West Midlands economy tops pre-pandemic level, but inequality deepens

The West Midlands economy has recovered to above pre-pandemic levels for the first time, according to a new regional report, but deepening inequality threatens to exclude hundreds of thousands of residents from the benefits of growth. The West Midlands State of the Region 2026 report highlights rising business confidence and investment, yet warns of fragile progress. More than one in three children live in poverty, rising to two in three in some Birmingham neighbourhoods, while 7,383 households are in temporary accommodation. Productivity remains a concern, with GVA per hour falling 2.4% in 2023, and growth is geographically uneven, driven mainly by Birmingham. Long-term sickness, poor health, educational gaps, and housing affordability are identified as central economic challenges requiring integrated solutions.