A major new regional investment fund, anticipated to help grow the West of England’s economy by £1 billion, has been announced today and welcomed by the Prime Minister, Chancellorof the Exchequer, Business Secretary, and Housing Secretary.
The Future Places Fund is set to be kickstarted by an initial £130 million investment from the West of England Mayoral Combined Authority – the largest single investment in the organisation’s history – into the future of the country’s fastest-growing regionaleconomy, creating and supporting almost 1,200 jobs each year in construction alone.
Utilisingthe £45 million secured in the spring by Mayor Helen Godwin from the national Brownfield Housing Fund; £20 million from the West’s Transport for City Regions allocation, to help unlock development; and a further £65 million of strategic borrowingby the combined authority, the landmark investment plans would 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 anticipated to help build up to 370,000 square feet of new commercial space and unlock building some 2,000 new homes. It would spur an economic boost worth up to almost£300 million for the construction sector and supply chain during that time, with significant wider benefits expected to be realised across the region.
The modelling* conducted by BBRC, a place-based impact investor and FCA-authorised fund manager, based on its potential investment pipeline, found that a 10-year funding period for the Future Places Fund, mirroring funding structures from other regions, including GreaterManchester, would directly support the delivery of up to 6,000 new homes and more than 1.35 million square feet of new commercial space.
Over £400 million of investment from the combined authority and additional funding from partners would result in an economic boost worth up to £976 million within the region for the construction sector and supply chain over the next decade.
Helen Godwin, Mayor of the West of England, said:
“As big as our £1 billion 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 Future Places Fund can unlock thousands of the new homes and new jobs that local people need. It will help deliver change for all of our communities to see and feel, and should make us be proud of the difference that renewed investment will mean.
“From Concorde to today’s cutting-edge research and development in our region, so often the future starts here in the West of England. Now, investors have an even bigger opportunity to be part of that in the country’s fastest-growing regional economy.”
Prime Minister Andy Burnham said:
“Good growth means growth that people can see and feel in their own communities. 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.
“The West of England is already one of the most productive parts of the country. With this fund, Mayor Helen Godwin and local leaders are using their devolved powers to makesure that growth reaches every community, so families can afford a home in Bristol and Bath and young people can see a future for themselves where they grew up.
“This is what devolution is for. Places taking control of their own future, with this government backing them all the way.”
Chancellor John Healey MP 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 £65 million of government funding is helping bring public and private investment together, building more homes and creating good jobs and opportunitiesacross the region.
“That is how we deliver good growth in every postcode, giving local leaders the backing they need to create more opportunities for local people.”
Secretary of State for Housing, Communities and Local Government, Angela Rayner said:
“Devolution is about local communities seeing progress right on their doorstep. That’s why we’re backing the Mayor to transform eyesore land into the homes, jobs and opportunities local people want and deserve.
“By putting power closer to local people, we’re helping unlock the potential for £1 billion investment into the West of England, supporting thousands of new homes, good jobs and a thriving regional economy.”
Business Secretary Jonathan Reynolds said:
“The West of England is already home to world-class industries – and this fund is a fantastic opportunity to unleash their full potential, create more local jobs and power the next chapter of growth across the region.
“By working hand in hand with local government and mayors, we are putting our Industrial Strategy into action – unlocking investment in new homes, vital infrastructure and commercial space, opening up exciting opportunities for local people and deliveringgrowth that can be felt in every postcode.”
Worth more than £54 billion already, the West is the most productive region outside of the capital and launched a £17 billion Investment Prospectus earlier this year at the UK’s Real Estate, Investment & Infrastructure Forum (UKREiiF) – including plans for the Future Places Fund and:
- BristolTemple Quarter and Brabazon & the West Innovation Arc, multi-billion-pound developments which, alongside the Bath Riverside Innovation District, offer the chance for 50,000 new homes and tens of thousands of new jobs
- Transport infrastructure including mass transit, as part of the region’s Transport Vision, with plans backed by record funding from government and delivery supported by the Prime Minister during his visit to Bath in the summer and in recent weeks at Number 10 North
Councillor Kevin Guy, Leader of Bath & North East Somerset Council; Councillor Tony Dyer, Leader of Bristol City Council and Deputy Mayor of the West of England; Councillor Mike Bell, Leader of North Somerset Council; Councillor Maggie Tyrrell, Leader ofSouth Gloucestershire Council, and Councillor Ian Boulton, Co-Leader of South Gloucestershire Council, said in a joint statement:
“Our joint Growth Strategy for the next ten years makes the case for the investment which our region deserves, and which the Future Places Fund would help unlock projects that have slowed or stalled and bring forward new homes, jobs and community benefits- to help speed up the delivery of housing people can afford and secure a return on investment. Everywhere here in the country’s fastest-growing regional economy has such exciting potential, in particular our growth zones: Central Bristol & Bath, and the NorthSomerset Growth Gateway, Severn Estuary, Somer Valley, and West Innovation Arc. 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.”
Construction is a key part of the everyday economy, one of the key growth sectors in theWest of England’s ambitious Growth Strategy. The everydayeconomy accounts for 57% of jobs in the country’s fastest-growing region economy. In the last decade, businesses in the cities of Bath and Bristol and nearby towns and villages created some 100,000 new jobs – with the fastest jobs growth ofany region in the country in key sectors, including the everyday economy (+17%), digital and tech (+52%), creative industries (+82%), and clean energy (+140%).
Earliertoday, the Mayor announced £11.5 million of new funding to create 4,500 new training places across the region, with almost half of those on construction courses; provide 1,100 construction learners with placements on live sites; support more people intoapprenticeships; and get qualified trade professionals to work directly with students, delivering masterclasses and practical training.
The West of England’s economy grew four times faster than the national average during the most recent period for which data is available (2019-23). In 2023, the region grew by almost 3% – outperforming every other combined authority area and London. The Westof England Growth Strategy published in September 2025 set out an ambition to further grow the economy by 28% over the coming decade.
Louise Warden, Investment Director at Real Estate and Infrastructure at LPPI (Local Pensions Partnership Investments), said:
“LPPI has worked with WECA over the past six months in the development of the Future Places Fund. Throughout this period we have found the engagement constructive and thoughtful, with a clear focus on developing an approach that seeks to balance local economicobjectives with robust investment and governance considerations. We have been pleased to contribute our experience and support the evolution of the fund’s structure and approach.”
Plans for the Future Places Fund will be published shortly, ahead of the Mayor and council leaders’ next meeting on 23 October.
Subject to committee approval, a fund adviser will be appointed and the scheme launched in November. In the meantime, potential investors interested to register their interest in being kept updated can reach out to: fastest-growing.region@westofengland-ca.gov.uk
*All modelling assumes full capital flexibility, with potential outcome figures cited taken from the upper end of forecasts.
Attached photo – credit: West of England Mayoral Combined Authority / Freia Turland.
Additionalphoto – of the Mayor on a digger at a construction site – credit: West of England Mayoral Combined Authority.
