Agenda item

The board considered a report of the Director of Policy & Partnerships, West Midlands Growth Company that provided an update on progress of the review of the West Midlands Growth Company (WMGC) that set out emerging feedback from the consultation process into the future model of the Company, highlighting areas where there is consensus and recommendations can be made and where further discussion and/or work is required.

The Chief Executive, City of Wolverhampton Council, Tim Johnson, presented the report, highlighting key aspects including the outcomes of the review to date, the next phase of the review, the preferred scenario for WMGC’s future model, local and regional priorities, funding and proposed governance changes. 

He advised that the review had been undertaken in consultation with local authorities to understand their priorities from a place perspective and that consultation would continue to be embedded into the work of WMGC. Governance changes would also allow each local authority to be represented on WMGC’s board with structured engagement undertaken on a quarterly basis and would be aligned with the Economic Growth Board. Additionally, private sector membership would also be reviewed.

Councillor Hughes expressed concern that the review had not been done independently and sought clarification as to the financial asks for WMGC, noting that he not received an evaluation of the Business and Tourism Programme.

The Director of Policy & Partnerships, WMGC, Katie Trout advised that in relation to funding, an additional £4.6m of Legacy Funding was being sought for 2023/24 and £6.1m in 2024/25 giving a total ask of £10.7m over the 2 years.

With regards to the Business and Tourism Programme, she advised that a full evaluation of the programme has not yet been carried out, however, reporting was undertaken on quarterly basis and could confirm targets were being met and was happy to share the latest quarterly report.

The Vice-Chair, Councillor Courts and Councillor Ward considered the Growth Company was crucial importance to the region which needed some form of marketing organisation and for all local authorities to have a relationship with WMGC.

Councillor Andrew welcomed the opportunity for the relationship to be re-set with WMGC as a result of Sandwell and Walsall becoming members of the WMGC Board.

Matthew Hammond (WMGC) expressed his thanks and best wishes to the Chair, Councillor Brookfield, and reminded the board the interim funding arrangements utilising Legacy Funding was a short-term fix and there was a need to reflect on the medium-term for a properly funded Growth Company.

It be recommended to the WMCA Board that:

1.    Progress on the Review to date be noted;

2.    The preferred scenario as identified by the Sponsors Group which would see the current funding envelope for WMGC consolidated as £12m with activity refocused to meet regional and local priorities be endorsed and further consultation be undertaken with the aim of bringing a recommendation to the Mayor and Met Leaders meeting on 3 March 2023 for discussion ahead of the WMCA Board on 17 March 2023 be noted;

3.    WMGC should continue to undertake the functions as set out in paragraph 6.8 of the report and the balance of activity across them should be determined by regional and local priorities be agreed;

4.    WMGC should undertake the additional role of Strategic Relationship Management if budget levels are broadly maintained at their current level and WMDC should work closely with local authorities to deliver this function be agreed;

5.    The geographical footprint of WMGC post LEP integration needs to be resolved and that recommendations be brought as soon as possible to include clarifying the future relationship with Warwickshire be noted;

6.    The detailed work being undertaken with Local Authorities with the WMCA to determine local and regional priorities and these are being used to inform the proposal for additional Legacy Funding and this ultimately informs the WMGC’s Business Plan be noted;

7.    The progress in developing a framework of objectives and key results and further work is being undertaken to determine thematic objectives, deliverables and specific leading and lagging indicators be noted;

8.    WMGC has submitted a proposal for an additional £10.7m from the Legacy Fund to fund the Global West Midlands Investment and Tourism Programme over the next two years and this be considered as a separate item on the agenda be noted;

9.    WMGC would achieve efficiency savings amounting to 10%-15% reduction in the regional workforce/3^rd party costs over the course of the year on the core activities be noted;

10. The identification of long-term sustainable funding for WMGC, to support the scenario agreed by WMCA Board in March, is returned to in early 2023/24 and recommendations be brought forward to the Economic Growth Board for consideration in due course be agreed;

11. The proposed changes to membership of the WMGC Board, specifically; that the board should be expanded so that every local authority is represented on it and that private sector membership should be reviewed when terms of office come to an end to ensure Directors have the right suite of skills and experiences aligned to WMGC’s future focus, noting these changes would be for WMGC Ltd to enact be endorsed;12.From 2023/24 Economic Growth Board should agree WMGC’s annual business plan including its objectives and key results and that it should receive quarterly performance reports on it from WMGC be agreed;

12. Proposals to strengthen engagement with the Local Authorities and WMCA at political and officer levels and that partners identify named senior officers and councillors by correspondence with WMGC be approved and

13.The ongoing work to clarify roles and responsibilities and handovers across programmes of activity, across WMGC, WMCA and Local Authorities be noted.

[NB. Tom Westley, Councillor Ian Ward and Matthew Hammond declared a non-pecuniary interest in this item due to them being board members of the West Midlands Growth Company]