Agenda, decisions and minutes

Apologies for absence were received from Councillor Lee Carter (Telford & Wrekin), Councillor John Cotton (Birmingham), Councillor Ian Davison (Warwick) and Councillor Abdul Khan (Coventry).

Apologies for absence were received from Councillor Lee Carter (Telford & Wrekin), Councillor John Cotton (Birmingham), Councillor Ian Davison (Warwick), Councillor Abdul Khan (Coventry), Councillor Michael Moran (Rugby) and Councillor Chris Watkins (Nuneaton & Bedworth).

The Chair’s remarks were noted.

(a)      Mayoral Taskforces

The Chair reported that applications for membership of his four taskforces had now closed and he had been pleased with the number of applications that had been received. These were now under review. He reminded the board that he also wished to see political representation on the taskforces, and would welcome nominations from council leaders by 22 November 2024.

Agreed as a correct record.

The minutes of the meeting held on 19 July 2024 were agreed as a correct record, subject to an amendment to minute no. 17 (Bus Reform (Part B - Bus Delivery Option Assessment)) to record that Councillor Ian Courts and Councillor Bob Sleigh both abstained from voting on resolution (1).

The update on recent activity and delivery was noted.

The Chair provided an update on activity that had been occurring within the region since the last meeting of the board. This included Birmingham developing plans to give an additional 2,300 children access to free school meals, Wolverhampton securing £1.4m of Government funding to prepare land to build 150 new homes, Sandwell building new, green council homes in West Bromwich that would make them cheaper to heat and better for the environment, and Solihull finishing improvement work on more than 600 social homes.

In addition to this, as Mayor had secured funding to keep the bus network running, launched the latest Road Safety Strategy for the region, and secured the first tranche of funding for the region’s Investment Zones, which could attract up to £5.5bn and 30,000 jobs into the region.

Resolved:

The update be noted.

(1)      The financial position as at 30 September 2024 was noted.

(2)      The Quarter 1 full year forecast for 2024/25 was noted.

(3)      The new grant awards to the WMCA were noted.

(4)      The update on WMCA’s Medium Term Financial Plan, and the indication that the WMCA would likely be in a position to set a balanced budget for 2025/26, were noted.

(5)      The redistribution of c.£800,000 of WMCA UK Shared Prosperity Funds to local authorities was noted, and authority was delegated to the Section 73 Officer, subject to full agreement by local authority finance directors, to agree the precise allocation between the constituent local authorities.

(6)      It was approved that any further redistributions of UK Shared Prosperity Fund underspends from (and to) relevant authorities was delegated to the Section 73 Officer, subject to obtaining appropriate consent from West Midlands finance directors, noting the regional UK Shared Prosperity Fund performance as at the end of Quarter 2.

(7)      The recharge of 2024/25 Business Rates Growth monies was noted.

(8)      The revised arrangements in respect of the loan facility agreement between the WMCA and Coventry City Council in respect of the UK Battery Industrialisation Centre were noted.

(9)      The Treasury and Prudential Indicators for the period ending 30 September 2024 (Quarter 2) were noted.

The board considered a report of the Executive Director of Finance & Business Hub on the WMCA’s finances as at 30 September 2024, as well as an update on the medium-term financial plan and risks facing the authority.

Resolved:

(1)      The financial position as at 30 September 2024 be noted.

(2)      The Quarter 1 full year forecast for 2024/25 be noted.

(3)      The new grant awards to the WMCA be noted.

(4)      The update on WMCA’s Medium Term Financial Plan, and the indication that the WMCA would likely be in a position to set a balanced budget for 2025/26, be noted.

(5)      The redistribution of c.£800,000 of WMCA UK Shared Prosperity Funds to local authorities be noted, and authority be delegated to the Section 73 Officer, subject to full agreement by local authority finance directors, to agree the precise allocation between the constituent local authorities.

(6)      Any further redistributions of UK Shared Prosperity Fund underspends from (and to) relevant authorities be delegated to the Section 73 Officer, subject to obtaining appropriate consent from West Midlands finance directors, noting the regional UK Shared Prosperity Fund performance as at the end of Quarter 2.

(7)      The recharge of 2024/25 Business Rates Growth monies be noted.

(8)      The revised arrangements in respect of the loan facility agreement between the WMCA and Coventry City Council in respect of the UK Battery Industrialisation Centre be noted.

(9)      The Treasury and Prudential Indicators for the period ending 30 September 2024 (Quarter 2) be noted.

[A confidential appendix to be considered alongside this report is enclosed at agenda item no. 22.]

(1)        An extension to the existing Network Support Grant arrangements from 1 January to 31 March 2025 inclusive, including entering into any legal documentation to effect this change, in order to support the continued provision of commercially operated local bus services was approved.

(2)        It was noted that the Executive Director of Transport for West Midlands, in consultation with the Section 73 Officer and the Monitoring Officer, would finalise relevant documentation ensuring value for money in line with existing delegations.

The board considered a report of the Executive Director of Transport for West Midlands seeking approval for an extension of the existing Network Support Grant paid to local bus operators to support the provision of commercially operated local bus services for a period of three months from 1 January to 31 March 2025.

In addition to the report itself, there was a further private appendix that members considered prior to voting on the recommendations contained within the main report.

Resolved:

(1)      An extension to the existing Network Support Grant arrangements from 1 January to 31 March 2025 inclusive, including entering into any legal documentation to effect this change, in order to support the continued provision of commercially operated local bus services, be approved.

(2)      It be noted that the Executive Director of Transport for West Midlands, in consultation with the Section 73 Officer and the Monitoring Officer, would finalise relevant documentation ensuring value for money in line with existing delegations.

(1)      Subject to ministerial sign off, the continuation of the construction of the metro extension to Merry Hill in line with the business case and funding package which has been formally reviewed and supported by the Department for Transport was approved.

(2)      Subject to appropriate/binding funding confirmations in line with the above, the Section 73 Officer was authorised to establish within the capital programme a budget for the delivery of the metro extension phase 2B totalling £261.4m, noting that work was ongoing to finalise the contractual Target Cost 2 position which could be below this figure.

(3)      The ringfencing of £4.84m of City Region Sustainable Transport Settlement overprogramming to enable the project to move forward was authorised, pending the formal incorporation of identified opportunities in the project budget.

(4)      The Executive Director for Transport for West Midlands, in consultation with the Section 73 Officer, was authorised to approve the Target Cost 2 documentation and any adjustments with the Midland Metro Alliance to deliver the necessary phase 2 works.

(5)      The implications of this decision for the Medium-Term Financial Plan and the progress made by Dudley Metropolitan Borough Council on the development of its place-based strategy and expected growth in housing and employment opportunities which would drive up patronage with the intention of mitigating increased metro subsidy costs over time was noted.

(6)      It was noted that this place-based strategy would advance growth proposals and support the development of a further business case seeking to deliver the final stage of delivery to Brierley Hill High Street.

The board considered a report of the Executive Director of Transport for West Midlands on the progress made in securing approval from the Department for Transport to the transport business case and associated funding for the metro extension to Merry Hill as a retained scheme within the City Region Sustainable Transport Settlement programme, along with the next steps for delivery.

Resolved:

(1)      Subject to ministerial sign off, the continuation of the construction of the metro extension to Merry Hill in line with the business case and funding package which had been formally reviewed and supported by the Department for Transport be approved.

(2)      Subject to appropriate/binding funding confirmations in line with the above, the Section 73 Officer be authorised to establish within the capital programme a budget for the delivery of the metro extension phase 2B totalling £261.4m, noting that work was ongoing to finalise the contractual Target Cost 2 position which could be below this figure.

(3)      The ringfencing of £4.84m of City Region Sustainable Transport Settlement overprogramming to enable the project to move forward be authorised, pending the formal incorporation of identified opportunities in the project budget.

(4)      The Executive Director for Transport for West Midlands, in consultation with the Section 73 Officer, be authorised to approve the Target Cost 2 documentation and any adjustments with the Midland Metro Alliance to deliver the necessary phase 2 works.

(5)      The implications of this decision for the medium-term financial plan and the progress made by Dudley Metropolitan Borough Council on the development of its place-based strategy and expected growth in housing and employment opportunities which would drive up patronage with the intention of mitigating increased metro subsidy costs over time be noted.

(6)      It be noted that this place-based strategy would advance growth proposals and support the development of a further business case seeking to deliver the final stage of delivery to Brierley Hill High Street.

(1)      The Bus Depot Strategy was approved.

(2)      The intention for this strategy to be self-funding where possible was noted.

(3)      It was noted that the bus depot strategy was required regardless of regulatory approach.

(4)      A proposal for the Bus Reform Panel to oversee joint working between the WMCA and local authorities to identify land and infrastructure to support future development of bus depots and the modernisation of infrastructure, with the aim of improving outcomes and preventing excessive costs to purchase existing bus depots and noting that each depot would require an individual business case to go through the relevant governance and funding channel was endorsed.

The board considered a report of the Executive Director of Transport for West Midlands setting out the need to acquire bus depots to support the objectives of the WMCA Board through the Local Transport Plan, Vision for Bus and the regional Bus Service Improvement Plan.

Resolved:

(1)      The Bus Depot Strategy be approved.

(2)      The intention for this strategy to be self-funding where possible be noted.

(3)      It be noted that the bus depot strategy was required regardless of regulatory approach.

(4)      A proposal for the Bus Reform Panel to oversee joint working between the WMCA and local authorities to identify land and infrastructure to support future development of bus depots and the modernisation of infrastructure, with the aim of improving outcomes and preventing excessive costs to purchase existing bus depots, and noting that each depot would require an individual business case to go through the relevant governance and funding channel, be endorsed.

The adoption of the Regional Road Safety Action Plan 2024-30, along with the delivery plan for the refreshed Regional Road Safety Strategy previously approved by the WMCA Board in September 2023 was endorsed.

The board considered a report of the Executive Director of Transport for West Midlands on the Regional Road Safety Action Plan 2024-30, developed to support delivery of the refreshed Regional Road Safety Strategy agreed by the board in September 2023 and the objectives of the Local Transport Plan core strategy agreed by the board in February 2023.

Resolved:

The adoption of the Regional Road Safety Action Plan 2024-30, along with the delivery plan for the refreshed Regional Road Safety Strategy previously approved by the WMCA Board in September 2023, be endorsed.

(1)      The initial work that had been undertaken to review economic development functions in the West Midlands was noted.

(2)      Proceeding with Option 2, at a total cost of £7.25m, to transition to a new consolidated economic development vehicle via a reformed, smaller West Midlands Growth Company was approved, and the three subsequent phases of the review of economic development functions were endorsed.

(3)      Subject to receiving £2.13m from the Integrated Settlement, the allocation of this funding to the West Midlands Growth Company for the next financial year 2025/26 was approved.

(4)      In lieu of the Integrated Settlement confirmations, the WMCA was authorised to underwrite the £2.13m risk from General Reserves.

(5)      The committal of £1.2m of funds from the WMCA budget (£0.7m) and the Investment Zone programme (£0.5m) was authorised.

(6)      The earmarking of £1.25m of reprofiled WMCA Service Level Agreement underspend to be used as funding for the West Midlands Growth Company in 2025/26 was approved.

(7)      For proposals relating to 2026/27 onwards, it was noted that there was no ongoing funding for a regional economic delivery vehicle and so future resources would need to be identified and approved by the WMCA Board, and/or any financial exposure accepted by local authorities could only be accepted following agreement through their local authority governance processes.

The board considered a report of the Executive Director for Strategy, Economy & Net Zero setting out the direction for the WMCA, its constituent authorities and other partners to arrange economic strategy and delivery functions in ways that efficiently realised the region’s ambitions, including the evolving Local Growth Plan.

Resolved:

(1)    The initial work that had been undertaken to review economic development functions in the West Midlands be noted.

(2)    Proceeding with Option 2, at a total cost of £7.25m, to transition to a new consolidated economic development vehicle via a reformed, smaller West Midlands Growth Company be approved, and the three subsequent phases of the review of economic development functions be endorsed.

(3)    Subject to receiving £2.13m from the Integrated Settlement, the allocation of this funding to the West Midlands Growth Company for the next financial year 2025/26 be approved.

(4)    In lieu of the Integrated Settlement confirmations, the WMCA be authorised to underwrite the £2.13m risk from General Reserves.

(5)    The committal of £1.2m of funds from the WMCA budget (£0.7m) and the Investment Zone programme (£0.5m) be authorised.

(6)    The earmarking of £1.25m of reprofiled WMCA Service Level Agreement underspend to be used as funding for the West Midlands Growth Company in 2025/26 be approved.

(7)    For proposals relating to 2026/27 onwards, it be noted that there was no ongoing funding for a regional economic delivery vehicle and so future resources would need to be identified and approved by the WMCA Board, and/or any financial exposure accepted by local authorities could only be accepted following agreement through their local authority governance processes.

[NB. Councillor Adrian Andrew, Councillor Patrick Harley and Councillor Bob Sleigh declared personal interests in this item due to their membership of the West Midlands Growth Company Board.]

The minutes were noted.

The board considered the minutes of the Investment Board held on 22 July 2024.

Resolved:

The minutes of the meeting held on 22 July 2024 be noted.

The minutes were noted.

The board considered the minutes of the Investment Board held on 19 August 2024.

Resolved:

The minutes of the meeting held on 19 August 2024 be noted.

Friday 13 December 2024 at 12.00pm.

Friday 13 December 2024 at 12.00pm.

The minutes were noted.

The board considered the minutes of the Overview & Scrutiny Committee held on 2 September 2024.

Resolved:

The minutes of the meeting held on 2 September 2024 be noted.

The minutes were noted.

The board considered the minutes of the Transport Delivery Overview & Scrutiny Committee held on 9 September 2024.

Resolved:

The minutes of the meeting held on 9 September 2024 be noted.

The minutes were noted.

The board considered the minutes of the Investment Board held on 16 September 2024.

Resolved:

The minutes of the meeting held on 16 September 2024 be noted.

The minutes were noted.

The board considered the minutes of the Audit, Risk & Assurance Committee held on 30 September 2024.

Resolved:

The minutes of the meeting held on 30 September 2024 be noted.

The minutes were noted.

The board considered the minutes of the joint Overview & Scrutiny Committee and the Transport Delivery Overview & Scrutiny Committee held on 21 October 2024.

Resolved:

The minutes of the meeting held on 21 October 2024 be noted.

The minutes were noted.

The board considered the minutes of the Transport Delivery Overview & Scrutiny Committee held on 4 November 2024.

Resolved:

The minutes of the meeting held on 4 November 2024 be noted.

The forward plan of items to be considered at future meetings of the board was noted.