The national and regional context

The Council Plan takes into account the broader national and regional context, reflecting how Solihull can adapt to challenges and take advantage of opportunities. 

The economy 

Solihull remains one of the highest performing economies in the UK. Our economy supports more than 151,000 jobs and on a per capita basis is the 4th largest labour market outside of London and the South-East. Furthermore, Solihull generates economic output worth over £9.32bn, and is home to significant regional assets such as Birmingham Airport, NEC and Jaguar Land Rover. 

As a key driver of economic growth for the region, we expect the borough to feature prominently in the West Midlands Combined Authority’s Growth Plan, which is aligned with the Government’s national growth mission. We are promoting and supporting the economic opportunities in Solihull through our Place-Based Strategy. 

Nationally, economic growth, productivity and wage increases have been subdued over recent years and household incomes have been squeezed as a result. Below average GDP growth is projected to continue, due in part to the continued global uncertainty. However, Solihull has strong economic foundations and is well-placed to weather any storms.

In recent years, there have been troubling national and regional trends around economic inactivity, which is on the rise due to long-term sickness being a particular concern. We need to better understand why this is happening in Solihull and encourage those who are inactive back into the labour market. To help address this, we are taking a leading role in delivering new models of public service delivery, for example through joined-up work and health initiatives. 

National policy 

We continue to monitor and respond to changes in government policy: 

A new National Planning Policy Framework (NPPF) was published in December 2024, which sets out the Government’s planning policies for England and how these should be applied. The NPFF is increasing our obligation to build more housing in Solihull, which we will seek to balance with protecting the characteristics of the borough. 

The Government’s English Devolution White Paper (EDWP), also published in December 2024, proposed a series of reforms to regional and local government. It set out the Government’s plans to widen devolution arrangements to all areas across England. 

In Solihull, officers and members continue to work closely with the WMCA and constituent local authorities to seize the opportunities associated with devolution.

The West Midlands Combined Authority (WMCA) became one of two English regions to receive an ‘Integrated Settlement (IS)’ from government. The IS brings together funding across five functional responsibilities – adult skills and employment, housing and regeneration, net zero (buildings retrofit), transport and local growth and place – into a single funding pot. That means the WMCA, alongside local authority partners like Solihull, will have greater certainty and more flexibility and control over funding. In Solihull, our Place-Based Strategy sets out how we will utilise the IS funding to progress local priorities. 

The EDWP included proposals to provide combined authority mayors with more powers over planning and development. We continue to monitor these developments and are engaging with the WMCA to represent Solihull’s interests. 

Long-awaited reforms to local government finance were also announced through the EDWP. From 2026/27, the Government will provide multi-year funding settlements for local authorities and reduce the number of restrictive pots of money. Alongside this, the Government is also considering a new model for locally raised business rates for local authorities. 

In parallel, the Government is proposing to reform how local government finance is allocated to better reflect the diverse needs of local areas. We are awaiting the outcome of a consultation on the proposals, and this could have a significant impact on Solihull.

Regulatory responsibilities 

As a Council, we have hundreds of statutory duties to fulfil. Some of the areas where we have regulatory responsibilities include social care, education, public health, homelessness, housing, waste and recycling, maintaining highways and the public realm, environmental health and trading standards. Our regulatory responsibilities continue to evolve, reflecting national policy. 

Our performance is scrutinised through several regulatory frameworks including:

• Inspection of local authority Children’s Services by the Office for Standards in Education (OFSTED) and Joint Targeted Area Inspections.
• The Special Education Needs and Disabilities (SEND) inspection framework.
• Care Quality Commission assurance of council Adult Social Care functions.
• A regulatory framework for social housing, which came into effect on 1 April 2024.

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