Agenda and minutes

There were no disclosable pecuniary interests.

To consider whether to exclude the press and public for the item of private business for the reasons shown in the Briefing Note

RESOLVED that the Scrutiny Board agrees to exclude the press and public under Sections 100(A)(4) of the Local Government Act 1972 relating to the private item referred to in Minute 25 below headed ‘Heatline District Heating Update’ on the grounds that the report involves the likely disclosure of information as defined in Schedule 12A of the Local Government Act 1972. The grounds for privacy are that it refers to information relating to an individual and the financial or business affairs of an organisation and the amount of expenditure proposed to be incurred by the Council under a particular contract for the supply of goods or services. The public interest in maintaining the exemption under Schedule 12A outweighs the public interest in disclosing the information.

(a)  To agree the Minutes of the meeting held on 22^nd October 2025

(b)  Matters arising

The Minutes of the meeting held on 22 October, 2025 were agreed and signed as a true record.

There were no matters arising.

Briefing Note of the Director of Regeneration and Economy

The Scrutiny Board considered a Briefing Note of the Director of Regeneration and Economy, together with a comprehensive presentation at the meeting, which provided details against the key objectives of the Economic Strategy and Skills Strategy that were launched in late 2022, as well as the Coventry and Warwickshire Economic Plan, which was approved in March 2025.

The Briefing Note provided context to the current economic position in the UK and the challenging business environment over the past twelve months, which has been reflected in the UK labour market.  Unemployment has risen from 4.0% in August 2024 to 5.0% in September 2025. Over that time, the claimant count in Coventry has fallen from 14,065 to 13,660, suggesting that the local labour market remains robust in the face of national challenges.

The Briefing Note indicated that the Skills Strategy was launched in November 2022. It takes a holistic approach to the skills system from early years through to lifelong learning to achieve the best outcomes for Coventry residents and businesses. It serves as a ‘Framework for Action’ with partners learning and developing creative solutions to skills challenges together to meet three Strategic Ambitions and eight priority areas within them.

The presentation highlighted the following key achievements of the Skills Strategy:-

·  Achieved full West Midlands Combined Authority (WMCA) /Coventry City Council co-commissioning commitment (from April, 2026)

·  Enabled Coventry College’s Ofsted “Good” rating

·  Supported over 1,600 residents into high-quality paid employment

·  Launched the Green Skills Roadmap (January, 2025) and built momentum in key areas

·  Expanded Primary Schools Aspirations – February’s Primary Aspirations Week engaged 1,000 plus children in person and 2,500 plus online

·  Summer Holiday Food Activity Skills Clubs

·  Implemented Coventry Alternative Provision (CAP) Model – Rollout of a graduated, multi-tired framework offering tailored support for students struggling in mainstream education

·  Ensured a region-leading Adult Education Service: in the 2024/25 academic year, Coventry Adult Education supported over 7,500 learners (exceeded WMCA target)

·  Taken action on graduate retention through Coventry University “Discover Coventry” programme

The Briefing Note indicated that the Economic Development Strategy was launched in October 2022 and acts as the framework for creating a strong and resilient economy. The Strategy covered 8 priority areas.

The presentation highlighted the following key achievements of the Economic Development Strategy:-

·  Delivered 257 engagements with Coventry SMEs between April and September 2025 – 91% of the 2025/26 target of 283

·  Allocated £306k of the £628k SME capital grant fund in the first 6 months of 2025/26

o  £106k already claimed by Coventry SMEs, resulting in £176k additional investment

o  Followed £1.148m of grants being claimed in 2024/25, after Coventry City Council was awarded £450k top-up due to high demand – created 66 new jobs

·  Delivered 23 energy audits to Coventry SMEs in the first 6 months of 2025/26 to reduce carbon emissions, with 13 audits currently in progress

o  Follows 151 completed audits in 2024/25

o  Businesses now need to use 25 MWH electricity per year to quality for support`

·  In 2024/25, Coventry and Warwickshire attracted  ...  view the full minutes text for item 21.

Report of the Scrutiny Co-ordinator

The Scrutiny Board noted the Work Programme and outstanding issues for 2025/26, including the provisional date of 4 March, 2026 for the visit to UK BIC.

Briefing Note of the Director of People

The Scrutiny Board considered a Briefing Note of the Director of People and Facilities, together with a comprehensive presentation at the meeting, which provided an update on the funding of Heatline to date, its historic performance and future proposals for the network. The Scrutiny Board also considered a corresponding private Briefing Note which contained commercially sensitive information relating to this matter (Minute 25 below refers).

The Coventry Heatline district heat network currently supplies recovered heat from the Energy to Waste (EfW) Facility on London Road to 9 city centre buildings including 3 offices, 2 sports facilities, a Museum, a Hotel, the Cathedral and a Student Accommodation Block via its 4km network of underground pipework. 

The presentation covered:-

·  The existing contract arrangements:-

o  Coventry District Energy Company (CDEC) responsible for:-

§  Recovering heat from steam

§  Distributing heat to customers

§  Generating any additional heat required by customers

§  Selling heat to customers

o  A summary of the concession contract

§  25 year operating concession

§  Due to expire in 2038

§  Contract procurement allows for maximum term until 2045

§  CDEC fully responsible for operating and maintenance costs

§  “Super profits” protection with profit share mechanism

·  A breakdown of Heatline Funding-

o  Original network total cost - £5.6m

o  To date 35% public sector financed

o  CDEC has been the largest investor in Heatline to date

·  The financial performance to date:-

o  Key outcomes (reviewed 2024 compared to 2012 financial model:-

§  Revenues have been lower and operating costs have been higher

§  Increased capital investment for same customer demand

§  Net operating profit is lower than originally forecast

o  Key factors:

§  Lower inflation than allowed for

§  Slower buildout of Friargate Business District

§  Unexpected maintenance at Bar Road

·  Current activities to address – Renewed efforts to expand the network by supporting customers with funding bids which will treble the customer demand connected to the network by 2028.

·  Forecast breakdown of investment – extending the concession to 2043 enables significant grant funding to be accessed. This rebalance of investment profile will enable CDEC financial performance to move back towards original expectations without contributions coming from Coventry City Council.

·  Social Value Impacts:-

o  Avoidance of carbon emissions

o  To date 14,716 tCO2 avoided

o  Following expansion – 7,300 tCO2/year

o  Direct workforce

o  Indirect workforce

·  Impact of forthcoming legislation

The Scrutiny Board asked question, made comments and sought assurances on a number of issues, including:-

·  Information relating to financial elements of the contract. It was noted that the requested information regarding the “super profit” element of the contract would be circulated to the Scrutiny Board.

·  Further information and explanation in relation to the proposals and funding to extend the current network to 11 Coventry University buildings, 2 Ministry of Justice court buildings and 6 new public sector connections in Hillfields. The Scrutiny Board also noted that City Centre South and the Friargate regeneration areas were also expected to connect as they build out. The expansion of the network  ...  view the full minutes text for item 23.

There were no other items of urgent public business.

Briefing Note of the Director of People

(Listing Officer: Lowell Lewis – Email: Lowell.lewis@coventry.gov.uk)

Further to Minute 23 above, the Scrutiny Board considered a private Briefing Note of the Director of People and Facilities, together with a comprehensive presentation at the meeting, which set out the confidential commercial and financial matters relating to the Heatline District Heating update.

RESOLVED that having considered the information contained in the corresponding public Briefing Note, the Business, Economy and Enterprise Scrutiny Board (3):-

1)  Notes the information provided about the current status of the Heatline District Heat Network.

2)  Notes the forthcoming changes to the context of heat networks in the UK.

3)  Notes the proposed extension of the Concession Contract to 2043 to enable grant support to be maximised.