Issue - meetings

Report of the Chief Executive

The Cabinet considered a report of the Chief Executive which sought endorsement of the Coventry and Warwickshire City Deal and approval of the cost sharing proposals for local authority partners.

Coventry and Warwickshire was one of 20 areas that were invited to take part in the second wave of City Deals.  The purpose of City Deals was to drive local economic growth and jobs with each one a “bespoke” agreement between a local area and central Government that reflected the different needs of the local area’s functional economic geography.

The Coventry and Warwickshire City Deal (the City Deal) focused on the advanced manufacturing and engineering sector and aimed to promote sustained economic growth and create jobs in the sub region.  The City Deal would establish a Coventry and Warwickshire Business Support Clearing House that would deliver a range of bespoke business support services to support local businesses to grow and create local jobs by assisting them to invest in skills; supporting innovation through better access to research and development; and by supporting them to access both finance and development opportunities.

The Clearing House would be a subsidiary company limited by guarantee of the Coventry and Warwickshire Local Enterprise Partnership (CWLEP).  The Clearing House Managing Director would report directly to the CWLEP, who would manage the day to day operations.  Councils through the Joint Committee would be able to hold the CWLEP to account on the outcomes of the Clearing House. The accountable body would be a Local Authority given responsibility for the funding used to support the City Deal.

The expected outcomes of the City Deal included over 15,000 new jobs by 2025 (including 8,800 in the advanced manufacturing and engineering sector); support for growth in 450 companies; and a new motor test track for the automotive sector at Fen End in Warwickshire.  The City Deal included £25m of public sector investment and over £67m of private sector investment.

After extensive negotiations the Coventry and Warwickshire City Deal has been agreed between central Government and CWLEP; the seven local authorities in Coventry and Warwickshire and Hinckley and Bosworth Borough Council.  As part of the City Deal the eight local authorities will set up a Joint Committee to provide robust governance arrangements for the City Deal. 

The proposed local authority financial contribution to the City Deal was a total of £1,123,202 made up from contributions from all eight local authorities. Coventry City Council’s contribution of £0.48m and Warwickshire County Council’s contribution of £0.53m make up the most of the funding, with each of the District Councils contributing to the rest. The funding allocation was set out in more detail in appendix 2 to the report.

RESOLVED that the Cabinet recommend that Council:

1.  Agree that Coventry City Council should formally endorse the Coventry and Warwickshire City Deal set out in Appendix 1.

2.  Approve the cost sharing proposal as recommended by the Chief Financial (section 151) Officers of the City Deal local authority partners as detailed in the  ...  view the full minutes text for item 116