Agenda item

Matthew Hammond explained the purpose and role of the West Midlands Growth Company and advised that the funding model detailed in the report had been discussed with the Chief Executives and Finance Directors of the West Midlands Metropolitan Authorities and the West Midlands Combined Authority. Neil Rami presented a report which set out a request for funding of £1.8 million per year for a period of two years from the Investment programme to secure the repositioning and investment in the West Midlands Growth Company.

Matthew Hammond, Neil Rani and Roger Mendonca responded to questions from members of the Board relating to the financial position and solvency of the West Midlands Growth Company, the liability of individual Directors / Members of the Board of the Company in the event that it was trading whilst insolvent and/or became insolvent, the treatment of outstanding debt (especially to Birmingham City Council), treatment of pension liabilities, the costs associated in winding up the Company and responsibility for such costs, the position if the Company was not self sufficient by 2021, the needs of individual local authorities and the steps being taken to identify such needs and opportunities for shared services with local authorities. Sean Pearce and Tim Martin confirmed the position with the ability of the Investment Programme to provide revenue funding and the financial liabilities of individual Directors / Members of the Board of the Company respectively.

Resolved:

1.    That the Investment Case developed by the West Midlands Growth Company Executive Board and Board be noted;

2.    That the Investment Programme Assurance Framework be not applied to this Investment; f

3.    That delegated authority be granted to the Regeneration Directors of the West Midlands Metropolitan authorities and the West Midlands Combined Authority working with the Universities, to develop and sign off the West Midlands Growth Company Business Plan before final sign-off by the West Midlands Growth Company Board;

4.    That the allocation of £1.8 million from the Investment Programme for the West Midlands Growth Company for a period of two years covering the financial years 2019/20 and 2020/21 to support the repositioning and investment in the West Midlands Growth Company be approved. (This was included in the West Midlands Growth Company investment Case as Option 2);

5.    That the review of future funding based on performance during 2019/20 be approved;

6.    That the Regional Chief Executives be requested, supported by their Finance Directors, to agree with the West Midlands Growth Company a plan by the start of the 2019/20 Financial Year for the West Midlands Growth Company to replace this funding in year three with other income streams to enable the West Midlands Growth Company to be self-sufficient;

7.    That delegated authority be granted to the Regional Chief Executives the development and agreement of a set of Key Performance Indicators with the West Midlands Growth Company Board to demonstrate the delivery of the outputs forecast in the Investment Case;

8.    That the Investment Board’s Forward Plan include a twice yearly update from the West Midlands Growth Company Board on the delivery of outcomes and outputs;

9.    That delegated authority be granted to the Regional Chief Executives any activities required to finalise the agreement of the Investment Case with the Board of the West Midlands Growth Company.