Agenda item

To consider a report by the Head of Legal, HR and Democratic Services (copy attached)

The Leader, Councillor Hugh Evans, introduced the Final Growth Deal report (previously circulated), for Council to reach Final Deal Agreement for the North Wales Growth Deal with the UK Government and Welsh Government.

In 2016, the North Wales Economic Ambition Board (NWEAB) adopted a Growth Vision for the Economy of North Wales.  That vision was subsequently adopted by all 6 North Wales Councils.  Based on the Growth Vision Strategy, a Growth Deal bid was prepared and agreed by all the partners, including Denbighshire County Council, working with both the UK and Welsh Government and the private sector in October 2018.  In November 2019, the NWEAB and the Welsh and UK Governments agreed the Heads of Terms, for a Final Deal Agreement to be completed towards the end of 2020.

The NWEAB were committed to achieving Final Deal Agreement with both Governments before the end of December 2020.

On 24 November 2020, Cabinet considered the documents, attached to the report, and the recommendation of Partnerships Scrutiny Committee that Cabinet and Council should endorse and approve the documents required to complete the Final Growth Deal.   Cabinet resolved to endorse the documents necessary to complete the Final Growth Deal and approved those parts of Governance Agreement 2 that related to executive functions.  Cabinet recommended that Council formally approve the documents as set out in the report.

The Leader reiterated the aim of the Growth Deal to build a more sustainable and resilient economy in North Wales in partnership with public and private sectors, supported by £240m funding from the UK and Welsh Governments over the next 15 years. The Growth Deal aimed to deliver investment of up to £1.1bn in the North Wales economy to create 3,400 – 4,200 new jobs and generate £2 – £2.4bn in net additional GVA by 2036. The Leader delivered a joint presentation with the Corporate Director: Economy and Public Realm; Head of Legal HR and Democratic Services and Head of Finance covering areas of the Growth Deal.

It was confirmed that Gwynedd County Council were the host and accountable body.

During discussions, the following points were raised:

·         Councillor Paul Penlington expressed concerns regarding the percentage of nuclear power within the documentation.  Officers confirmed that nuclear power was not a significant part of the projects.  Wind power, hydrogen etc., were also power projects contained within the project.  Officers stated they did not have any concerns regarding nuclear energy.

·         There had been political commitment to the £240m government funding and discussions with both governments had been ongoing on matters of detail with no indication that the funding commitment would be withdrawn. However, there was no legal commitment to providing those funds until the Deal was signed.

·         Officers explained the funding calculations for partner contributions confirming that region wide projects were equally funded but for individual projects for which specific partners would receive greater benefit (building/asset etc.) they would be expected to pay for the borrowing requirement associated with that project.

·         Concerns regarding rural areas not being highlighted within the Growth deal were raised and the Leader and officers confirmed there were other funding stream available for rural areas.  Rural areas will be invested in but not directly through the Growth Bid.

·         All decisions made by the NWEAB would be published by each Local Authority.  A Quarterly report would be produced and would attend twice a year at Scrutiny Committee.

Following discussions, the Leader proposed the recommendations, seconded by Councillor Julian Thompson-Hill and a vote took place.

A majority of members voted in favour of the report, 2 members abstained and 4 members voted against the report.  Therefore, it was

RESOLVED:

·         That Council approves the Overarching Business Plan as the document that sets out the arrangements to deliver the North Wales Growth Deal as the basis for entering into the Final Deal Agreement and acceptance of the Grant Funding Letter with the UK and Welsh Governments.

·         That Council approves the provisions in Governance Agreement 2 relating to non-executive functions and specifically adopts the arrangements for Scrutiny set out in “Governance Agreement 2: Schedule 3” thereof as the basis for completing the Final Deal Agreement and acceptance of the Grant Funding Letter with the UK and Welsh Governments.

·         That Council authorises the accountable body, Gwynedd Council, to sign the Grant Funding Offer letter on behalf of the Partners.

·         That Council approves the method used to calculate the cost of borrowing notionally required to facilitate the negative cash flow for the Growth Deal, and to include a provision within the Council’s budget to pay this contribution and the established core and supplementary contributions as set out in GA2 (and in paragraphs 5.5 - 5.7 of the template report attached as part of Appendix 1).

·         That Council grants the Chief Executive delegated authority in consultation with the Leader, Monitoring Officer and Section 151 Officer to agree minor changes to the documents with the Partners as necessary to complete the agreement.

·         That Council confirms that it has read, understood and taken account of the contents of the Denbighshire County Council  Well-being Impact Assessment attached as Appendix 2 as part of its consideration.