Agenda item

The Leader introduced the report, which was a common report, based on a background note prepared by the Director of the Cardiff Capital Region City Deal.  The report was being presented to all of the 10 local authorities forming the South East Wales Corporate Joint Committee, to provide an update on the implementation process in order to meet the statutory requirements of the Local Government and Elections (Wales) Act 2021.

The report set out an interim governance and delivery model, pending the resolution of a number of outstanding financial issues and the transfer of functions to the Corporate Joint Committee. This involved a ‘twin-track’ approach to comply with the bare minimum legal requirements to formally establish the CJC by the statutory deadline of 31 January and would continue with the existing City Deal Joint Working arrangements, until outstanding issue were resolved.

Whilst Cabinet nor Council were being asked to take any further decisions at the present time, the report was simply for information purposes and Cabinet were being asked to note the current position regarding the implementation plan and the interim governance arrangements. The formation and operation of the Corporate Joint Committee was prescribed by legislation and Regulations, while the interim delivery and governance arrangements were in accordance with the CCR Joint Working Agreement previously agreed by Council. 

Colleagues were aware that the 2021 Act required all local authorities in Wales to establish Corporate Joint Committees to discharge certain regeneration, economic development and transport functions at a regional level. These Corporate Joint Committees were different to previous Joint Committees, such as the CCR Regional Cabinet, because they were mandated by Welsh Government as opposed to being voluntary arrangements, and they were constituted as separate legal bodies, with powers to set their own budget, employ staff and hold property and other assets.  A copy of the full Regional Cabinet report was attached at Appendix 2. 

The Regional Cabinet agreed on 13 December to adopt a “twin-track” approach, which would meet the minimum requirements of the legislation but enable the CJC to remain dormant and for the City Deal arrangements to continue during this interim period. A full copy of that Regional Cabinet Report is attached at Appendix 3.

The intention was that the CJC would hold an inaugural meeting of all the respective Leaders before 31 January, to set an initial budget, adopt the proposed standing orders set out in Appendix 1 and establish a basic governance framework. The Standing Orders simply reflected the requirements of the legislation and Regulations, with each of the 10 authorities being represented by their respective Leaders and each member having one vote.  Budget decisions would be unanimous and other decisions required a special majority of 70%.  The Brecon Beacons National Park Authority was also required to be a statutory member of the CJC but only in relation to the development of the Strategic Development Plan, given their planning powers. There was also power for the CJC to co-opt other members.

For the purposes of setting the first CJC budget and the bare minimum model, the CJC would utilise the existing agreed City Deal budget and there should be no requirement for any additional budget allocation from the councils. For future budgets, a mechanism would need to be agreed to deal with budget allocation from constituent councils to enable the CJC to set its own budget under the Regulations, as it had no direct levying or precepting powers. 

Once the outstanding financial issues were resolved, the intention would be to transfer the functions of City Deal to the CJC in accordance with the original “lift and shift” transitional plan. If these issues were not resolved before the statutory commencement of the CJC functions after the end of June 2022, then the “twin-track” arrangements may need to continue. The councils may then need to make budget provision for the CJC to commence work on the strategic development plan and regional transport plan, as that work could not be undertaken by the Regional Cabinet.

In the longer-term, once the CJC became fully-functional, then decisions would need to be taken regarding its future funding and working arrangements but, for the time being, Cabinet was asked to note the current position and the interim arrangements for the continuation of the City Deal Joint Working Agreement.

Comments of Cabinet Members:

§  Councillor Davies thanked the Leader for the comprehensive explanation of a complex and difficult paper the report. 

§  The Leader in turn thanked all officers involved in the report and appendices, including Kellie Beirne, Programme Board Director of Cardiff Capital Region.

Decision:

That Cabinet:

(a)               Noted the interim governance and delivery model for implementation of the SE Wales Corporate Joint Committee and the ‘twin track’ arrangements proposed across operation of CCR City Deal, alongside initial enactment of a ‘bare minimum’ CJC – and until such time the proposed ‘lift and shift’ approach can occur.

(b)               Noted the requirement for the CJC to set and approve a budget on or before 31January 2022 and the steps set out in the report to enable this.

(c)                Noted the risks and issues set out in the report which required ongoing monitoring, mitigation and management.

(d)               Noted the request made by CCR of Welsh Government to amend the CJC Regulations to change the date on which immediate duties commenced under the Regulations from 28 February 2022 to 30 June 2022.

(e)               Noted the draft Standing Orders at Appendix 1 which set out the initial requirements and operating model for the CJC as well as initial business for the inaugural meeting on 31 January 2022

(f)                 Noted the work ongoing by CCR and its constituent Councils to work with Welsh Government, Audit Wales and advisors as appropriate, to help inform resolution of the remaining issues wherever possible.

(g)               Noted that the Leader would represent the Council on the SE Wales CJC and that they would have a duty to consider and set their first budget at their inaugural meeting on 31 January 2022, in order to ensure that the Council was complying with the legislation as required