The Corporate Director Communities presented a report on the draft Joint Working Agreement Business Plan which was recommended by the Cardiff Capital Region Cabinet, for agreement and adoption as the formal “JWA Business Plan”.

The Corporate Director Communities explained that the JWA Business Plan would address the updated Affordability Envelope, the methodology for agreeing the nature, scope and prioritisation of projects to be developed for the overall benefit of the Cardiff Capital Region, the methodology and responsibility for any external audits and performance monitoring and revenue and capital monitoring reports to be prepared by the Joint Committee and the frequency of these reports.

The Corporate Director Communities outlined the strategic context and spatial priorities of the draft JWA Business Plan and identified the emerging opportunities within the life of the plan. He explained that 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 had stated that the high level aims of the Wider Investment Fund were 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 with the potential to generate 2,000 jobs and over £380m of private sector investment. He explained that following this initial investment, Regional Cabinet had agreed in principle to support the Metro Central Project, Regional Housing Investment Fund, Digital Strategy and Skills for the Future.

The Interim Head of Finance and Section 151 Officer outlined the financial implications and explained that given the change in the funding profile, the Council was required to make a payment of £2,299,950 before the end of the 2017-18 financial year. This would reduce later years payments and require the expenditure and funding within the capital programme to be re-profiled but within the same overall programme envelope. The Interim Head of Finance and Section 151 Officer explained that this would require Council approval for a virement from this budget to the Communities Directorate budget from where the payment would be made and a re-profiling of expenditure and funding for the scheme within the capital programme.

The Cabinet Member for Social Services and Early Help welcomed the agreement in principle to support the Regional Housing Investment Fund and the aim to create 25,000 new jobs.                   

The Deputy Leader supported the recommendations and added that he had been fortunate to visit the Compound Semi-conductor Project which had employees from each area and was situated 35 mins away from Bridgend. It aimed to be a world leader in this field producing more than 8000 wafer chips a week for the Chinese market.

The Cabinet Member for Communities reported that he had attended a public meeting in Porthcawl consulting residents on cuts to subsidies for bus services. This provided an opportunity to look at new ways of providing transport and access to jobs.  

The Leader added that there was full support across the ten authorities with the aim of raising prosperity. There were some concerns about the number of projects allocated to Bridgend however it was recognised that local communities were prepared to travel to work with 7.5 thousand already making the daily commute to Cardiff alone. This would increase growth and prosperity across the region and he was also confident that there would be  investment in Bridgend. He hoped that Council would support the plan and the vision for the region.

RESOLVED:            a)  Cabinet recommended that Council approve the JWA Business Plan attached as Appendix A which detailed the Council’s capital contributions and potential revenue contributions towards the cost of carry for the HMT Grant within Section 9.

b)   Cabinet recommended to Council a budget virement of £1,701,950 (total payment of £2,299,950 less £598,000 already budgeted) from underspends on other council wide budgets to the Communities Directorate to enable the payment to be made in full from revenue budgets in 2017-18, and that the scheme be re-profiled accordingly within the capital programme.