This blog highlights the work of the West Midlands Economic Development Institute (WMREDI) in developing evidence-based policy, business cases, and evaluation frameworks to support regional growth. It discusses WMREDI’s impact on building analytical capabilities, fostering resilience, and shaping local industrial strategies through innovative tools, research, and collaborations.
In the dynamic landscape of regional policy development, the West Midlands Economic Development Institute (WMREDI) has become a pivotal force in helping to shape evidence-based policy and enhance the analytical capabilities of the West Midlands city region.
This chapter of the WMREDI Story, highlights the journey WMREDI has taken in developing its evidence base, collaborating with partners, and applying HM Treasury’s Green Book methodology to support the design and appraisal of business cases. Through this work, WMREDI has empowered local stakeholders, built capacity, and helped to position the region for sustainable, inclusive growth.
The Role of Evidence in Shaping Policy
At the core of WMREDI’s work is the development of a strong evidence base that is integral to creating robust, effective policy. This evidence-driven approach follows the government’s policy cycle, known as the ROAMEF framework, as outlined in HM Treasury’s Green Book.
This cycle emphasizes the need to provide a clear rationale for policy interventions, assess the economic and social impacts, design interventions, and evaluate their success. By focusing on these stages, WMREDI has helped local authorities, academic institutions, and policymakers build the evidence needed to inform decisions and ensure that resources are allocated effectively.
One of the first steps in this process involves developing the economic rationale for intervention. This means identifying the pressing issues in the region and defining strategic objectives that align with the broader goals of the West Midlands Combined Authority (WMCA). For example, in partnership with PwC, WMREDI conducted a prioritization of the 2020 Comprehensive Spending Review (CSR) proposals, providing economic assessments of potential interventions for the region. This was an important exercise, as it helped to demonstrate the economic value of the proposed projects and their alignment with national policy objectives.
Business Case Development and Capacity Building
WMREDI’s expertise in developing business cases has led to its recognition as a centre of excellence for business case development. The team has applied HM Treasury’s Five Case Framework and Better Business Cases methodologies to create business cases that are both rigorous and adaptable to the needs of the region.
These methodologies combine economic, financial, and policy analysis to assess the viability of proposed projects. WMREDI’s team, which includes economists, evaluators, and policy experts, has worked closely with regional stakeholders, often serving as advisors, consultants, and critical friends to ensure that business cases are robust and reflect local priorities.
The Business Case Lab, established in 2021, is a testament to WMREDI’s commitment to building local capacity. This lab brought together a team of experts from diverse fields, including economics, business, and finance, and enabled them to become accredited in HM Treasury’s Better Business Cases qualification. This qualification, which forms part of a wider training program, has helped over 60 local government officials, service providers, and academics to better understand the principles of business case development and apply them in practice.
The approach to business case development goes beyond technical knowledge. It incorporates collaboration, stakeholder engagement, and practical application of the Green Book’s guidelines to evaluate and prioritize interventions. By running workshops and facilitating discussions, WMREDI has supported the development of rationales, identified benefits, and appraised options in ways that are grounded in real-world needs and local conditions.
Evaluation and Developing a Culture of Learning
Alongside business case development, evaluation has been central to WMREDI’s work. The creation of an Evaluation Lab has been key in piloting innovative evaluation approaches with regional partners. This lab has been instrumental in developing a culture of evaluative thinking across the region.
As part of this initiative, WMREDI has adopted a transdisciplinary approach to evaluation, drawing on academic theory and practical expertise to inform decision-making processes. The team has been heavily influenced by thinkers such as Michael Quinn Patton and his Utilization-Focused Evaluation (UFE) model, as well as developmental evaluation techniques designed for complex, dynamic environments.
WMREDI’s commitment to evaluation also aligns with its focus on inclusive growth. By using the OECD’s evaluation criteria, WMREDI ensures that its work supports sustainable development goals (SDGs) and promotes social equity, gender equality, and economic inclusion. These criteria guide the Institute’s evaluations, helping to assess the social and economic impacts of interventions with a view toward long-term, sustainable outcomes.
The emphasis on developmental evaluation and the use of the theory of change and logic modelling has also allowed WMREDI to refine its approach over time. By continuously learning from previous evaluations and feeding those insights into future policies and projects, WMREDI has ensured that its work remains relevant and responsive to the region’s evolving needs.
Innovative Tools and Methods for Policy Insights
In addition to its work on business cases and evaluations, WMREDI has been at the forefront of developing new tools and techniques to provide high-quality economic intelligence to policymakers. Among the most notable tools developed is the Socio-Economic Impact Model for the UK (SEIM-UK). This model allows for detailed, region-specific economic analysis and has proven invaluable in assessing the economic impacts of policy interventions at the regional level. The SEIM-UK is a multi-region input-output model that tracks the interrelationships between industries, regions, and household characteristics across the UK. Its ability to provide granular economic insights has been essential for regional policymakers seeking to understand the local economic impacts of their decisions.
Another innovative tool developed by WMREDI is the homelessness prediction model. This tool uses data from various sources to predict homelessness trends in the West Midlands, providing policymakers with insights on where and how to direct resources. Developed in response to the COVID-19 pandemic and its impact on housing stability, the homelessness prediction model considers factors such as furlough data, Universal Credit recipients, and demographic trends to forecast future needs.
Moreover, WMREDI has developed a series of data dashboards to help policymakers assess the impact of higher education institutions, track levelling up progress across local authorities, and measure the civic impact of various regional actors. These dashboards provide a transparent, data-driven view of regional performance and help to ensure that interventions are targeted where they are most needed.
Shaping Industrial Strategy and Fostering Resilience
WMREDI’s impact extends beyond business case development and evaluation. It has played a critical role in shaping the industrial strategy of the West Midlands, highlighting the importance of overlooked sectors such as Professional and Business Services (PBS). Research conducted by WMREDI demonstrated that the PBS sector constitutes a significant portion of the regional economy and has the potential to drive growth and innovation across various industries. This research helped to position the PBS sector as a core focus in the region’s Local Industrial Strategy (LIS) and has led to over £2 billion in new investments.
In the wake of the COVID-19 pandemic, WMREDI’s work also supported resilience-building efforts for small and medium-sized enterprises (SMEs). Through initiatives such as the Recovery Advice for Business Scheme, WMREDI helped local businesses access vital resources and policy support during a time of unprecedented economic disruption.
Conclusion
WMREDI’s work in the West Midlands exemplifies the power of evidence-based policy and strategic business case development. Through a combination of rigorous analysis, innovative tools, and close collaboration with local stakeholders, the Institute has helped to shape policies and interventions that promote inclusive growth, resilience, and long-term prosperity. By continuing to build capacity, provide high-quality economic intelligence, and foster a culture of evaluative learning, WMREDI is setting the stage for a more resilient and sustainable future for the West Midlands city region.
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Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI, WMREDI or the University of Birmingham.