Agenda item

The Committee considered a report which provided an update on:

·         the terms and conditions for receipt of the Growth Deal award 2017/18 including Key Performance Indicators;

·         progress made in implementing and achieving Growth Deal target expenditure 2016/17;

·         the Growth Deal 2019/20 Review progress;

·         profiled expenditure for the 2017/18 financial year; and also to seek agreement to endorse the revised estimate of profiled expenditure on the Programme up to 2020/21; and

·         to agree the source of budget for the Finance Yorkshire Extension Fund.

Members noted the payment arrangements for the Growth Deal for 2017/18.  This included the revised payment schedule for the remainder of the programme and the progress towards achievement of the seven proposed KPIs which were detailed in Appendix A.  In noting the revised spending profile which included the additional Growth Deal 3 allocation, it was highlighted that the profile did not match the Dashboard attached at Appendix B.  This was because the profile is based on currently approved projects and the Dashboard includes estimates of pipeline spend which cannot be verified until the Full Business Case and Finalised Costs are approved.

It was reported that, subject to confirmation in the WYCA statutory financial accounts, the final outturn spend on the Growth Deal 2016/17 was £84.77m which represented 98% achievement of profiled spend.

The progress and overall programme risk with projects in the West Yorkshire plus Transport Fund Pipeline, detailed in Appendix C, was noted.  Members endorsed the proposal for additional criteria to be taken into consideration when considering the Red, Amber, Green (RAG) rating of pipeline projects which were outlined in the submitted report. 

The Committee noted the table in paragraph 3.9 of the report which detailed the forecast timetable for achieving the two main output targets for the Growth Deal – the creation of 10,000 jobs and building 2,000 new homes.  It was recognised that some projects would only achieve the outputs indirectly and, in order to be able to claim these outputs, all LEPS had to identify Growth Deal impact sites to be mutually agreed with the Government.  This opportunity will be used to engage in further discussions with the Government to consider a wider acknowledgement of the outputs achieved by the Programme.

It was reported that a Gateway Review of the West Yorkshire plus Transport Fund was to be undertaken and SQW Consultants had been appointed at a national level to undertake the Growth Deal progress reviews.  The principles of a National Framework had been developed by SQW and a summary was attached at Appendix D to the submitted report.  Following agreement of the National Framework, SQW will work with the Leeds City Region to develop a ‘Locality Framework’ and this will be brought to a future meeting of the Investment Committee for consideration.

Members discussed the Finance Yorkshire Extension Fund and supported the proposal to specifically allocate the £511,500 already approved from the Access to Capital Grants programme.  They recommended that as the loans were repaid the income to WYCA should be recycled into the Access to Capital Grants programme.

Resolved:

(i)         That the proposed KPIs for 2017/18 as detailed in Appendix A of the submitted report be endorsed.

(ii)        That the revised spending profile for 2017/18 as detailed in paragraph 2.6 of the submitted report be endorsed.

(iii)       That the final outturn estimate for Growth Deal of £84.77m for 2016/17 be noted.

(iv)       That the inclusion of an additional criteria - “achievement of target dates for  submission of Outline and Final Business Cases”,  be taken into consideration when considering the RAG (red, amber, green) rating of pipeline projects be endorsed.

(v)        That the methodology for defining impact areas and therefore establishing the outputs for the Programme be noted.

(vi)       That the progress relating to the 2019/20 review be noted.

(vii)      That the proposal to specifically allocate the Finance Yorkshire Extension Fund £511,500 (already approved) from within the Access to Capital Grants Programme be supported and that as loans are repaid the income to WYCA is recycled in the Access to Capital Grants Programme.