Agenda item

(1)      The findings of the review and the range of functions the West Midlands Growth Company could undertake were noted.

(2)      The proposed West Midlands Growth Company Ltd operating budget for the next two years was noted as building upon the one-year commitment of £4m of funding for 2023/24 approved by the WMCA Board at its meeting on 16 December 2022.

(3)      It was noted that the geographical footprint of the West Midlands Growth Company post the integration of Local Enterprise Partnership functions to the WMCA needed to be resolved and that the recommendations would be brought forward as soon as possible, to include clarifying the future relationship with Warwickshire.

(4)      The ongoing work required to attain long-term financial sustainability from April 2025, and the need to clarify roles and responsibilities and handovers across programmes of activity across the West Midlands Growth Company, the WMCA, local authorities and other partners, was noted.

(5)      It was agreed that the current funding envelope for the West Midlands Growth Company of £12m should be consolidated going forward and that West Midlands Growth Company activity should be re-focused to meet regional and local priorities ie. scenario 5 of the six scenarios for the future model of the West Midlands Growth Company that had been consulted upon.

(6)      It was agreed that the West Midlands Growth Company should continue to undertake the functions as set out within the report, and that the balance of activity across them should be determined by regional and local priorities.

(7)      It was agreed that the West Midlands Growth Company should undertake the additional role of Strategic Relationship Management if budget levels were broadly maintained at their current level and that the West Midlands Growth Company should work closely with local authorities and the WMCA to deliver this function.

(8)      The detailed work being undertaken with local authorities and with the WMCA to determine local and regional priorities, and that these were being used to inform the proposal for additional Commonwealth Games Legacy Enhancement Funding and would ultimately inform the West Midlands Growth Company’s Business Plan, was noted.

(9)      The progress in developing a framework of Objectives & Key Results was noted, and the further work that was being undertaken to determine thematic objectives, deliverables and specific leading and lagging indicators was noted.

(10)    It was noted that a proposal for £10m from the Commonwealth Games Legacy Enhancement Fund to support the Global West Midlands Investment & Tourism Programme over the next two years would be considered at item no. 8 below and, if successful, would enable the West Midlands Growth Company to have an overall budget of £10.15m in 2023/24 and £11.65m in 2024/25 ie. broadly realising the ambitions of ‘scenario 5’.

(11)    It was noted that the West Midlands Growth Company would achieve efficiency savings amounting to a 10% - 15% reduction in the regional workforce/third-party costs over the course of the year on the core activities.

(12)    It was agreed that identification of long-term sustainable funding for the West Midlands Growth Company, to support the consolidation of the West Midlands Growth Company budget at £12m, was returned to in early 2023/24 and that recommendations were to be brought forward to the Economic Growth Board for consideration and then on to the WMCA Board in due course.

(13)    Proposed changes to membership of the West Midlands Growth Company Board, were endorsed, specifically that the board should be expanded so that each local authority was represented on it, and that private sector membership should be reviewed when terms of office came to an end to ensure directors had the right suite of skills and experiences aligned to the West Midlands Growth Company’s future focus, noting that these changes would be for West Midlands Growth Company Ltd to formally agree and to enact.

(14)    It was agreed that from 2023/24, the Economic Growth Board should agree the West Midlands Growth Company's annual business plan, including its objectives and key results and that it should receive quarterly performance reports on progress from the West Midlands Growth Company.

(15)    Proposals to strengthen engagement with the local authorities and the WMCA at political and officer levels were approved, and it was agreed that partners would identify named senior officers and councillors by correspondence with the West Midlands Growth Company.

The board considered a report of the Director of Policy & Partnerships, West Midlands Growth Company on the findings of the review into the company, outlining feedback from consultations into its future model, setting out recommendations in a number of areas and highlighting issues where further work was required.

At its meeting on 23 September 2022, the Economic Growth Board commissioned a review of the West Midlands Growth Company’s functions, funding and governance with the purpose of making recommendations on its future scope, scale and sustainable funding of activity. The review was overseen by a Sponsors Group of the Economic Growth Board Chair, Mayor and Chair of the West Midlands Growth Company. It was led by a leadership team of the WMCA’s Chief Executive, Chief Executive of the City of Wolverhampton Council and Chief Executive of growth company. The findings of the review and the emerging feedback from the consultation were considered by the Economic Growth Board on 17 February.

Councillor Stephen Simkins welcomed the review but stressed the need for local authorities to be active partners in the activity of the growth company to ensure they maximised the benefit received from it. Councillor Izzi Seccombe noted that Warwickshire already participated in a successful growth company but undertook to discuss the relationship it might have with the West Midlands Growth Company. The Chief Executive of the West Midlands Growth Company stressed that he had listened to the concerns previously expressed regarding accountability and delivery and he hoped the recommendations arising out of the review addressed these concerns.

Resolved:

(1)      The findings of the review and the range of functions the West Midlands Growth Company could undertake be noted.

(2)      The proposed West Midlands Growth Company Ltd operating budget for the next two years be noted as building upon the one-year commitment of £4m of funding for 2023/24 approved by the WMCA Board at its meeting on 16 December 2022.

(3)      It be noted that the geographical footprint of the West Midlands Growth Company post the integration of Local Enterprise Partnership functions to the WMCA needed to be resolved and that the recommendations would be brought forward as soon as possible, to include clarifying the future relationship with Warwickshire.

(4)      The ongoing work required to attain long-term financial sustainability from April 2025, and the need to clarify roles and responsibilities and handovers across programmes of activity across the West Midlands Growth Company, the WMCA, local authorities and other partners, be noted.

(5)      It be agreed that the current funding envelope for the West Midlands Growth Company of £12m should be consolidated going forward and that West Midlands Growth Company activity should be re-focused to meet regional and local priorities ie. scenario 5 of the six scenarios for the future model of the West Midlands Growth Company that had been consulted upon.

(6)      It be agreed that the West Midlands Growth Company should continue to undertake the functions as set out within the report, and that the balance of activity across them should be determined by regional and local priorities.

(7)      It be agreed that the West Midlands Growth Company should undertake the additional role of Strategic Relationship Management if budget levels were broadly maintained at their current level and that the West Midlands Growth Company should work closely with local authorities and the WMCA to deliver this function.

(8)      The detailed work being undertaken with local authorities and with the WMCA to determine local and regional priorities, and that these were being used to inform the proposal for additional Commonwealth Games Legacy Enhancement Funding and would ultimately inform the West Midlands Growth Company’s Business Plan, be noted.

(9)      The progress in developing a framework of Objectives & Key Results be noted, and the further work that was being undertaken to determine thematic objectives, deliverables and specific leading and lagging indicators be noted.

(10)    It be noted that a proposal for £10m from the Commonwealth Games Legacy Enhancement Fund to support the Global West Midlands Investment & Tourism Programme over the next two years would be considered at item no. 8 below and, if successful, would enable the West Midlands Growth Company to have an overall budget of £10.15m in 2023/24 and £11.65m in 2024/25 ie. broadly realising the ambitions of ‘scenario 5’.

(11)    It be noted that the West Midlands Growth Company would achieve efficiency savings amounting to a 10% - 15% reduction in the regional workforce/third-party costs over the course of the year on the core activities.

(12)    It be agreed that identification of long-term sustainable funding for the West Midlands Growth Company, to support the consolidation of the West Midlands Growth Company budget at £12m, be returned to in early 2023/24 and that recommendations were to be brought forward to the Economic Growth Board for consideration and then on to the WMCA Board in due course.

(13)    Proposed changes to membership of the West Midlands Growth Company Board, be endorsed, specifically that the board should be expanded so that each local authority was represented on it, and that private sector membership should be reviewed when terms of office came to an end to ensure directors had the right suite of skills and experiences aligned to the West Midlands Growth Company’s future focus, noting that these changes would be for West Midlands Growth Company Ltd to formally agree and to enact.

(14)    It be agreed that from 2023/24, the Economic Growth Board should agree the West Midlands Growth Company's annual business plan, including its objectives and key results and that it should receive quarterly performance reports on progress from the West Midlands Growth Company.

(15)    Proposals to strengthen engagement with the local authorities and the WMCA at political and officer levels be approved, and it be agreed that partners would identify named senior officers and councillors by correspondence with the West Midlands Growth Company.