Agenda and minutes

There were no disclosable pecuniary interests.

(a)  To agree the minutes of the previous meeting held on 21^st November 2024.

(b)  Any matters arising

The minutes of the meeting held on 21^st November 2024 were agreed and signed as a true record.

There were no matters arising.

To consider whether to exclude the press and public for the private item(s) of business for the reasons shown in the report.

RESOLVED that the press and public be excluded under Section 100(A)(4) of the Local Government Act 1972 for the consideration of the following private reports on the grounds that the reports involve the likely disclosure of information defined in Paragraphs of Schedule 12A of the Act as indicated, and that in all circumstances of the cases, the public interest in maintaining the exemption outweighs the public interest in disclosing the information:

Report of the Director for City Services and Commercial and Director for Coventry Municipal Holdings Limited

The Coventry Shareholder Committee considered a joint report of the Director for City Services and Commercial and the Director for Coventry Municipal Holdings Limited, which set out details of the audited accounts for the years ending 31^st March 2023 and 31^st March 2024 for the Coventry Municipal Holdings Group. 

The Committee noted that the report had also been considered by the Scrutiny Co-ordination Committee at its meeting on 6^th March 2025 (their minute 80/24 refers) and the Audit and Procurement Committee on 17^th March 2025 (their minute 63/24 refers).  A briefing note from the Scrutiny Co-ordination Committee indicating its support of the recommendations within the report was circulated at the meeting.

The Coventry Municipal Holdings Limited (CMH) manages the commercial interests of the wholly owned Council investments in a number of arm’s length company investments, including:

·  Tom White Waste Limited (TW) and Subsidiaries: A&M Metals, TW(LACo) (the Teckal company)

·  Coombe Abbey Park Limited and subsidiaries: No Ordinary Hospitality Management (NOHM) Coombe Abbey Park (LACo) (the Teckal company)

·  Coventry Technical Resources Limited (CTR)

·  Coventry Regeneration Limited (CR_

·  No Ordinary Hotels Limited (effectively a dormant company)

A key legal document called the Group Governance Agreement (GGA) was developed to provide the governance framework for CMH, the parent for the Council’s wholly owned investments.  The GGA stipulates that CMH should produce an Annual Performance Report looking back at the operation of the Group to the year-end.  The Committee noted that the annual report would be presented to Coventry Shareholder Committee each year with the published accounts being presented to Audit and Procurement Committee. 

This report submitted looked at the years ending 31^st March 2023 and 31^st March 2024 for the CMH group of companies based on their audited accounts which were available at Companies House.  Tom White Waste and Coventry Municipal Holdings Group received an extension for filing granted to the 31^st March 2025 and, as such, although they have been approved by the Board of Directors, they may not yet appear on Companies House.  The accounts for all other companies would be available at Companies House. 

The accounts for the year ending 31^st March 2023 for Tom White Waste Limited Group, Coventry Technical Resources Limited and Coventry Regeneration Limited were previously presented to Audit Committee on the 29^th January 2024.

There were a number of challenges with regards to the financial position for the subsidiaries in the group with the leisure sector recovering from the impact of Covid-19 and Tom White experiencing additional operating costs, higher material disposal costs, together with the correction historic accounting practices.  These factors have affected the financial performance as set out in the report.

RESOLVED that, the Coventry Shareholder Committee:

1.  Considered and noted the comments received from the Scrutiny Co-ordination Committee and Audit and Procurement Committee.

2.  Noted the financial position as reported in the Annual Accounts for the Companies to 31^st March 2023 and 31^st March 2024.

Report of the Director of Finance and Resources

The Coventry Shareholder Committee considered a report of the Director of Finance and Resources, which set out the business plan for the Coventry and Warwickshire Growth Hub for 2025/26.

The Coventry and Warwickshire Growth Hub (CWGH) has been established since 2014 and is firmly integrated as part of a successful Coventry and Warwickshire economic area – providing a ‘one stop’ centre for local businesses, with advice and guidance on the most appropriate support for their needs.

The Business Plan outlined the plan for the financial year 2025/26, detailing income and operating costs for the ‘core’ Growth Hub which demonstrated a balanced position.  There were limited risks with the company balance sheet and CWGH had sufficient resources to meet liabilities as they fell due. The Council was not responsible for meeting liabilities in its role as shareholder as CWGH is a private limited company.

Primary objectives and priorities for the period of the Business Plan remained unchanged with the CWGH focussed on accessing and supporting sub-regional small and medium-sized enterprises (SMEs), plugging them in to relevant and available support partners and their programmes, such as those funded through the UK Shared Prosperity Fund.  Appendix 1 of the report set out the Coventry and Warwickshire Growth Hub Business Plan for 2025/26.  The Income and Expenditure Summary 2025/26 for the Coventry and Warwickshire Growth Hub was detailed at Appendix 2.

RESOLVED that, the Coventry Shareholder Committee approve the Coventry and Warwickshire Growth Hub Business Plan and the Coventry and Warwickshire Growth Hub Income and Expenditure Summary for 2025/26 for the financial year 1^st April 2025 to 31^st March 2026, attached at Appendix 1 and 2 of the report submitted.

Report of the Director of Regeneration and Economy and Director of Innovation

The Coventry Shareholder Committee considered a joint report of the Director of Regeneration and Economy and the Director of Innovation, which set out the Business Plan for 2025/26 for the Strategic Energy Partnership.

The fifteen-year Strategic Energy Partnership (SEP) between the Council and E.ON was the first of its kind in the UK and had the potential to put Coventry at the forefront of the net zero transition.  The Council’s relationship with E.ON would help support the development of ground-breaking projects, with potential funding from E.ON as well as other sources.

A key piece of work shared in the November 2024 update, was the development of the Coventry Energy Plan. The plan provided a strategic long-term energy vision for the city, giving a detailed understanding of the energy challenges and opportunities looking to the next 15 years and beyond. The Coventry Energy Plan was being used to shape and prioritise the most impactful projects taken forward by the SEP in the years ahead, including in the 2025/26 Annual Business Plan. 

Key outputs outlined in the Annual Business Plan that the SEP intends to deliver in 2025/26 include a public sector building decarbonisation programme, starting with schools (60+ schools, delivered over a number of years); subject to successful planning permission, further development of a solar farm; exploration of a project to explore supply and demand of low cost, affordable heat at scale, recognising the opportunities presented by heat network expansion, heat zoning and energy storage and fleet decarbonisation in the City.

A pipeline of innovation programmes had been developed, and innovation projects were underway which supported the most vulnerable. This included a pilot battery storage and time of use tariff which supported customers to reduce their bills (9 installed and further 25 in pipeline) and a drone energy efficiency survey pilot to help identify residents eligible for grant funding to improve energy efficiency.

Around £1.3m had been committed in social value delivery including engagement with school children in 18 schools, care leavers work placements and a community growing project in Hillfields, Willenhall and Stoke.  All of which provided a strong foundation to leverage this initial activity into future projects, including those of a larger scale which would deliver tangible impacts for Coventry.

Annual investment in the SEP was expected to grow from £1.9m (from inception in September 2023 to March 2025), to £12.6m in 2025-26. The greenhouse gas emissions avoided by SEP activities were forecast to reach over 4,000 tonnes CO2e a year from 2027/28 and continue to grow from there. That’s the equivalent of 100,000 return trips from Coventry to London in an average car or planting 160,000 trees.

Both SEP partners are contributing resource to the partnership. This included a significant team from E.ON (13FTE. c£2.3m 25/26), above and beyond that to which E.ON committed in its bid, comprising a dedicated full time team plus experts from across E.ON who are brought in for specific projects and initiatives. The Council has a minimum annual commitment of 2.5FTEs who  ...  view the full minutes text for item 18.

Report of the Director of Finance and Resources

The Coventry Shareholder Committee considered a report of the Director of Finance and Resources, which sought approval of the UKBIC Business Plan for 2025/26.

A corresponding private report detailing confidential financial matters was also submitted for consideration (Minute 22 below referred).

The UK Battery Industrialisation Centre (UKBIC) Limited is a state of the art, 20,000m2 battery manufacturing research and development facility on Rowley Road which was formally opened in July 2021. UKBIC is an open access facility designed to allow UK manufacturers to trial and industrialise the next generation of batteries for electric vehicles and other applications, which is essential to the UK’s net zero ambitions.

Between November 2017 and October 2019, the Council approved the acceptance of £114m grant funding from Innovate UK’s Faraday Battery Challenge towards the total cost of £132m to develop the UKBIC facility.  The remaining £18m was provided in the form of a loan from the West Midlands Combined Authority (WMCA), with repayments secured through an arrangement put in place with UKBIC Ltd ensuring that the Council is put in funds. 

The Faraday Battery Challenge was established by government in 2018 to invest in research and innovation projects, and facilities, to drive the growth of a strong battery business in the UK. Securing UKBIC in the Coventry area is critical to the future of the area’s world-class automotive and advanced manufacturing cluster.

UKBIC Ltd (company no. 11227726) was established in order to operate the facility.  The Council owns 100% of the shares in UKBIC Ltd and has two Council directors who sit on the board, including the Chair.  The remaining board seats are made of up of the UKBIC Managing Director and Finance Director, a representative from Government’s Advanced Propulsion Centre (APC) and independent battery / automotive industry experts. In addition, a Faraday Challenge Director attends the board as an observer.

The Faraday Battery Challenge would review and approve the UKBIC Ltd business plan on a regular basis to ensure that the business was sustainable and that it would meet the technology needs of the UK automotive industry, and was currently providing core operational funding to UKBIC Ltd. From 2025/26 onwards, funding for Faraday Challenge and therefore UKBIC (working capital) funding would come from the Department for Business and Trade (DBT).

The Council does not provide any ongoing funding for UKBIC, but it did provide a one-off short term £500k loan in 2021 which is being repaid in line with expectations, and due to be fully repaid by 2027.

RESOLVED that, subject to the consideration of the additional confidential information contained within the corresponding Private report, Coventry Shareholder Committee approve the UKBIC Business Plan.

Report of the Director of Finance and Resources

The Coventry Shareholder Committee considered a report of the Director of Finance and Resources, which sought approval of business plans for Coventry Municipal Holdings Limited (CMH) and its subsidiaries.

A corresponding private report detailing confidential financial matters was also submitted for consideration (Minute 23 below referred).

CMH was incorporated in November 2021 as an intermediary parent company within the Council’s group structure. As required by the Group Governance Agreement (GGA), CMH along with its subsidiaries, present their Business Plans for the year ahead ending 31st March 2026. The report submitted had been prepared to summarise the key points, with the detailed plans appended to the corresponding private report.

The Business Plans set out some of the operational and forecast financial position for the current year and the budget for next year which, in accordance with the GGA, requires Coventry Shareholder Committee approval to proceed.  This Business Plan covered the following companies:

·  Coombe Abbey Park Limited (CAPL), the company that operates Coombe Abbey Park Hotel via a long lease from the Council, and subsidiaries:

·  No Ordinary Hospitality Management (NOHM), undertakes management contracts for third parties and provides the trading name for operations within the hospitality and leisure sector.

·  Coombe Abbey Park (LACo), a Teckal company set up to enable contracts to be directly awarded by the Council.

·  Coventry Technical Resources (CTR), provides resourcing solutions to the Council via contractual arrangements.

·  Coventry Regeneration Limited (CR), set up during the construction of Coventry Arena and continues trading with minimal transactions to preserve historic tax assets which may be usable in the future.

·  No Ordinary Hotels Limited (effectively a dormant company)

·  Tom White Waste Limited (TW), a commercial waste company, and subsidiaries:

·  A&M Metals & Waste, supports the waste management and recycling activities of the parent company. The company has ceased trading and management plan to liquidate the company in the foreseeable future.

·  Tom White Waste (LACo), a Teckal company set up to enable contracts to be directly awarded by the Council subject to demonstrating best value.

RESOLVED that, subject to the consideration of the additional confidential information contained within the corresponding Private report, Coventry Shareholder Committee approve:

1.  The Business Plans for Coventry Municipal Holdings Limited which includes Coventry Technical Resources and Coventry Regeneration.

2.  The Business Plan for No Ordinary Hospitality Management group.

3.  The Business Plan for Tom White group.

4.  The group budget for Coventry Municipal Holdings Limited and its subsidiaries.

There were no other items of public business.

Report of the Director of Finance and Resources

(Listing Officer S. Weir, email: stephen.weir@coventry.gov.uk)

Further to Minute 19 above, Cabinet considered a private report of the of the Director of Finance and Resources, which set out the commercially confidential matters relating to the approval of the UKBIC Business Plan for 2025/26, included at Appendix 1 of the report submitted.

RESOLVED that, the Coventry Shareholder Committee approve the UKBIC Business Plan included at Appendix 1 of the report submitted.

Report of the Director of Finance and Resources

(Listing Officer P. Mudhar, email: parminder.mudhar@coventry.gov.uk)

Further to Minute 20 above, Cabinet considered a private report of the of the Director of Finance and Resources, which set out the commercially confidential matters relating to the approval of business plans for Coventry Municipal Holdings Limited (CMH) and its subsidiaries.

The report summarised the key points with detailed plans appended to the report.

RESOLVED that, the Coventry Shareholder Committee approve:

1.  The Business Plans for Coventry Municipal Holdings Limited which includes Coventry Technical Resources and Coventry Regeneration.

2.  The Business Plan for No Ordinary Hospitality Management group.

3.  The Business Plan for Tom White Waste group.

4.  The Group budget for Coventry Municipal Holdings Limited and its subsidiaries.

There were no other items of private business.