Agenda Item No. 3

 

THE VALE OF GLAMORGAN COUNCIL

 

COUNCIL MEETING: 28 MARCH 2018

 

REFERENCE FROM CABINET:  19 MARCH 2018

 

C256              CARDIFF CAPITAL REGION CITY DEAL -  JOINT WORKING AGREEMENT BUSINESS PLAN (L) (SCRUTINY COMMITTEE – ENVIRONMENT AND REGENERATION) -

 

Cabinet was asked to consider the Joint Working Agreement Business Plan (JWA Business Plan) attached, as recommended by the Cardiff Capital Region Cabinet. 

 

If Cabinet agreed the content of the report and the JWA Business Plan, the matter would be referred to the next Council meeting for consideration and, if agreed, adopted as the formal JWA Business Plan.

 

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 27 July, 2015 (Minute C2873 refers) which provided information on the concept of City Deal and outlined the work undertaken up until then on a potential City Deal. At that meeting it was resolved (in summary) that this Council contributed 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.

 

On 15 March, 2016, each of the ten constituent 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 Region City Deal Heads of Terms Agreement. This represented a significant step in working towards a City Deal for South East Wales. The agreement was the subject of a report to the Council's Cabinet on 22 February, 2016 (Minute C3088 refers) 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 United Kingdom Government and Welsh Government to progress further the City Deal. Council on 2 March, 2016 resolved to approve the proposals as set out in the Cabinet Report. The City Deal Heads of Terms Agreement were detailed in the report.

 

On 9 February, 2017 a report was presented to Council when it was resolved (in summary) that the Joint Working Agreement (JWA) which formally established the Cardiff Capital Region (CCR) Joint Committee (the Regional Cabinet) as a Joint Committee, with delegated functions, with a commencement date of 1 March, 2017 be approved (Minute 1346). The JWA, in relation to the delivery of the Cardiff Capital Region City Deal, was signed and the Regional Cabinet established on 1 March, 2017. The JWA required the constituent Councils to take a subsequent decision, as a “Matter Reserved to The Councils”, on the approval and adoption of the JWA Business Plan.

 

The JWA Business Plan (CCR Strategic Business Plan for the Wider Investment Fund) was attached at Appendix A to the report.

 

The Plan, which would take the City Deal past its first Gateway Review, due in December 2020, also indicated that other proposals would emerge, within the life of the plan, all of which would be rigidly assessed in accordance with the Assurance Framework.

 

As advised in previous reports, the City Deal provided funding to support schemes which would stimulate the economic growth of the region. The agreement with the UK Government and Welsh Government provided £1.2 billion of which £734m was allocated to the Metro, with the balance of £495m being made available as the ‘Wider Investment Fund’. The Regional Cabinet stated that the high level aims of the Wider Investment Fund qwew the creation of 25,000 new jobs and £4bn of private sector investment. The first investment had been made in the Compound Semi-conductor Project, providing a loan of £38.5m, to be repaid, which had the potential to generate 2,000 jobs and over £380m of private sector investment.

 

As the JWA Business Plan had not yet been adopted, and would not be adopted until all 10 constituent authorities agreed the Plan, the Regional Cabinet had substantially funded the initial investment by use of the HMT Contributions received to date. As these funds were revenue it was intended that the adoption of the JWA Business Plan would take place in financial year 2017/2018 allowing Local Authority Partnership capital contributions to be substituted for the revenue grant, thereby protecting the revenue funding for future use on schemes and programmes which were revenue intensive such as skills. Funding of the Local Authority Partnership capital contributions would be based on the council contributions agreed and contained in the JWA, and were set out in the report.

 

The JWA Business Plan would, once adopted, be subsequently updated to reflect changing circumstances. The decision to approve and adopt any updated JWA Business Plan should be a “Joint Committee Matter” save to the extent that any such update amounted to a material change to the prevailing JWA Business Plan, in which case, the decision to approve and adopt such an updated JWA Business Plan should be a “Matter Reserved To The Councils”. In respect of each financial year an Annual Business Plan, in relation to the annual spend for approved project(s) to be implemented in that Accounting Period, would be prepared. Upon an Annual Business Plan being approved, the JWA Business Plan would be deemed to have been amended to incorporate the provisions of the Annual Business Plan.

 

A Well-being and Equalities Assessment had been undertaken and was attached at Appendix B to the report.

 

This was a matter for Council decision

 

Cabinet, having considered the report and all the issues and implications contained therein

 

RESOLVED – T H A T it be recommended to Council that the Joint Working Agreement Business Plan (CCR Strategic Business Plan for the Wider Investment Fund) attached at Appendix A to the report be approved.

 

Reason for decision

 

To agree a formal Joint Working Agreement Business Plan in accordance with the requirements of the Joint Working Agreement, which decision was a “Matter Reserved to each of the Councils”.

 

 

 

Attached is the link to the Cabinet report: 19th March, 2018