Agenda and minutes

Apologies for absence were received from Ian Cherry and Councillors P Box,

R Cooper, S Hinchcliffe, C Les and T Swift.

Councillor Blake declared an other interest (not comprising a Disclosable Pecuniary Interest) in Agenda Item 8, Leeds City Region Assurance Framework Review and Cities and Local Growth Unit (CLoG) Review of LEPs as she is a member of the National Review Panel of LEPs.

The Chair welcomed Adam Beaumont, Nicola Greenan and Amir Hussain, the new private sector members, to their first LEP Board meeting.

Resolved:  That the minutes of the meeting held on 29 November 2017 be approved and signed by the Chair.

The Panel and Group Chairs were thanked for the following reports which were presented to the Board for information and update:

·         Business Communications Group

·         Employment and Skills Panel

·         Green Economy Panel

A verbal update was given on the Land & Assets Panel which had met on 5 January 2018. 

Resolved:  That the updates be noted.

The Board considered a report of WYCA’s Director of Delivery which provided an update on the expenditure and performance of the Growth Deal programme and the progress relating to the forthcoming 2019/20 Growth Deal Review.

The Growth Deal Dashboard and West Yorkshire plus Transport Fund (WY+TF) Dashboards were attached at Appendices 1 and 2 and it was noted that the forecast spend was currently £91.25m against the annual target of £100.15m.  Members noted the projects currently rated as Red which represented a risk to the delivery of the Programme which were outlined in the submitted report. 

It was reported that the WY+TF is subject to an independent assessment by Government in 2019 and the Board was provided with an overview and update in respect of the Growth Deal Gateway Review.  It was reported that a number of Local Evaluation Frameworks had been developed by SQW consultants, WYCA and scheme promoters and details were outlined in the submitted report.   A project ceiling budget of £400,000 has been identified by SQW to undertake the Gateway Review exercise in the Leeds City Region, including all lead-in activity and reporting to Central Government.  Members were advised that in order to seek cost efficiencies, an exercise was being undertaken to establish whether some of the work could be undertaken in-house. 

The Board was advised of the projects in the Leeds district which Carillion had been involved in.  These had included a shared contract with 7 schools (contingency plans were now in place) and the CityConnect and ELOR schemes.  In respect of their involvement with the schemes, it was reported that bonds had been agreed and, whilst there may be some delays to their delivery, there would be no financial loss.

Resolved:  That the progress made in the implementation and review of the Growth Deal be noted.

(Author: Caroline Allen, Led by: Caroline Allen)

The Board considered a report of WYCA’s Director of Resources on the revised LCR LEP constitutional arrangements.

At the last meeting the Board had considered a report on proposed changes to the constitutional arrangements for the LCR LEP.  These needed to be updated to reflect the National Assurance Framework requirements and recent changes in practice including increased public access to the LEP Board’s reports and meetings.  It was reported that draft best practice guidance on LEP governance and transparency had recently been circulated by the Department for Communities and Local Government (DCLG) and they had also indicated that a revised National Assurance Framework will be published in April.  This guidance, together with the recommendations from the Ney report, had been reflected in the revised governance documents. 

Members discussed and noted the proposed LCR LEP constitution and related governance documents which were attached to the submitted report at Appendices 1 to 8 as follows:

Appendix 1      LCR LEP Constitution

Appendix 2      Procedure Rules

Appendix 3      Access to Information Annex

Appendix 4      Code of Practice for Recording

Appendix 5      LEP Board Members’ Code of Conduct

Appendix 6      Procedure for complaints against LEP Board members

Appendix 7      Remuneration and Expenses Scheme

Appendix 8      Confidential complaints procedure

It was agreed that the revised LCR LEP constitution and governance documents be adopted with immediate effect with the exception of the Code of Conduct for which a later date of adoption was agreed to provide sufficient lead in time for members of the Board to complete the new form  register of interests. It was therefore proposed that the Code of Conduct take effect from 31 January 2018 with a requirement that the Register of Interests be completed by all members by 28 February 2018 to meet this requirement.

The Board thanked officers for preparing the suite of documents and welcomed the new measures that would ensure the organisation was transparent, open and accessible.

Resolved:  That the revised LCR LEP constitution and governance documents attached at Appendices 1-8 of the submitted report be adopted with immediate effect with the exception of the Code of Conduct which would come into effect from 31 January 2018 to enable the LCR LEP to meet the requirement from DCLG to publish an up to date register of interests by 28 February 2018.

(Author: Angie Shearon, Led by: Caroline Allen)

The Board considered a report of WYCA’s Executive Head of Economic Services which:

·         Provided the recommendation from the Appointments Panel that an additional member be appointed to the Business Innovation & Growth Panel.

·         Provided members with an update on appointments made by WYCA on 14 December 2017 to the Business Innovation & Growth Panel, the Employment & Skills Panel and the Green Economy Panel.

·         Provided members with an update on appointments made to the Business Investment Panel by the West Yorkshire & York Investment Committee at its meeting on 3 January 2018.

Members discussed the need, where possible, to achieve gender balance on the Panels although the importance of recruiting the most suitable applicant for the role was recognised.  Members were assured that this had been taken into account as part of the recruitment process although for some Panels it had not been possible to achieve this.

Resolved:

(i)         That the proposed appointment to the Business Innovation & Growth Panel           as detailed in confidential Appendix 2, be recommended to WYCA for      adoption at its meeting on 1 February 2018.

(ii)        That the changes to the membership of the Business Innovation & Growth

            Panel, the Employment & Skills Panel and the Green Economy Panel as set           out in Appendix 1, which were approved by WYCA on 14 December 2017, be noted.

(iii)       That the changes to the membership of the Business Investment Panel as set        out in Appendix 1, which were approved by the West Yorkshire & York             Investment Committee on 3 January 2018, be noted.

(Author: Rachel Jones, Led by Melanie Corcoran)

The Board considered a report of WYCA’s Director of Delivery which:

·         Provided an update on progress relating to changes proposed to the Leeds City Region Assurance Framework, and with the recently issued review of Local Enterprise Governance & Transparency (October 2017).

·         Provided an update regarding the Cities and Local Growth Unit (CLoG) review of LEPs.

It was noted that the Assurance Framework had to be updated annually and published on the Local Enterprise Partnership’s website. This was the key mechanism to ensure that WYCA had robust, transparent and accountable processes in place to support the budgets and programmes for the LEP and WYCA. 

It was reported that the ‘Review of Local Enterprise Partnership Governance & Transparency’ had made a number of recommendations to be addressed by the National Assurance Framework and many of these had already been addressed in the Leeds City Region and included in the Local Assurance Framework review.  It was anticipated that a revised National Assurance Framework and guidance would be issued by DCLG in April 2018.

The Board had received a copy of the latest draft Local Assurance Framework and they discussed and noted the proposed changes which were summarised in Appendix 1.  This would also be considered by the Overview & Scrutiny Committee, Governance & Audit Committee and WYCA with final sign off delegated to WYCA’s Managing Director in consultation with the Chair of WYCA and the Chair of the LEP Board. 

It was noted that the CLoG review of the 38 LEPs across the country was due to be completed by Spring 2018.  Members discussed the scope of the review which would include consideration of the geography and boundary overlaps to ensure clarity, transparency and representation of functional economic areas.  It was reported that CLoG was engaging with the LEPs and a northern LEP roundtable event had been held in December.  The need for close working relationships with the other LEPS was recognised and it was noted that there was an on-going opportunity for LEP Chairs and executives to feed into the review before the findings are published.

Resolved:

(i)         That the LEP Board note that the Leeds City Region Assurance Framework is         being revised for the reasons set out in the submitted report.

(ii)        That authority be delegated to the Chair of the LEP Board, in consultation             with WYCA’s Managing Director, to approve submission of the Assurance           Framework.

(iii)       That the progress and next steps of the review of LEPs by Cities and Local             Growth Unit (CLoG) be noted.

(Author:  Marc Eatough, Led by: David Walmsley)

The Board considered a report of WYCA’s Interim Director of Policy & Strategy which provided an update on the development of a single, bold city region strategy, owned by both the LEP and WYCA that provides a compelling proposition using the city region’s tech assets and opportunities to deliver inclusive growth outcomes.

At the last meeting, the Board had agreed to the development of a Local Inclusive Industrial Strategy (LIIS) which will build on the existing Strategic Economic Plan (SEP) to provide a compelling plan that further transforms the City Region. 

Details of the proposed strategic framework for the City Region and a summary of key messages were outlined in the submitted report.  The Board discussed the emerging priorities and the proposed approach to the development of the LIIS.  The opportunities for investment in skills, R&D (research and development) and innovation were welcomed to ensure that future growth would be inclusive and benefit all communities.  The proposed approach would involve working with WYCA’s Advisory Committees and engaging with the District Councils, universities and business representative groups.  Consideration would be given to the ways in which stakeholders could be engaged on the vision and alternative and additional perspectives would be established that will demonstrate how, with the right interventions, all parts of the City Region can be transformed.  Work had commenced on developing a transformative vision narrative for the City Region and an example, which could be developed for different audiences, was included in the report. 

Members welcomed the progress to date and it was agreed that updates would be provided at each meeting.

Resolved:  That progress reports be prepared for future meetings.

(Author: Sue Cooke, Led by: Andrew Wright & Sue Cooke)

The Board considered a report which provided an update on the work of the Business Innovation and Growth Panel and also sought endorsement for the trade and investment activity programme for the remainder of 2017/18.

Members noted the overview of the Trade and Investment team’s activities for remainder of the financial year which was attached at Appendix 1 to the submitted report.  It was noted that a plan for 2018/19 was being prepared and would be brought to a future meeting. 

The Board considered the outline programme for MIPIM 2018 which was attached at Appendix 2 and a background note at Appendix 3.  The benefits and importance of MIPIM for the City Region were discussed and members welcomed the reported increase in private sector support which provided the majority of funding for the City Region’s attendance. It was noted that the LEP would be attending MIPIM in March 2018 together with representatives from councils across the region and a number of private sector investors. 

Resolved:

(i)         That the contents of the Business Innovation and Growth Panel update be noted and endorsed.

(ii)        That the Trade & Investment plan of activity for the final quarter of 2017/18        including the outline MIPIM programme for March 2018 be endorsed.

(Author: Patrick Bowes, Led by: David Walmsley)

The Board considered a report of WYCA’s Interim Director of Policy & Strategy which provided an update on the latest economic and business intelligence.

The report and appendices covered the main local, national and international economic developments since the last meeting although it was noted that there was  limited new, substantial local /regional data available at the present time. 

Resolved:  That the analysis and economic update be noted.

(Author: Jon Skinner/Henry Rigg, Led by: Sue Cooke)

The Board considered a report of WYCA’s Executive Head of Economic Services on the proposal to target inclusive growth outcomes through the use of more stretching and proportionate criteria to the grants awarded to businesses.  The report also described the ongoing testing and consultation with private sector partners, including previous grant recipients, to ensure desired impacts are achieved.

The LEP Growth Service (Growth Hub) was launched in July 2015 and the LEP and WYCA was working closely with BEIS and other LEPs/Growth Hubs on the future of the service.  It was recognised that there was a now a need to focus on the quality of jobs created as well as the quantity and that this could be helped by using the leverage of the LEP’s grants for businesses to create and safeguard better and more jobs. 

It was noted that there was an opportunity to review the criteria and conditions for capital grants to businesses.  Members discussed the proposals which were attached at Appendix 1 together with the information on the current National Living Wage and Real Living Wage which was attached at Appendix 2. 

The Board noted the findings of a survey sent to recipients of LEP grants and were advised that further consultation with businesses would take place in the near future.  Results from the questionnaires and feedback from the LEP Board will be used to refine the proposed criteria and policy approach.  It was suggested that this be considered by the Business Innovation and Growth Panel in March 2018 with a view to concluding agreement and moving to implementation in2018/19.

Resolved:

(i)         That the proposal that more stretching inclusive growth conditions are set for      the programme of grants to ensure jobs created and/or safeguarded are of a better quality, and can support career progressions within businesses be      noted.

(ii)        That a broader range of inclusive growth outcomes are requested from    businesses in receipt of larger grants, including work with schools, providing           local supply chain opportunities and adopting sustainable travel planning.

(iii)       That the Business Innovation and Growth Panel be requested to work up the         proposals further in the light of feedback and further consultation and to           bring back revised proposals in due course.

(Author: Angela Taylor, Led by: Angela Taylor)

The Board considered a report of WYCA’s Director of Resources which provided an  update on the work that has taken place to review and enhance existing risk management arrangements for WYCA.

It was reported that work had been undertaken to update WYCA’s existing risk management arrangements and a draft risk management strategy, a copy of which was attached at Appendix 1, had been prepared.  This set out the key organisational principles and processes by which risk management activities will be governed and the report summarised the key areas covered by the document. 

In parallel to the development of the draft Risk Management Strategy, the organisation’s Corporate Risk Register was also being reviewed and a copy of the current version was attached at Appendix 2.

It was noted that the General Data Protection Regulation (GDPR) would come into force in May 2018 and a new and revised suite of Information Governance (IG) policies had been published in June 2017.  These outlined the organisation’s approach to Data Protection, Information Governance, Information Sharing, Freedom of Information/Environmental Information Regulations, Subject Access Requests and Records Management, Retention and Disposal.  An IG audit had also been undertaken and, as a result, a number of actions to better prepare for May, had been completed and these were detailed in the submitted report.

Members were advised that risk management arrangements were to be considered by the Governance and Audit Committee and WYCA and asked that the Board be kept updated on progress.

Resolved: That the draft Risk Management Strategy and Corporate Risk Strategy be noted.

(Authors: Sue Cooke & Liz Hunter, Led by: Sue Cooke & Liz Hunter)

The Board noted a report of WYCA’s Executive Head of Economic Services and Interim Director of Policy & Strategy which provided an update on the LCR HS2 Growth Strategy, which included the LCR HS2 Connectivity Strategy and LCR HS2 Skills and Supply Chain Strategy.

Councillor Waller thanked officers for taking the comments made at the previous meeting in respect of York into account.

Resolved: That progress on the LCR HS2 Growth Strategy and the on-going public stakeholder engagement be noted.

(Author: Angela Taylor, Led by: Angela Taylor)

The Board noted a report of WYCA’s Director of Resources which advised of the work underway to progress business and budget planning for 2018/19.

Members were advised that the final budget report will be presented to the WYCA meeting on 1 February 2018.

Resolved:  That the work underway to finalise the business planning and budget for 2018/19 be noted.

Carillion

Members discussed the recent collapse of Carillion and the impact this would have on the supply chain, jobs and apprenticeships in the city region.  It was noted that this was to be looked at and information would be shared with the LEP Board members.

Rob Norreys

It was reported that Rob Norreys, the former Director of Policy, Strategy & Communications had left WYCA at the end of the year.  Members expressed their gratitude to Rob for his hard work, contributions and support during his long and distinguished service and the important role he had played in building the foundations for the City Region, creation and development of the LEP and WYCA and in securing significant Local Growth funds. 

The Board asked that the Chair write to Mr Norreys to pass on their thanks and best wishes for his future career.

27 March 2018, Committee Room A, Wellington House, Leeds

The next meeting of the LEP Board will be held on 27 March 2018 at 2.30 pm in Wellington House, Leeds.