The Corporate Director Education and Family Support sought approval to discontinue with the decision of Cabinet of 21 November 2018 in respect of pursuing Option 3 for the financial delivery of Band B of the School Modernisation Programme.  He apprised Cabinet of the change to the Band B capital grant intervention rate; and sought approval to pursue Option 2 for the financial delivery of Band B of the School Modernisation Programme, prior to submission to Council.

He reported that the Policy and Planning Framework sets out areas where principles should be applied in practice.  The principles which are relevant to Band B are the size of primary schools and value for money, efficiency and effectiveness.  He informed Cabinet of the background to the school modernisation programme wherein the Council in September 2006 approved a vision for its schools to make them fit for purpose in the 21^st century.  Since then, the school modernisation programme has been established as one of the Council’s main strategic programmes.  He stated that Band A schemes, which are funded on a 50/50 basis with the Welsh Government are due for completion in 2018-19 and he outlined the schemes which had been completed.  Work was nearing completion on the remaining scheme within Band A at Ysgol Gynradd Gymraeg Calon Y Cymoedd.

He reported that a priority list of schemes for delivery within the Band B timescale was identified.  Cabinet in October 2017 received a report on thethe outcome of the work of the school modernisation workstream and the revised SOP submission and gave approval to discontinue the original Band B schemes and approved schemes to promote the Welsh language and building condition.  It also gave approval to undertake options appraisal work during the Band B period in order to prepare for Band C.  The Council submitted a bid to the Welsh Government for the creation of Welsh-medium child care facilities, the Council has received approval in principle funding of £2.6m.  On 6 December 2017, the Welsh Government gave approval in principle to the Council’s second wave of investment of £68.2m.  In January 2018, the Council approved in principle the financial commitment required for Band B.  He stated that Cabinet was advised in November 2018 of the Welsh Government’s review of the Mutual Investment Model.  

He reported that the Welsh Government had announced a change to the capital grant intervention rate where its contribution for Band B has increased to 75% for special school and pupil referral units and 65% for all other schemes.  The Mutual Investment Model intervention rate would remain at 75%.  He stated that officers had reviewed the financial implications of the options and that match funding of £23m was requested to meet the four primary schools identified to be met from general capital funding, with the balance being met from Section 106 funding.  He outlined a comparison of MIM and capital grant schemes together with 4 funding options and an analysis made of options 2 and 3. 

The Cabinet Member Education and Regeneration in commending option 2 being pursued commented that the Council has a good track record of delivering schools through the traditional route.  The Deputy Leader commented that Band B is the Council’s flagship project and that the proposals are driven by demand for school places and better educational outcomes for children.  He stated that an off the shelf model delivered through the MIM would not be appropriate for the authority.               

RESOLVED:           That Cabinet:

(1)            Discontinued with the decision of Cabinet made on 21 November 2018 in respect of pursuing Option 3 for the financial delivery of Band B of the School Modernisation  Programme;

(2)            Noted the change to the band B capital grant intervention rate;

(3)            Gave approval to pursue Option 2 for the financial delivery of Band B, subject to sufficient resources being identified and allocated to meet the match-funding commitment; and

Gave approval for a report to be submitted to Council to amend the capital programme to reflect the above.