Issue - items at meetings - West Yorkshire Business Accelerator Fund

(Lead Member: Cllr S. Pandor, Director: Liz Hunter)

Resolved: That the Combined Authority approves that, subject to the conditions set by PAT:

a) The West Yorkshire Business Accelerator Fund scheme proceeds through decision point 2 (Strategic Outline Case) and decision point 4 (full business case) and work commences on activity 5 (delivery).

b) The West Yorkshire Business Accelerator Limited Partnership, a Private Fund Limited Partnership, is established with the Combined Authority as the sole Limited Partner. The other party of the partnership will be the General Partner, a Special Purpose Vehicle to be set up by the appointed Fund Manager.

c) Approval is given to the Combined Authority’s contribution of £21,650,000. The total scheme value is £21,650,000.

d) The Combined Authority delegate approval of the final investment strategy to the Managing Director.

e) Future approvals are made in accordance with the assurance pathway and approval route outlined in the submitted report and where required, any change requests are delegated to the Business, Economy, and Innovation Committee. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

Conditions

The following conditions have been set by PAT to gain Approval to Proceed to Delivery:

a) Sign off from the Combined Authority’s Legal and Finance Team. Finalise and review Limited Partnership Agreement and Investment Management Agreement with Pinsent Mason as the external legal advisor of the Combined Authority.

b) Review Environmental Social & Governance (ESG), Equality Diversity & Inclusion (EDI) KPIs and targets, discuss and agree with Fund Manager.

c) Develop a clear Communications Strategy outlining reporting mechanisms and requirements from the Fund Manager.

d) Develop a robust Monitoring and Evaluation Plan setting out monitoring methodology, timelines, responsibilities, and evaluation reporting.

The Combined Authority considered a report seeking approval for the West Yorkshire Business Accelerator Fund, which had previously been discussed at its March meeting and had been endorsed by the LEP Board.

The West Yorkshire Business Accelerator Fund would be a revolving fund intended to launch in March 2022, which would be used in interventions for SMEs to support the growth of the region’s economy. This was a successor of the Growing Places Fund which had been approved by the Combined Authority in 2013 and had achieved significant revenue from loans made to intervene in cases of market failure on stalled development projects. It was highlighted that the Fund would employ the Combined Authority’s commitment to equality, diversity and inclusivity in its operation.

Members welcomed the Fund, noting the strong opportunities it provided to SMEs and the wider business community, but emphasised the need for the highest levels of transparency and accountability and requested that future reporting back to the Combined Authority include where any elected Members or regional MPs had been involved in supporting bids and any prior meetings the Combined Authority may have had with a company prior to investments being made.