To outline the next steps for the Cardiff Capital Region City Deal.  To seek approval for the formal establishment of the Cardiff Capital Region Joint Committee, which will oversee the region’s economic growth agenda and delivery of the 20 year Cardiff Capital Region City Deal.  To seek approval of the Joint Working Agreement (JWA), Assurance Framework, Implementation Plan and Cardiff’s role as the Accountable Body that will enable the establishment of the Cardiff Capital Region City Deal. 

The Chief Executive sought approval for the formal establishment of the Cardiff Capital Region Joint Committee to oversee the region’s economic growth agenda and delivery of the 20 year Cardiff Capital Region City Deal.  He also sought approval of the Joint Working Agreement (JWA), Assurance Framework, Implementation Plan and the role of Cardiff Council as the Accountable Body that will enable the establishment of the Cardiff Capital Region City Deal. 

The Chief Executive reported that the Cardiff Capital Region City Deal Heads of Terms Agreement which was signed on 15 March 2016 outlined the parameters for the detailed development of the City Deal and set out how the ten local authorities will work in partnership with the Welsh Government and UK Government to support economic growth.  He stated that in order to progress enhanced regional working and the establishment of the Investment Fund; the Heads of Terms outline proposals to establish a Cardiff Capital Region governance model.  He informed Cabinet that the development of the City Deal is reliant on the establishment of a Joint Committee comprising the participating local authorities, which will also be the lead body for any local authority regional collaboration on issues highlighted within the City Deal Heads of Terms.  He also informed Cabinet that securing a final City Deal agreement is also reliant on the establishment of an Investment Fund Assurance Framework which will ensure that schemes taken forward represent good value for money and are underpinned by a robust business case.  An exception to this is the South East Wales Metro which will be subject to a separate Welsh Government assessment.  Committing the Council to a to a Joint Working Agreement that represents a fundamental and long-term shift in the way in which local government in the city-region functions, bringing about a step change in collaboration in the areas of economic development, skills and training, regeneration, strategic planning, housing and transport.

The Chief Executive reported on progress in delivering the City Deal in that the Heads of Terms outlines the joint commitments made by the ten local authorities of the Cardiff Capital Region, the UK Government and the Welsh Government to unlock £1.2 billion of investment to increase the performance of the city-region economy.  He stated that recent work had encompassed the establishment of:

·         Cardiff Capital Region Joint Cabinet;

·         A Programme Management Office;

·         Growth and Competitiveness Commission;

·         Employment and Skills Board;

·         Regional Transport Authority;

·         Cardiff Capital Region Economic Growth Partnership

·         A Regional Business Organisation 

The Chief Executive reported that in order to discharge the Cardiff Capital Region‘s City Deal commitments and implement an ambitious economic strategy in the longer term, the ten local authorities requested that greater financial autonomy and flexibility should be granted by government in order to accelerate the delivery of critical infrastructure across the region at a time of local authority funding constraints. 

The Chief Executive also reported that the next steps involved the establishment of a Regional Cabinet and to agree the terms and conditions of the City Deal Investment Fund.  He stated that there are three specific requirements to be met, set by UK and Welsh Governments, namely:-

·         The transition of the Regional Cabinet out of the “Shadow” arrangements;

·         Formal approval of the Assurance Framework for the Investment Fund; and

·         Formal approval of the Implementation Plan.

The Chief Executive informed Cabinet that all ten constituent councils will be asked to agree to the recommendations set out in the report and which have been presented in a consistent manner to all ten councils.  He stated that once all ten constituent councils agree to the Assurance Framework and the Implementation Plan they need to be submitted to the Welsh and UK Governments by the end of February 2017 and finalised at the latest by 31^st March 2017, in order to release this financial year’s funding contribution from UK Government.  The Chief Executive highlighted the financial implications for the ten partner local authorities and based on the proportion of total population for the City Deal area, this Council’s share of the financial contributions is 9.4% resulting in a capital contribution of £11.28 million over 10 years and a proposed ‘Affordability Envelope’ of £19.9 million, including the cost of carry.  He outlined in detail how the Council would fund both the revenue and capital implications of the City Deal in the MTFS.

The Leader in commending the recommendations stated that this was a watershed in the development of the City Deal and he commented on the close working relationship which had been developed amongst the ten local authorities.  He also commented that the City Deal is a very ambitious programme and was unique in the way in which the ten local authorities had come together with the UK and Welsh Governments.  He was also very heartened at the way the 10 local authorities had approved the recommendations and next steps and which has also had cross party support.  The City Deal programme has also had the support of the three Universities in the region as well as the Federation of Small Businesses; Institute of Directors and CBI.  He stated that the case for the City Deal is compelling and he looked forward to the Council adopting the proposals for the future prosperity of those who live in the region and to secure investment in the region. 

The Cabinet Member Social Services and Early Help commented on the need for inclusion and on the importance of convincing everyone in the region to support the City Deal.  The Cabinet Member Education and Regeneration in supporting the recommendations commented on the importance of establishing the Growth and Competitiveness Commission which identified the challenges and opportunities for economic growth and how the region can achieve its full growth potential.  He believed that the themes and role models are right and commented on the importance of regional investment which had brought prosperity not only in the UK but also in European cities.  The Deputy Leader commented on the challenges ahead presented by the City Deal and hoped that the opportunities are grasped.  The Cabinet Member Wellbeing and Future Generations commented on the importance of the collaboration of securing what is best for the whole of the region and not based on parochialism.  The Leader hoped that this approach was recognised by the 10 local authorities.  The Chief Executive informed Cabinet that the Assurance Framework would be in place to ensure the schemes taken forward represent value for money for the region and are underpinned by a robust business case.                          

RESOLVED:            That Cabinet  approved the following in so far as it applied to its function:

(1)          Approved the Joint Working Agreement as the legal document that formally establishes the Cardiff Capital Region Joint Committee (the ‘Regional Cabinet’) as a Joint Committee, with delegated functions, with a Commencement Date of the 1^st March 2017.  The elected member representative to the Regional Cabinet shall be the Leader of the Council, or his/her nominated Deputy;

(2)          Approved the financial contributions from each constituent council towards the collective £120m total, (together with such associated costs e.g. carry costs), as detailed in the body of this report;

(3)          Approved the carry forward of any remaining revenue funds from 2016/2017, contributed by each constituent council, into 2017/2018 in order that the support structure for the Regional Cabinet continues;

(4)          Approved the collective revenue contributions of up to £1m (inclusive of Recommendation 3 above, on a proportional basis as set out in the JWA) to the 2017/2018 budget, in order that the support structure for the Regional Cabinet continues;

(5)          Approved that the City of Cardiff Council acts as the Accountable Body with the responsibilities as set out in the JWA;

(6)          Approved the Assurance Framework as the open and transparent, robust decision making process for considering all proposals requiring support from the CCR City Deal Wider Investment Fund;

(7)          Approved the Implementation Plan in the form attached to the JWA, subject to each constituent council approving the JWA Business Plan;

(8)          Approved the Chief Executive in consultation with the Leader of the Council, the Corporate Director Operational and Partnership Services and s151 Officer be granted delegated authority to agree such amendments as are necessary to the JWA, Assurance Framework and Implementation Plan (as are appropriate) from the date of acceptance of these recommendations to the Commencement Date of the 1^st March 2017;

(9)          Approved the Chief Executive in consultation with the Leader of the Council, the Corporate Director Operational and Partnership Services and s151 Officer be granted delegated authority to agree whether the Council should continue to explore the opportunity to continue to participate in the CCR City Deal in the event that one or more of the ten constituent councils fail to agree any of recommendations (1) – (2) above; and

(10) Approved the Leader of the Council or his nominated Deputy be granted delegated authority to sign the JWA on behalf of the Council.