Agenda Item No. 9

 

The Vale of Glamorgan Council

 

Environment and Regeneration Scrutiny Committee: 12th July, 2018

 

Report of the Managing Director

 

Cardiff Capital Region City Deal - Proposed Establishment of Joint Overview and Scrutiny Committee

 

Purpose of the Report

  1. The purpose of the report is to update Members on proposals to establish a Joint Overview and Scrutiny Committee (JOSC) for the Cardiff Capital Region City Deal (CCRCD).
  2. The report further seeks to nominate and recommend to Council the Chairman of this Scrutiny Committee and a deputy to represent this Authority on the CCRCD JOSC.

Recommendations

That the Scrutiny Committee:

  1. Considers the report and appendices and recommends to Council the establishment of a Joint Overview and Scrutiny Committee (JOSC) for the Cardiff Capital Region City Deal (CCRCD) with the Terms of Reference as contained within;
  2. Recommends to Council the Chairman of the Scrutiny Committee Environment and Regeneration to represent the Vale of Glamorgan Council  on the CCRCD JOSC, taking into consideration paragraph 2.3 of Appendix B to the report;
  3. Recommends to Council a nominated deputy to represent the Council in the absence of the Chairman of the Scrutiny Committee Environment and Regeneration: and ;
  4. Notes that it will be a decision for each of the ten constituent Authorities if it wishes to establish the proposed JOSC.

Reason for the Recommendations

(1-4)    To allow the mechanism for creation of the Joint Overview and Scrutiny Committee and to secure representation on that Committee.

Background

  1. In 2015, each of the ten constituent Authorities in South East Wales agreed to work towards developing proposals for a Cardiff Capital Region City Deal.  A report was presented to Cabinet on 27th July, 2015 (minute C2873 refers) which provided information on the concept of City Deals and outlined the work undertaken up until then on a potential City Deal.  At that meeting it was resolved (in summary) that this Council contributes to work on an initial business case for a City Deal and that a contribution of circa £42.5k be provided from the Policy Budget to progress the business case.
  2. On 15th March, 2016, each of the ten constituent Council Leaders in South East Wales, the First Minister, the Welsh Government Minister for Finance and Government Business, the Secretary of State for Wales and the Chief Secretary to the Treasury signed the Cardiff Capital Regional City Deal Heads of Terms Agreement.  This represented a significant step in working towards a City Deal for South East Wales.  This agreement was the subject of a report to this Council's Cabinet on 22nd February, 2016 and in summary Cabinet resolved that the Leader be authorised to sign an 'in principle' City Deal document and that further work be undertaken with constituent Authorities, the UK and Welsh Government to progress further the City Deal (Cabinet Minute C3088 refers).  Council, on 2nd March, 2016, resolved to approve the proposals as set out in the Cabinet Report.
  3. The City Deal Heads of Terms Agreement included:
  • £1.229 billion investment in the Cardiff Capital Region's infrastructure - with a key priority for investment being the delivery of the South East Wales Metro, including the Valley Lines Electrification programme.
  • Connecting the region - with the creation of a new non-statutory Regional Transport Authority to co-ordinate transport planning and investment, in partnership with the Welsh Government.
  • Support for innovation and improving the digital network - to develop capabilities in Compound Semiconductor Applications.
  • Developing a skilled workforce and tackling unemployment - with the creation of a Cardiff Capital Region Skills and Employment Board to ensure skills and employment provision is responsive to the needs of local businesses and communities. 
  • Supporting enterprise and business growth - through the creation of a Cardiff Capital Region Business Organisation to ensure that there is a single voice for business to work with Local Authority Leaders.
  • Housing development and regeneration.  The Welsh Government and the Cardiff Capital Region commit to a new partnership approach to strategic planning.  This will ensure the delivery of sustainable communities, through the use and re-use of property and site.
  1. A small number of key targets are set out in the Heads of Terms Agreement to ensure that the right investments are made to secure significant economic growth.  Such targets include the creation of 25,000 new jobs by 2036 and the leveraging of an additional £4 billion of private sector investment as a result of the £1.229 billion public sector investment that makes up the City Deal.
  2. The Heads of Terms Agreement in addition established a governance model in line with the below principles in that it:
  • "Complies with the existing statutory framework that exists in Wales to deliver the City Deal proposals;
  • Strengthens and streamlines the existing governance and partnership arrangements across the Capital Region;
  • Improves business involvement in local decision making;
  • Provides confidence and assurance to both the UK and Welsh Governments that Local Authority Leaders are making collective decisions which will serve to drive economic growth across the Capital Region; and
  • Enables Local Authorities to explore with Welsh Government alternative governance arrangements in the medium term."
  1. Linked to the above, the Heads of Terms Agreement also set out arrangements for the establishment of a Capital Region Cabinet which will comprise the 10 participant Authorities and provide the basis for initial decision making regarding the Investment Fund.  The Heads of Terms Agreement states that the Cardiff Capital Region Cabinet will be responsible for:
  • Management of the Cardiff Capital Region Investment Fund;
  • Additional devolved funding provided to the Capital Region;
  • The Cardiff Capital Region Transport  Authority;
  • Contracting with Transport for Wales on prioritised Metro projects;
  • Control over devolved business rate income above an agreed growth forecast, subject to Welsh Government agreement;
  • Strategic planning including housing, transport planning and land use;
  • Influencing skills and wordlessness programmes;
  • An Inward investment and marketing strategy; and
  • Considering the scope for strengthening Capital Region governance further.
  1. Since the signing of the Heads of Terms Agreement on 15th March, 2016, the ten Authorities have been progressing work, in partnership with the Welsh and UK Governments to establish the necessary governance arrangements required to release the £1.229 billion investment fund.
  2. Having regard to the commitments as outlined in the Heads of Terms Agreement, much of the recent work has focused on the development of necessary governance arrangements. As a result and following the signing of the Heads of Terms Agreement in March 2016, a Shadow Cabinet was established for the Cardiff Capital Region in Summer of 2016, comprising the 10 Leaders of the participating Local Authorities.  This Shadow Cabinet has provided interim governance and momentum to taking matters forward.  Alongside this, a Project Management Office has been established consisting of a Programme Director and Project Manager.  This office has been responsible in supporting Officers and the Shadow Cabinet in taking forward and developing key elements of the City Deal.
  3. The Council, at the meeting held on 9th February, 2017, subsequently approved the Joint Working Agreement (JWA) as the legal document that formally establishes the Cardiff Capital Region (CCR) Joint Committee (the Regional Cabinet) as a Joint Committee, with delegated functions, with a commencement date of 1st March, 2017.  At the same meeting Council approved that the elected Member representative to the Regional Cabinet shall be the Leader of the Council, with the Deputy Leader as a nominated Deputy.

Relevant Issues and Options

  1. It was initially proposed that scrutiny would be undertaken by Councils' existing Scrutiny Committees but it has subsequently been agreed that the Councils would work together to create a new City Deal Joint Overview and Scrutiny Committee.  It is anticipated that Scrutiny would be involved in monitoring the performance and governance of the City Deal on an ongoing basis; but it would be a matter for the Scrutiny Committee to determine what areas it wishes to scrutinise.
  2. At its meeting held on the 20th November, 2017, the CCRCD Joint Cabinet received a report detailing proposals for the establishment of a JOSC to consider the CCRCD.  This report also set out the draft Terms of Reference (TOR) for the Joint Committee. The Regional Joint Cabinet report and draft TOR are attached at Appendices A and A1 for information.
  3. The report also proposed that one of the ten constituent Authorities host the CCRCD Joint Overview and Scrutiny Committee and provides such dedicated support and advisers as appropriate.  With the agreement of the CCRCD Joint Cabinet, Bridgend County Borough Council agreed to be the Host Authority for scrutiny support for the JOSC.
  4. Given the work that has been undertaken in recent months by officers, all ten participating Councils are now in a position to consider matters relating to the governance of the Cardiff Capital Region City Deal in relation to the establishment of a JOSC.
  5. Attached at Appendix B is a brief paper that provides background and information on the origins of the proposal for a JOSC and how it would be established over the first year.
  6. In accordance with Statutory Guidance issued under the Local Government (Wales) Measure 2011, when establishing a JOSC, a report containing details of the proposal should be considered by each of the participating Authorities' appropriate Scrutiny Committees (or sub-committees) before being endorsed by Full Council.
  7. It is for this reason that this report is being presented to the Scrutiny Committee prior to it being submitted to Council for formal approval. 
  8. During the first year of the JOSC there will be a need for Members and Scrutiny Officers to attend training and briefing sessions prior to them undertaking scrutiny of the CCRCD.  This will help ensure that all Members have the same knowledge base and understanding from which to start.  However, it may mean that there is a limited amount of scrutiny work undertaken in the first year.  The training and briefing sessions will be organised by the JOSC Host Authority, Bridgend County Borough Council.
  9. Following training and briefing sessions, it is proposed that two meetings be held within the first year as follows:
  • Meeting One
  • To amend and finalise the JOSC Terms of Reference and officially adopt and take ownership of them (subject to any proposed changes);
  • To have initial discussions regarding the Forward Work Programme.
  • Meeting Two
  • To develop in detail their Forward Work Programme and future focus;
  • To undertake annual monitoring of the CCRCD Business Plan and / or Programme Plan.
  1. The JOSC will use the first year to develop a detailed and informed Forward Work Programme, which will not only focus their work but also assist greatly in determining the workload and needs for the future, including the number of meetings and future budget required.
  2. The draft Terms of Reference also enable any member of the JOSC to refer to the Committee any matter which is relevant to its functions provided it is not a local crime and disorder matter, as defined in Section 19 of the Police and Justice Act 2006, and subject to a number of conditions and provisos. 
  3. In all instances, the JOSC has the power to make any reports and recommendations to the Regional Cabinet and / or to any of the Appointing Authorities and to any of their Executives in respect of any function that has been delegated to the Regional Cabinet pursuant to the Joint Working Agreement.

Resource Implications (Financial and Employment)

  1. As the Joint Cabinet report states, the 2017/18 Joint Cabinet Budget contains a contingency budget in the sum of £69,500, an element of which has been set aside to meet the cost of developing the JOSC.  Based on initial estimates provided for the first year, it was agreed that an amount of £25,000 would be allocated to the Host Authority to carry out the Joint Scrutiny role.  From 2018/19 the budget headings will be realigned to separately identify the pre-determined sum from the remaining contingency budget.  The representatives appointed to the JOSC will be able to claim normal expenses for attendance at joint meetings.

Sustainability and Climate Change Implications

  1. Progress on the City Deal links with the sustainable development principle under the duties of the Well Being of Future Generations (Wales) Act 2015.  The City Deal will allow for an integrated approach to service delivery and economic development across the region, being an excellent example of collaborative working. The Joint Committee will need to look to the long term over the 20 year City Deal time frame.  The details in the body of this report also indicate that partner organisations will be at the heart of decision making, being able to influence opportunities for strategic investment and intervention.  In summary, the Cardiff Capital Region City Deal provides for an excellent opportunity for the 10 Local Authorities to work together in addressing the seven Welsh Government Well Being goals.

Legal Implications (to Include Human Rights Implications)

  1. The statutory power to establish a JOSC is set out in Section 58 of the Local Government (Wales) Measure 2011 and Regulations made thereunder. 
  2. Statutory Guidance from the Local Government (Wales) Measure 2011 Section 58 Joint Overview and Scrutiny Committees paragraph 3.5  advises " In order to ensure JOSC's represent fairly the interests of each appointing local authority, it is recommended that an equal number of committee seats be allocated to each of the participating  councils. Although that would mean larger authorities agreeing to have the same membership as smaller ones, this would appear to be in the best interests of effective partnership."  Paragraph 3.6  states  " that Councils will need to make attempts to ensure that member representation on JOSCs reflects the political balance represented in the relevant Scrutiny Committee so far as practicable.".

Crime and Disorder Implications

  1. None as a direct result of this report.

Equal Opportunities Implications (to include Welsh Language issues)

  1. A Wellbeing and Equalities Assessment was undertaken for the CCRCD Joint Working Agreement Business Plan and reported to Cabinet 19th March 2018. 
  2. The JOSC does not require a further separate Equalities Impact Assessment as the setting up of the JOSC is reflected in the Joint Working Agreement (JWA) and the Local Government (Wales)  Measure 2011 which made changes intended to strengthen the structures and workings of Local Government in Wales..    

Corporate/Service Objectives

  1. The City Deal proposal is included in the Council's Corporate Plan and links to Wellbeing Outcome 2 - An environmentally responsible and prosperous Vale.  Objective 3 - Promoting regeneration, economic growth and employment includes an action to maximise economic growth, inward investment and employment opportunities through the Cardiff Capital Region.  A further action in relation to Objective 3 relates to the delivery of transport improvements associated with the Cardiff Capital Region and Metro schemes.

Policy Framework and Budget

  1. This is a matter outside of the Policy Framework and Budget and is a matter for Council.

Consultation (including Ward Member Consultation)

  1. As this matter relates to a Vale of Glamorgan wide issue and not specific wards, there has been no specific ward member consultation.

Relevant Scrutiny Committee

  1. Environment and Regeneration.

Background Papers

Contact Officer

Jeff Rees - Operational Manager, Democratic Services

Officers Consulted

Managing Director

Monitoring Officer / Section 151 Officer

Responsible Officer:

Rob Thomas, Managing Director