Issue - meetings

Report of the Deputy Chief Executive (Place)

The Cabinet considered a report of the Chief Executive that set out proposals to ensure West Midlands Combined Authority (WMCA) was able to enter into the necessary agreements with Government to amend existing statute, enabling WMCA to borrow for all of the functions attributable to it and also endorse the proposed changes to the Key Route Network.

Following the establishment of the WMCA in June 2016, the Council agreed a Scheme for the transfer by government of powers to the Combined Authority. This scheme then underwent a period of public consultation and was ultimately submitted to government. Whilst the Combined Authority were given most of the powers sought it was not possible to agree with HM Treasury the relevant borrowing powers at that time. It currently had powers across a broad range of areas but only had the legal ability to borrow in relation to transport related expenditure.

The Cities and Devolution Act 2016 amended previous legislation so that in addition to borrowing for transport functions, a Combined Authority may borrow in relation to “any other functions of the authority that are specified for the purpose of [section 23(5)] in regulations made by the Secretary of State”. Such functions included Mayoral and non-Mayoral functions. Such regulations may only provide borrowing powers for a particular function of the Mayoral WMCA if all the Constituent Councils consent. In light of this, WMCA have been in dialogue with HM Treasury and Department for Communities and Local Government with a view to commencing the process to obtain the necessary powers and consents WMCA needed to undertake all of its functions.

Approval from the constituent authorities and WMCA was being sought by the end of January 2018 with a view to legislation being laid to enable to the order to be made.

RESOLVED that the Cabinet:

1)  Confirms the transfer of borrowing powers to the Combined Authority and provides delegated authority to the Chief Executive, following consultation with the Director of Finance and Corporate Services and Monitoring Officer, to approve the amendment to statutory regulations authorising the WMCA borrowing powers as set out in this report, subject to:

a)  The additional borrowing powers sought being fully aligned to the WMCA’s statutory functions as detailed within the West Midlands Combined Authority Orders.

b)  Approval of the WMCA borrowing cap suggested by HM Treasury as outlined within this report.

2)  Gives delegated authority to the Chief Executive, following consultation with the Leader of the Council, to approve the amendment to the Key Route Network as detailed within this report.