Presented By:Pip Abercromby/ Katie Trout
Decision:
(1) The business justification case in light of the ongoing review of the West Midlands Growth Company was noted.
(2) It was noted that the objectives, outcomes and benefits set out in the business justification case were subject to change.
(3) The £4m proposal for submission to the WMCA Board, for the period 1 April 2023 to 31 March 2024 to the West Midlands Growth Company, was endorsed, comprising the following three income streams:
(i) £0.7m from the WMCA’s core budget;
(ii) £1.6m from the UK Shared Prosperity Fund, subject to the approval of the WMCA’s investment plan proposal by the Department for Levelling Up, Housing & Communities and a confirmation of the total allocation;
(iii) £1.7m contribution from the Commonwealth Games residual contingency funding, subject to the confirmation of the total allocation from the Government.
Minutes:
The board considered a report from the Director of Policy & Partnerships, West Midlands Growth Company providing a business justification case for funding the West Midlands Growth Company to enable it to establish itself as a going concern by 31 December 2022.
A verbal update was provided before the item was considered. This amended the recommendations set out in the report insofar as it removed the underwrite expressed in recommendation (3)c within the report and was reflected in these minutes under the noted resolution.
At its meeting on 13 May 2022, the Economic Growth Board indicated its support in principle that the West Midlands required activity from the West Midlands Growth Company similar in scope and scale to the Business & Tourism Programme going forward. The board subsequently initiated a detailed options review for the growth company to consider its priority functions, governance arrangements and longer term sustainable funding. The review was due to conclude with a report to the WMCA Board on 10 February 2023. Whilst this review was ongoing, as a company limited by guarantee it was required to establish that it was a going concern (ie. capable of meeting its financial obligations) for the next financial year in the submission of its statutory accounts, which had to be filed by 31 December 2022. The report proposed a means by which this could be established.
Councillor Mike Bird stressed the importance of the West Midlands Growth Company being able to demonstrate the value it brought to the region and how it added to work already being undertaken by the WMCA and its constituent member authorities. It was necessary for greater performance data to be made available to demonstrate how it delivered benefit to each district within the region. The Director of Policy & Partnerships welcomed the forthcoming governance review that was to be undertaken, and recognised that the growth company needed to be more transparent in its reporting, especially to the Economic Growth Board. She also considered refreshed performance indicators would help to better demonstrate the benefits of the work of the growth company. Nick Abell welcomed the undertaking of a governance review, stressing the importance of good governance underpinning the work of the West Midlands Growth Company.
Resolved:
(1) The business justification case in light of the on-going review of the West Midlands Growth Company be noted.
(2) It be noted that the objectives, outcomes and benefits set out in the business justification case were subject to change.
(3) The £4m proposal for submission to the WMCA Board, for the period 1 April 2023 to 31 March 2024 to the West Midlands Growth Company, be endorsed, comprising the following three income streams:
(i) £700,000 from the WMCA’s core budget;
(ii) £1.6m from the UK Shared Prosperity Fund, subject to the approval of the WMCA’s investment plan proposal by the Department for Levelling Up, Housing & Communities and a confirmation of the total allocation;
(iii) £1.7m contribution from the Commonwealth Games residual contingency funding, subject to the confirmation of the total allocation from the Government.
[NB. In accordance with paragraph 18.12 of the constitution, Councillor Mike Bird requested that it be recorded that he voted against these resolutions.]