Agenda item

Report of the Director of Regeneration and Economy

Cabinet considered a report of the Director of Regeneration and Economy, which would also be considered by Council on 19 March, 2024, which indicated that the UK Government has invited the West Midlands Combined Authority (WMCA) to prepare a proposal for a West Midlands Investment Zone (WMIZ). The sectoral focus for WMIZ will be advanced manufacturing, which is an excellent fit with the One Coventry Plan ambition to increase the economic prosperity of the city and region. A total of £160m in funding is available for WMIZ over a ten-year period, and this will be used for tax incentives for investors in WMIZ sites, capital funding to prepare these sites for development, and revenue schemes designed to develop the target sector. The WMIZ proposals will also allow business rates growth on designated sites to be retained locally for 25 years for reinvestment in the development of the Advanced Manufacturing Sector. Business rates will be retained above existing levels on a “no detriment” basis such that no Local Authority will be worse off through its involvement in the WMIZ.

The WMIZ includes sites in Coventry/Warwick, Birmingham and Wolverhampton. There are four sites in Coventry and Warwick District; Whitley East in Coventry and Whitley South, Coventry Airport and Segro Park in Warwick District. Whitley East has been allocated as an employment site in the Coventry Local Plan. The WMIZ £160m budget includes an initial £23m for infrastructure works to prepare the Coventry Airport site for development, and this report seeks approval to accept that funding together with any additional funding that becomes available from the IZ budget up to a total value of £35m. The report also sought delegated approval to enter into a Memorandum of Understanding for business rates retention related to the Whitley East site.

Governance decisions for WMIZ will be taken by a WMIZ Joint Committee / Board which Coventry City Council, Warwick District and Warwickshire County Council will all be represented on. West Midlands Universities including Coventry University and University of Warwick are also non-voting members of this group. A Coventry and Warwickshire Investment Zone office group will meet to ensure that consistent briefings are provided to Coventry and Warwickshire members of the WMIZ Joint Committee / Board.

RESOLVED

That Cabinet:-

1)  Notes the aspirations of, and supports the principle of participation in, the West Midlands Investment Zone (WMIZ) proposed to benefit the WMCA area and Warwick District, conditional upon there being agreed no detriment position in respect of business rates income.

2)  Notes the governance arrangements for the WMIZ as set out in Appendix 2 to the report.

3)  Agrees in principle to entering into a Memorandum of Understanding (MoU) regarding business rates and their retention across the WMCA area and the Warwick District Council (WDC) area and delegate authority to the Director of Finance and Resources (s151) and the Cabinet Member for Strategic Finance and Resources to enter into this agreement.

That Cabinet recommends that Council:-

4)  Approves acceptance of up to £35m in West Midlands Investment Zone (WMIZ) funding, noting that initially £23m will be available for infrastructure provision on the Coventry Airport site (subject to the conditions of the grant being satisfactory).

5)  Grants delegated authority to the Director of Regeneration and Economy, following consultation with the Director of Finance and Resources, the Director of Law and Governance, and Cabinet Member for Jobs, Regeneration and Climate Change, to:

a)  Undertake all necessary due diligence in relation to acceptance of the WMIZ funding allocation.

b)   Continue to negotiate on all the matters associated with this report and to take such action as is deemed necessary, incidental or ancillary to or in consequence of bringing into effect the recommendations contained in this report, including but not limited to entering into any associated legal agreements (including the authority to effect any lease variations/surrender and any associated documents if appropriate) that are necessary to deliver the West Midlands Investment Zone.

6)    Authorises the addition to the 5 Year Capital and/or Revenue Programme (as appropriate) of any West Midlands Investment Zone funding received by the Council up to a maximum of £35m.