andy Burnham has backed plans to grow the West of England economy by around £1bn through a new investment fund that will pay for redevelopment across Bristol and Bath.
The Future Places Fund, a large new pot of cash, is expected to help boost the region's economy by approximately £1bn while creating almost 1,200 jobs each year in construction alone. Under the proposals, the West of England Combined Authority (Weca) will initially spend £130m - the largest single investment in the organisation's history.
Funding breakdown and investment plans
This initial spending will be made up of the £45m secured in the spring from the national Brownfield Housing Fund, £20m from the West's Transport for City Regions allocation, and a further £65m of strategic borrowing by the combined authority. The plans would also look to leverage hundreds of millions of pounds of further investment from the public and private sectors into residential and commercial development.
The initiative, an evergreen revolving fund with returns reinvested, is by the end of 2029 expected to help build up to 370,000 square feet of new commercial space and some 2,000 new homes. According to Weca, more than £400m of investment from the combined authority and additional funding from partners would result in an economic boost worth up to £976m for the region's construction sector and supply chain over the next decade.
Political support for the scheme
"Good growth means growth that people can see and feel in their own communities," the Prime Minister said. "The Future Places Fund will be reinvested, so public money keeps working year after year. That means homes get built, sites are brought back into use, and good jobs are created right across the region."
Helen Godwin, mayor of the West of England, said: "As big as our £1bn ambition is, good growth is not just about numbers. It's about people seeing that they can afford to live and work in places like Bath and Bristol, and seeing their place in our bright future."
The West of England is worth £54bn to the UK's economy, according to Weca, which says it is one of the "most productive" regions outside of London. Bristol Temple Quarter, Brabazon & the West Innovation Arc, and the Bath Riverside Innovation District offer the chance for 50,000 new homes and tens of thousands of new jobs.
Government backing and regional growth
Chancellor John Healey said: "The people of the West of England know better than anyone what’s needed to create jobs, offer new opportunities to the next generation and grow the local economy. This £65m of government funding is helping bring public and private investment together, building more homes and creating good jobs and opportunities across the region."
Business Secretary Jonathan Reynolds said the West of England was "already home to world-class industries" and the fund would "unleash their full potential", while creating more jobs locally. The West of England's economy grew four times faster than the national average during 2019 to 2023, and in 2023 the region grew by almost three per cent, outperforming every other combined authority area and London.
Councillor Tony Dyer, leader of Bristol City Council, said: "Everywhere here in the country's fastest-growing regional economy has such exciting potential. Together with the mayor, we will keep pushing for the funding we need to help secure more affordable housing provision and social value, and unlock the West of England's full potential." Plans for the Future Places Fund will be published ahead of the mayor and council leaders' next meeting on October 23, with the scheme launched in November subject to committee approval.
