Agenda and minutes

The Chair welcomed new member Councillor Paul Davies to his first meeting and apologies were received from Councillors Jacob Goddard, Graham Isherwood, and Betty Rhodes.

There were no declarations of disclosable pecuniary interests.

There were no items requiring the exclusion of the press and public.

Resolved:  That the minutes of the meeting held on 15 November 2019 be approved pending an amendment to record Cllr Richard Smith’s apologies.

To consider strategic developments in transport, including:

1.    The potential impact of the sale of West Yorkshire bus operators (First and Arriva) and the Combined Authority’s possible participation in the sale.

2.    The potential impact of the Blake-Jones Review, Williams Rail Review and Oakervee HS2 Review on the Combined Authority.

3.    Transforming Cities Fund (TCF) bid.

Cllr Kim Groves, Chair of Transport Committee, has been invited for this item.

The Committee considered a report of the Director of Policy, Strategy & Communications on strategic transport issues and their potential impact on the West Yorkshire Combined Authority.

• The sale of West Yorkshire bus operators (First and Arriva) and the Combined Authority’s possible participation;
• The Transforming Cities Fund submission.
• The potential impact of the Blake-Jones Review, Williams Rail Review and Oakervee HS2 Review on the Combined Authority;

The following were in attendance for this item:

·       Councillor Kim Groves, Chair of the Transport Committee

·       Ben Still, Managing Director

·       Dave Pearson, Director of Transport Services

Questions and discussion focused on the Combined Authority’s possible participation in the sale of bus companies in West Yorkshire and the Committee learned and concluded the following:

Influence over the current bus network

• There is a serious disproportion in that the Combined Authority spends around £70 million a year (almost a fifth of its total spending) on bus services but has very little control over the bus network.
• The authority needs some degree increased of control over services if it is to deliver on its strategic objectives and promises, such increasing bus use, budget efficiencies in subsidies and tackling climate change.
• Consequently, it is right that the Combined Authority is pursuing all legal and feasible options – pending technical advice – and is not counting anything out at this stage.

Details of the sale

• It is understood that First has put up their entire UK operation for sale, but the structure of the sale is not yet known. Possibilities include a buyer purchasing the entire UK operation outright or smaller bids for regional operations.
• Different regions perform differently commercially. Ultimately, any buyer will seek to maximise commercial value, which is bigger in urban areas than in rural areas. 
• First West Yorkshire is largely profitable but there is a disparity across districts where some urban areas, such as Leeds, are more profitable for the company than other areas.
• If First sold the West Yorkshire operation alone, it would likely attract many buyers as it is currently profitable. However, if it opted to sell the West Yorkshire operation together with neighbouring regions, it might generate less interest.
• It was felt that the large pension deficit liability might be one of the possible factors behind the First company being put up for sale and that this must be taken into account by any buyer or participant in the sale.
• First is a large local employer and any implications for employees must be taken into account regardless of what happens next.
• It is also understood that First plan to streamline their operations in the run up to the sale and conversations between First and the Combined Authority on how this will affect passengers are ongoing.

Legal and technical advice

• Legally speaking, the Bus Services Act 2017 says a combined authority cannot form a company itself, or with others, to operate buses. However, the Act is silent on whether a combined authority can purchase shares in a company that might run bus services.
• The  ...  view the full minutes text for item 5.

To scrutinise the final 2020/21 draft budget and business plan before it is formally approved at the 6 February 2020 meeting of the Combined Authority. 

The Committee received a report of the Director of Corporate Services outlining the work underway to progress the draft revenue and capital budget and directorate business plans for 2020/21.

The following were in attendance for this item:

·       Ben Still, Managing Director

·       Angela Taylor, Director of Corporate Services

·       Dave Pearson, Director of Transport Services

The Committee discussed, learned and concluded the following:

Budget and spending

• Future budget reports could present, in list or table form, changes from the previous year’s budget and what impact assessments have been conducted.
• An explanation of when the authority has chosen to make a saving and where there was a change in government or other capital funding arrangements could also be useful. 
• Most spending is directed towards transport services and project delivery and much less spent on social issues such as skills and housing.
• This imbalance between transport to non-transport spending is due to capital funding for certain areas, such as housing, skills and the environment, being more limited and ringfenced.
• Although it was felt that there was a relatively large amount spent on PR/marketing and consultants compared to other areas, marketing and consultant research activity and spending includes spending on skills, transport, inward investment and housing that require marketing. The Combined Authority operates a centralised marketing operation instead of placing marketing spend under the relevant service areas.

Mayoral devolution:

• Mayoral devolution would likely provide more funding and flexibility in spending.

·       Prior to the election, the government had previously indicated that it was unwilling to pursue a Yorkshire-wide devolution deal according to the same model in the existing mayoral city region devolution areas such as Greater Manchester and West Midlands.

·       Instead the government asked each sub-region of Yorkshire to consider separate proposals – South Yorkshire, West Yorkshire, York / North Yorkshire and the Humber.

·       The government’s increased majority in the election and intention to draft a white paper on devolution is expected to have strengthened the government’s position and their desire to conclude outstanding devolution deals in key economic areas like West Yorkshire.

·       As of this week, South Yorkshire leaders and ministers announced they are now moving forward with their Sheffield City Region devolution deal which will now unlock further mayoral funding over 30 years.

·       They did so on the basis of a letter from the government clarifying that they might consider a Yorkshire devolution model in the future.

·       There is an optimism and desire on all sides to conclude a deal in West Yorkshire and council leaders are due to meet with ministers soon to discuss next steps.

·       The date of any mayoral election in West Yorkshire will be part of the negotiations.

·       If the date is relatively far in the future, interim mayor arrangements might be necessary.

·       An interim mayor would be appointed by a meeting of the Combined Authority and it is understood that there would be no special election but any interim mayor must be a currently elected individual – a councillor, police commissioner or MP.

·       In terms of precedent, in  ...  view the full minutes text for item 6.

To monitor and maintain an overview of the Combined Authority’s performance, including – key performance indicators (KPIs) and budget performance, risk register and management, capital spending and projects, and progress in achieving other major strategic objectives.

The Committee received a report of the Director of Corporate Services updating the Committee on a range of corporate performance matters including 2019/20 budget monitoring, corporate plan key performance indicators (KPIs), risk management and the assurance framework.

The following were in attendance for this item:

·       Ben Still, Managing Director

·       Angela Taylor, Director of Corporate Services

·       Dave Pearson, Director of Transport Services

The Committee noted that the internal audit report on risk management concluded a ‘limited assurance’. This was due to inconsistencies in risk management processes across different service areas. A revised risk management strategy, which addresses the internal audit report’s recommendations, is being considered by the Governance & Audit Committee meeting on 23 January 2020.

It was argued that although many KPI targets are marked green and are being achieved, the impact is low as the outcomes are relatively small when compared to the region’s needs. Examples included:

• Better Homes Yorkshire programme is marked green for enabling 526 (out of 750 target) homes to become more energy efficient but this is a very small fraction of total homes in need of help in the Leeds City Region.
• 11 ULEV electric charging points have been installed to date, marked green, but similarly they are a small fraction of the amount of charging points needed to make an impact.

The Managing Director agreed and noted that the targets do not represent the Combined Authority’s ambition but only what is possible with the capital funding available to the Combined Authority. The authority continues to put forward the case that more funding be provided so that essential schemes can be maintained or expanded. 

Resolved:  That the report be noted and the Committee's feedback and conclusions be considered further. 

To consider the work programme, future agenda items, key decisions, and receive any updates from spokespersons and working group leaders:

-   Cllr P Harrand (Chair): corporate & strategic issues

-   Cllr J Baker (Deputy Chair): environment (climate change working group)

-   Cllr S Baines: business growth (business grants working group)

-   Cllr D Foster: transport

-   Cllr D Jones: employment and skills

The Committee considered a report of the Scrutiny Officer outlining the 2019/20 Work Programme and received verbal updates from spokespersons.

Following a referral from a Kirklees councillor and a recent issue at Leeds City Council where an inclusive growth workshop for members did not initially include colleagues from neighbouring councils, the Chair suggested to the committee that he look further at the system of cross border working, consultation and communication between partner authorities. It may involve setting up a task and finish group to investigate further, depending on preliminary conversations with officers. The Chair will report back to a future meeting, advising on next steps.

Both working group leaders (Cllrs Baines and Baker) suggested that, due to the elections, purdah and Christmas break, they aim to report back at the May meeting instead of the March meeting as initially planned.

The environment spokesperson (Cllr Baker) noted that the Green Economy Panel scheduled for 28 January 2020 had been ‘cancelled’ and is now a private members workshop. It was suggested that the climate change working group review the Panel’s work as part of its workplan.

The transport spokesperson (Cllr Foster) suggested that scrutiny keep a close eye on the situation with Northern Rail and focus more on scrutinising cycling and walking on the transport agenda considering the declaration of a climate emergency. 

The newly appointed skills spokesperson (Cllr David Jones) provided an outline of a meeting with the Combined Authority’s Head of Employment and Skills and suggested that, amongst other things, that thought be given to how apprenticeships are being used to support the region’s strategic training needs, how to improve a promising programme of school engagement and what work is ongoing to reach traditionally ‘hard to reach groups’.

Resolved: 

i)       That the work programme be noted.

ii)     That the Chair’s intention to investigate the system of cross border working, consultation and communication between partner authorities be noted.

iii)    That the climate change and business grants working group terms of reference be noted.

iv)   That the working groups’ intentions to report back at the 22 May 2020 meeting instead of 20 March 2020 meeting be noted.

v)     That the selection of Cllr David Jones as employment and skills spokesperson be ratified and spokesperson updates be noted.

vi)   That the forward plan of upcoming key decisions be noted.