Birmingham's economy is now dominated by the
service sector.
[23] The city is a major international commercial centre and an important transport, retail, events and conference hub. Its
metropolitan economy is the
second-largest in the United Kingdom with a
GDP of $121.1bn (2014
[update]).
[4] Its five universities,
[24] including the
University of Birmingham, make it the largest centre of
higher education in the country outside London.
[25] Birmingham's major cultural institutions – the
City of Birmingham Symphony Orchestra,
Birmingham Royal Ballet,
Birmingham Repertory Theatre,
Library of Birmingham and
Barber Institute of Fine Arts – enjoy international reputations,
[26] and the city has vibrant and influential grassroots
art,
music,
literary and
culinary scenes.
[27] The city also successfully hosted the
2022 Commonwealth Games.
[28][29] In 2021, Birmingham was the third most visited city in the UK by people from foreign nations.
[30]
The resulting high level of
social mobility also fostered a culture of
political radicalism which, under leaders from
Thomas Attwood to
Joseph Chamberlain, was to give it a political influence unparalleled in Britain outside London and a pivotal role in the development of British democracy.
[22] From the summer of 1940 to the spring of 1943, Birmingham was bombed heavily by the
German Luftwaffe in what is known as the
Birmingham Blitz. The damage done to the city's infrastructure, in addition to a deliberate policy of demolition and new building by planners, led to extensive
urban regeneration in subsequent decades.
Historically a
market town in
Warwickshire in the medieval period, Birmingham grew during the 18th century during the
Midlands Enlightenment and during the
Industrial Revolution, which saw advances in science, technology and economic development, producing a series of innovations that laid many of the foundations of modern
industrial society.
[19] By 1791, it was being hailed as "the first manufacturing town in the world".
[20] Birmingham's distinctive economic profile, with thousands of small workshops practising a wide variety of specialised and highly skilled trades, encouraged exceptional levels of creativity and innovation; this provided an economic base for prosperity that was to last into the final quarter of the 20th century. The
Watt steam engine was invented in Birmingham.
[21]
Located in the
West Midlands region of England, approximately 100 miles (160 km) from
London, Birmingham is considered to be the social, cultural, financial and commercial centre of the
Midlands. It is just west of the traditional centre point of England at
Meriden,
[16] and is the most inland major city in the country,
[17] and lying north of the
Cotswolds and east of the
Shropshire Hills. Distinctively, Birmingham only has small rivers flowing through it, mainly the
River Tame and its tributaries
River Rea and
River Cole – one of the closest main rivers is the
Severn, approximately 20 miles (32 km) west of
the city centre. The city does however have numerous
canals, collectively named the
Birmingham Canal Navigations.
[18]
Birmingham (
[5][6][7] BUR-ming-əm) is a
city and
metropolitan borough in the
metropolitan county of
West Midlands in
England. It is the second-largest city in Britain
[b][8] – commonly referred to as the
second city of the United Kingdom[9][10][11][12][13] – with a population of 1.145 million in the
city proper.
[14] Birmingham borders the
Black Country to its west and together with its city of
Wolverhampton and towns including
Dudley and
Solihull to the south-east, forms the
West Midlands conurbation. The
wider metropolitan area has a population of 4.3 million, making it the
largest outside of London.[15]About Birmingham
There is evidence of early human activity in the Birmingham area dating back to around 8000 BC, with Stone Age artefacts suggesting seasonal settlements, overnight hunting parties and woodland activities such as tree felling. The many burnt mounds that can still be seen around the city indicate that modern humans first intensively settled and cultivated the area during the Bronze Age, when a substantial but short-lived influx of population occurred between 1700 BC and 1000 BC, possibly caused by conflict or immigration in the surrounding area. During the 1st-century Roman conquest of Britain, the forested country of the Birmingham Plateau formed a barrier to the advancing Roman legions, who built the large Metchley Fort in the area of modern-day Edgbaston in AD 48, and made it the focus of a network of Roman roads. Birmingham was then later established by the Beormingas around the 6th or 7th century as a small settlement in the then heavily forested Arden region in Mercia.
The development of Birmingham into a significant urban and commercial centre began in 1166, when the Lord of the Manor Peter de Bermingham obtained a charter to hold a market at his castle, and followed this with the creation of a planned market town and seigneurial borough within his demesne or manorial estate, around the site that became the Bull Ring. This established Birmingham as the primary commercial centre for the Birmingham Plateau at a time when the area's economy was expanding rapidly, with population growth nationally leading to the clearance, cultivation and settlement of previously marginal land. Within a century of the charter Birmingham had grown into a prosperous urban centre of merchants and craftsmen. By 1327 it was the third-largest town in Warwickshire, a position it would retain for the next 200 years.
The principal governing institutions of medieval Birmingham – including the Guild of the Holy Cross and the lordship of the de Birmingham family – collapsed between 1536 and 1547, leaving the town with an unusually high degree of social and economic freedom and initiating a period of transition and growth. By 1700 Birmingham's population had increased fifteen-fold and the town was the fifth-largest in England and Wales.
The importance of the manufacture of iron goods to Birmingham's economy was recognised as early as 1538, and grew rapidly as the century progressed. Equally significant was the town's emerging role as a centre for the iron merchants who organised finance, supplied raw materials and traded and marketed the industry's products. By the 1600s Birmingham formed the commercial hub of a network of forges and furnaces stretching from South Wales to Cheshire and its merchants were selling finished manufactured goods as far afield as the West Indies. These trading links gave Birmingham's metalworkers access to much wider markets, allowing them to diversify away from lower-skilled trades producing basic goods for local sale, towards a broader range of specialist, higher-skilled and more lucrative activities.
By the time of the English Civil War Birmingham's booming economy, its expanding population, and its resulting high levels of social mobility and cultural pluralism, had seen it develop new social structures very different from those of more established areas. Relationships were built around pragmatic commercial linkages rather than the rigid paternalism and deference of feudal society, and loyalties to the traditional hierarchies of the established church and aristocracy were weak. The town's reputation for political radicalism and its strongly Parliamentarian sympathies saw it attacked by Royalist forces in the Battle of Birmingham in 1643, and it developed into a centre of Puritanism in the 1630s and as a haven for Nonconformists from the 1660s.
The 18th century saw this tradition of free-thinking and collaboration blossom into the cultural phenomenon now known as the Midlands Enlightenment. The town developed into a notable centre of literary, musical, artistic and theatrical activity; and its leading citizens – particularly the members of the Lunar Society of Birmingham – became influential participants in the circulation of philosophical and scientific ideas among Europe's intellectual elite. The close relationship between Enlightenment Birmingham's leading thinkers and its major manufacturers – in men like Matthew Boulton and James Keir they were often in fact the same people – made it particularly important for the exchange of knowledge between pure science and the practical world of manufacturing and technology. This created a "chain reaction of innovation", forming a pivotal link between the earlier scientific revolution and the Industrial Revolution that would follow.
Birmingham's explosive industrial expansion started earlier than that of the textile-manufacturing towns of the North of England, and was driven by different factors. Instead of the economies of scale of a low-paid, unskilled workforce producing a single bulk commodity such as cotton or wool in large, mechanised units of production, Birmingham's industrial development was built on the adaptability and creativity of a highly paid workforce with a strong division of labour, practising a broad variety of skilled specialist trades and producing a constantly diversifying range of products, in a highly entrepreneurial economy of small, often self-owned workshops. This led to exceptional levels of inventiveness: between 1760 and 1850 – the core years of the Industrial Revolution – Birmingham residents registered over three times as many patents as those of any other British town or city.
The demand for capital to feed rapid economic expansion also saw Birmingham grow into a major financial centre with extensive international connections. Lloyds Bank was founded in the town in 1765, and Ketley's Building Society, the world's first building society, in 1775. By 1800 the West Midlands had more banking offices per head than any other region in Britain, including London.
Innovation in 18th-century Birmingham often took the form of incremental series of small-scale improvements to existing products or processes, but also included major developments that lay at the heart of the emergence of industrial society. In 1709 the Birmingham-trained Abraham Darby I moved to Coalbrookdale in Shropshire and built the first blast furnace to successfully smelt iron ore with coke, transforming the quality, volume and scale on which it was possible to produce cast iron. In 1732 Lewis Paul and John Wyatt invented roller spinning, the "one novel idea of the first importance" in the development of the mechanised cotton industry. In 1741 they opened the world's first cotton mill in Birmingham's Upper Priory. In 1746 John Roebuck invented the lead chamber process, enabling the large-scale manufacture of sulphuric acid, and in 1780 James Keir developed a process for the bulk manufacture of alkali, together marking the birth of the modern chemical industry. In 1765 Matthew Boulton opened the Soho Manufactory, pioneering the combination and mechanisation under one roof of previously separate manufacturing activities through a system known as "rational manufacture". As the largest manufacturing unit in Europe, this came to symbolise the emergence of the factory system.
Most significant, however, was the development in 1776 of the industrial steam engine by James Watt and Matthew Boulton. Freeing for the first time the manufacturing capacity of human society from the limited availability of hand, water and animal power, this was arguably the pivotal moment of the entire industrial revolution and a key factor in the worldwide increases in productivity over the following century.
Birmingham rose to national political prominence in the campaign for political reform in the early 19th century, with Thomas Attwood and the Birmingham Political Union bringing the country to the brink of civil war during the Days of May that preceded the passing of the Great Reform Act in 1832. The Union's meetings on Newhall Hill in 1831 and 1832 were the largest political assemblies Britain had ever seen. Lord Durham, who drafted the Act, wrote that "the country owed Reform to Birmingham, and its salvation from revolution". This reputation for having "shaken the fabric of privilege to its base" in 1832 led John Bright to make Birmingham the platform for his successful campaign for the Second Reform Act of 1867, which extended voting rights to the urban working class.
The original Charter of Incorporation, dated 31 October 1838, was received in Birmingham on 1 November, then read in the Town Hall on 5 November with elections for the first Birmingham Town Council being held on 26 December. Sixteen Aldermen and 48 Councillors were elected and the Borough was divided into 13 wards. William Scholefield became the first Mayor and William Redfern was appointed as Town Clerk. Birmingham Town Police were established the following year.[citation needed]
Birmingham's tradition of innovation continued into the 19th century. Birmingham was the terminus for both of the world's first two long-distance railway lines: the 82-mile (132 km) Grand Junction Railway of 1837 and the 112-mile (180 km) London and Birmingham Railway of 1838. Birmingham schoolteacher Rowland Hill invented the postage stamp and created the first modern universal postal system in 1839. Alexander Parkes invented the first human-made plastic in the Jewellery Quarter in 1855.
By the 1820s, the country's extensive canal system had been constructed, giving greater access to natural resources and fuel for industries. During the Victorian era, the population of Birmingham grew rapidly to well over half a million and Birmingham became the second largest population centre in England. Birmingham was granted city status in 1889 by Queen Victoria. Joseph Chamberlain, mayor of Birmingham and later an MP, and his son Neville Chamberlain, who was Lord Mayor of Birmingham and later the British Prime Minister, are two of the most well-known political figures who have lived in Birmingham. The city established its own university in 1900.
The city suffered heavy bomb damage during World War II's "Birmingham Blitz". The city was also the scene of two scientific discoveries that were to prove critical to the outcome of the war. Otto Frisch and Rudolf Peierls first described how a practical nuclear weapon could be constructed in the Frisch–Peierls memorandum of 1940, the same year that the cavity magnetron, the key component of radar and later of microwave ovens, was invented by John Randall and Henry Boot. Details of these two discoveries, together with an outline of the first jet engine invented by Frank Whittle in nearby Rugby, were taken to the United States by the Tizard Mission in September 1940, in a single black box later described by an official American historian as "the most valuable cargo ever brought to our shores".
The city was extensively redeveloped during the 1950s and 1960s. This included the construction of large tower block estates, such as Castle Vale. The Bull Ring was reconstructed and New Street station was redeveloped. In the decades following World War II, the ethnic makeup of Birmingham changed significantly, as it received waves of immigration from the Commonwealth of Nations and beyond. The city's population peaked in 1951 at 1,113,000 residents.
21 people were killed and 182 were injured in a series of bomb attacks in 1974, thought to be carried out by the Provisional IRA. The bombings were the worst terror attacks in England up until the 2005 London bombings and consisted of bombs being planted in two pubs in central Birmingham. Six men were convicted, who became known later as the Birmingham Six and sentenced to life imprisonment, who were acquitted after 16 years by the Court of Appeal. The convictions are now considered one of the worst British miscarriages of justice in recent times. The true perpetrators of the attacks are yet to be arrested.
Birmingham remained by far Britain's most prosperous provincial city as late as the 1970s, with household incomes exceeding even those of London and the South East, but its economic diversity and capacity for regeneration declined in the decades that followed World War II as Central Government sought to restrict the city's growth and disperse industry and population to the stagnating areas of Wales and Northern England. These measures hindered "the natural self-regeneration of businesses in Birmingham, leaving it top-heavy with the old and infirm", and the city became increasingly dependent on the motor industry. The recession of the early 1980s saw Birmingham's economy collapse, with unprecedented levels of unemployment and outbreaks of social unrest in inner-city districts.
Since the turn of the 21st century, many parts of Birmingham have been transformed, with the redevelopment of the Bullring Shopping Centre, the construction of the new Library of Birmingham (the largest public library in Europe) and the regeneration of old industrial areas such as Brindleyplace, The Mailbox and the International Convention Centre, as well as the rationalisation of the Inner Ring Road. In 1998 Birmingham hosted the 24th G8 summit. The city successfully hosted the 2022 Commonwealth Games.
On 5 September 2023 Birmingham city council issued a Section 114 notice to say that it could not meet its financial commitments. Effectively this meant the council was bankrupt. A major contributing factor being a £1.1b sum that has been paid out since 2010, for equal pay claims. there is still a bill for £760m, increasing by £14m a month. There is also problems with a new IT system that was projected to cost £19m but is now closer to £100m. In addition there is a projected £87m deficit for the financial year 23/24.