Agenda item

(1)      The terms of reference of the review of the West Midlands Growth Company, initiated by the Economic Growth Board on 23 September 2022, were noted, including that the findings of the review would be reported to the WMCA Board on 10 February 2023 to support and agree activity to be undertaken by the West Midlands Growth Company in relation to the decision over funding for 2023/24 made at this meeting.

(2)      An agreement to provide £4m of funding for the period 1 April 2023 to 31 March 2024 to the West Midlands Growth Company, following the approval of the business case by the Investment Board on 12 December 2022 was approved, the funding to be provided through paying the agreed service level agreement fee in return for the West Midlands Growth Company fulfilling its contractual obligations to the WMCA for various services and the £4m funding being comprised of three income streams, namely:

(i)       £700,000 from the WMCA core budget;

(ii)       £1.6m from the UK Shared Prosperity Fund;

(iii)      £1.7m contribution from securing a share of the Commonwealth Games Legacy Funds;

and all funding being directed through the WMCA and then paid to the West Midlands Growth Company as part of a single commissioning process.

(3)      It was noted that the WMCA received notification from the Government on 5 December 2022 that its UK Shared Prosperity Fund Investment Plan had been approved, along with the confirmation of funding for 2022/23 and indicative allocations for 2023/24 and 2024/25, with further details expected ahead of the WMCA Board meeting on 10 February 2023.

(4)      It was noted that the £1.7m Commonwealth Games Legacy Fund contribution was part of an overall larger package of funding that the West Midlands Growth Company hoped to secure from the legacy fund under item 7, and it was noted that the formal confirmation letter of receipt of funding was still awaited by the WMCA from the Government.

The board considered a report from the Executive Director of Economic Delivery, Skills & Communities providing an interim update on the progress of the review of the West Midlands Growth Company.

At its meeting on 23 September 2022, the Economic Growth Board agreed to initiate a detailed options review of the West Midlands Growth Company to identify and secure funding to deliver agreed priorities. In doing so, this would take forward the recommendations of the West Midlands Business Support review, which would ensure the West Midlands Growth Company was fully embedded into the business support ecosystem, removing any duplication and ensuring activities were streamlined with appropriate governance and accountability.

Councillor Ian Ward considered that the ‘project sponsors’ of the review should be broadened to include a wider representation to ensure that all key stakeholders considered that they were able to give direction to the review. The Chair accepted this suggestion, and indicated that the terms of reference for the review should be considered again by the Economic Growth Board in order to address the concerns being expressed by Councillor Ian Ward.

Councillor Mike Bird stressed the importance of ensuring that a properly independent review was undertaken that was able to assess how the West Midlands Growth Company undertook its activities. He also considered that improvements were needed to the reporting back on growth company activity to ensure that local authorities were more clearly sighted.

The Chief Executive, West Midlands Growth Company welcomed these comments and stressed the importance of each local authority, during the course of the review, making clear what its priorities for the growth company were. He also gave his support to improving the accountability of the growth company to ensure that all funding partners felt involved in its work.

Resolved:

(1)      The terms of reference of the review of the West Midlands Growth Company, initiated by the Economic Growth Board on 23 September 2022, be noted, including that the findings of the review would be reported to the WMCA Board on 10 February 2023 to support and agree activity to be undertaken by the West Midlands Growth Company in relation to the decision over funding for 2023/24 made at this meeting.

(2)      An agreement to provide £4m of funding for the period 1 April 2023 to 31 March 2024 to the West Midlands Growth Company, following the approval of the business case by the Investment Board on 12 December 2022, be approved, with the funding to be provided through paying the agreed service level agreement fee in return for the West Midlands Growth Company fulfilling its contractual obligations to the WMCA for various services and the £4m funding being comprised of three income streams, namely:

(i)       £700,000 from the WMCA core budget;

(ii)       £1.6m from the UK Shared Prosperity Fund;

(iii)      £1.7m contribution from securing a share of the Commonwealth Games Legacy Funds;

and all funding being directed through the WMCA and then paid to the West Midlands Growth Company as part of a single commissioning process.

(3)      It be noted that the WMCA received notification from the Government on 5 December 2022 that its UK Shared Prosperity Fund Investment Plan had been approved, along with the confirmation of funding for 2022/23 and indicative allocations for 2023/24 and 2024/25, with further details expected ahead of the WMCA Board meeting on 10 February 2023.

(4)      It be noted that the £1.7m Commonwealth Games Legacy Fund contribution was part of an overall larger package of funding that the West Midlands Growth Company hoped to secure from the legacy fund under minute no. 70 below, and it was noted that the formal confirmation letter of receipt of funding was still awaited by the WMCA from the Government.

[NB. Councillor Ian Brookfield, Councillor Patrick Harley and Councillor Ian Ward all declared personal interests in this item due them being members of the board of the West Midlands Growth Company. However, under s31 of the Localism Act 2011, the Monitoring Officer granted a dispensation to allow the councillors to debate and vote on this item.]