Agenda item

The Chief Executive reported that on 15^th March 2016, each of the ten constituent council leaders in South East Wales, the First Minister, the Welsh Government Minister for Finance and Government Business, the Secretary of State for Wales and the Chief Secretary to the Treasury signed the Cardiff Capital Region (‘CCR’) City Deal Heads of Terms Agreement.

The City Deal is therefore an agreement between the UK Government, Welsh Government and the ten leaders of the CCR. It includes:

·         A £1.2 billion investment in the CCR’s infrastructure through a 20-year Investment Fund;

·         The creation of a non-statutory Regional Transport Authority to co-ordinate transport planning and investment, in partnership with the Welsh Government;

·         The creation of a CCR Skills and Employment Board;

·         The CCR and the Welsh Government will work with the Department of Work and Pensions to co-design the future employment support from 2017 for people with a health condition or disability and/or long term unemployed;

·         A CCR Business Organisation will be established to ensure that there is a single voice for business to work with local authority leaders; and

·         The Welsh Government and the CCR commitment to a new partnership approach to housing development and regeneration. This will ensure the delivery of sustainable communities, through the use and re-use of property and sites.

To ensure the right investments are made to achieve significant economic growth the CCR City Deal has set a small number of key targets, which are: the creation of 25,000 new jobs by 2036; and leveraging £4 billion of private sector investment as a result of the £1.2bn public sector investment.

The Chief Executive informed the Council that the stage had been reached where further consideration had been given to the principles outlined and the Council is now required to consider taking the next steps to commit to the terms of the city deal.

The full Joint Working Agreement was circulated to all members.

The Leader of the Council moved acceptance of the proposals saying that the Friars Walk development had transformed both the physical view and the ‘feel good factor’ in the city. The Leader mentioned the coming of the Convention Centre and positive impact on the city that would have. She said that location was ta the heart of Newport’s renaissance, connecting economies and providing an economic heart to the Cardiff City Region as well as providing access to markets across the UK.

The Leader stated that despite budgetary constraints, the Council continues to invest in the people of Newport and that opportunity was at the heart of what the Council does.

The Leader said that the City deal offered a unique opportunity to Newport and its partners and that one of the key elements was the devolution of decision making to a local level. There would be increased investment through improvements in infrastructure and skills development. The Leader stated that the City Deal would be a catalyst for working more effectively, bringing more and better opportunities to communities of the city and the wider region. The Leader considered a positive vote would show Newport was perfectly placed to deliver on the promise to make the City and the South East Wales Region a better place for its residents and future citizens

The Leader of the Opposition seconded acceptance of the proposals saying he had attended the recent seminar and that whilst the deal was not perfect, it provided an opportunities as we continue to lag behind much of the UK. Returns far outweighed the investment and managed properly it could transform the economy of South east Wales

A significant number of elected members from all political groups spoke in favour of the proposals. Councillor Hannon spoke against the proposals.

The Chief Executive confirmed that this deal does not stop our ability to invest in, and create, local projects.

Resolved:

i.      To approve the Joint Working Agreement (the ‘JWA’) as the legal document that formally establishes the Cardiff Capital Region (‘CCR’) Joint Committee (the ‘Regional Cabinet’) as a Joint Committee, with delegated functions, with a Commencement Date of the 1^st March 2017. The elected member representative to the Regional Cabinet shall be the Leader of the Council, or his/her nominated Deputy;

ii.     To approve the financial contributions from each constituent council towards the collective £120m total, (together with such associated costs e.g. carry costs), as detailed in the body of this report;

iii.    To approve the carry forward of any remaining revenue funds from 2016/2017, contributed by each constituent council, into 2017/2018 in order that the support structure for the Regional Cabinet continues;

iv.   To approve the collective revenue contributions of up to £1m (inclusive of Recommendations (ii) and (iii)  above, on a proportional basis as set out in the JWA) to the 2017/2018 budget, in order that the support structure for the Regional Cabinet continues;

v.    To approve that the City of Cardiff Council acts as the Accountable Body with the responsibilities as set out in the JWA;

vi.   To approve the Assurance Framework as the open and transparent, robust decision making process for considering all proposals requiring support from the CCR City Deal Wider Investment Fund;

vii.  To approve the Implementation Plan in the form attached to the JWA, subject to each constituent council approving the JWA Business Plan;

viii.To approve the Chief Executive in consultation with the Leader of the Council, the Monitoring Officer and s151 Officer be granted delegated authority to agree such amendments as are necessary to the JWA, Assurance Framework and Implementation Plan (as are appropriate) from the date of acceptance of these recommendations to the Commencement Date of the 1^st March 2017;

ix.   To approve the Chief Executive in consultation with the Leader of the Council, the Monitoring Officer and s151 Officer be granted delegated authority to agree whether the Council should continue to explore the opportunity to continue to participate in the CCR City Deal in the event that one or more of the ten constituent councils fail to agree any of the recommendations; and

x.    To approve the Leader of the Council or her nominated Deputy be granted delegated authority to sign the JWA on behalf of the Council.