Midlands and South-west launch rival growth area

An economic powerhouse to rival the South-east is to be created in the Midlands and South-west under plans being drawn up by three regional development agencies.

The proposals – badged the "Heart of Opportunity" – would see greater links forged between the three regions in an attempt to attract economic and housing growth, which it is feared would otherwise take place in the South-east alone.

The chief executives of Advantage West Midlands, South West of England RDA and East Midlands Development Agency presented their plans to regeneration minister Lord Rooker on 2 February.

The move follows the government's launch of a similar growth area for the North earlier this month at which deputy prime minister John Prescott pledged to produce growth strategies for the Midlands and the South-west.

It also coincides with increasingly outspoken criticism of the government's plans for housing and economic growth in Milton Keynes by Midlands politicians.

The plan – still in its early stages – has no definite boundaries, but the main opportunities for growth have been identified as lying between the region's three key cities: Bristol, Birmingham and Nottingham (see "The new powerhouse", left).

Rod Hetherington, head of regeneration and policy at Advantage West Midlands, said: "In capturing and expanding our growth potential we hope to stop getting overlooked in favour of the south or north. We are concerned with capitalising on our own strengths.

In expanding our growth potential we hope to stop getting overlooked in favour of the South or North

Rod Hetherington, Advantage West Midlands

"Existing policies on social, housing and economic regeneration need to be tied together – the market renewal pathfinder, New Deal for Communities projects and Sure Start schemes. Doing 'Heart of Opportunity' allows us much more coordination between regions."

The regional development agencies, supported by other regional groups, have been told to work up the plans in time for the Urban Summit, to be held in Manchester early next year.

Rose Poulter, director of policy for the West Midlands Local Government Association, which has been involved in developing the plans, said: "The plan is to scope out the capacity for growth that exists in the Midlands. Once we have more figures we can begin making a harder case to the government."

Concerns over the government's plans for the four southern growth areas, particularly the Milton Keynes/South Midlands area, have spurred the present proposals.

Earlier this month Bransby Thomas, chair of the West Midlands regional assembly, spelled out the region's opposition to government plans that could see the Milton Keynes growth area housing up to 2.5 million people.