GREATER BIRMINGHAM AND SOLIHULL LOCAL ENTERPRISE PARTNERSHIP BOARD MEETING. DRAFT Decision and Action Notes of the Meeting of the Directors held:
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1 GREATER BIRMINGHAM AND SOLIHULL LOCAL ENTERPRISE PARTNERSHIP BOARD MEETING DRAFT Decision and Action Notes of the Meeting of the Directors held: Friday 31 March :30-12:00 hrs University College Birmingham, McIntyre House, Holland Street, B3 1PW ATTENDANCE Steve Hollis (Chair) formerly of KPMG Chris Loughran Deloitte Andrew Cleaves Birmingham Metropolitan College Anita Bhalla Creative City Partnership Matthew Rhodes Encraft Simon Marks Arcadis Saqib Bhatti Younis Bhatti & Co Patrick Hanlon Handelsbanken Mike Hopkins South & City College Cllr Steve Claymore Deputy Leader, Tamworth BC Cllr Richard Grosvenor Leader, East Staffordshire BC Cllr Greg Chance Cabinet Member, Redditch BC Professor Paul Maropoulos Aston University Sophie Drake Story Communications Cllr Gordon Alcott Deputy Leader, Cannock Chase DC Cllr Ian Courts Deputy Leader, Solihull MBC Cllr Michael Wilcox Leader, Lichfield DC IN ATTENDANCE Lesley Bradnam Birmingham CC (Item 5) Roger Mendonca GBSLEP (Items 8 and 9) Nick Glover GBSLEP (Items 13 and 14) Ken Cooper British Business Bank (Item 15) Simon Cunnington British Business Bank (Item 15) Nicola Hewitt Marketing Birmingham (Item 16) IN SUPPORT Katie Trout Sarah Hughes Paul Edwards Nasreen Chaudhry David Furmage Ann Gill APOLOGIES Cllr John Clancy Cllr Bob Sleigh David Eastwood GBSLEP Director GBSLEP Executive GBSLEP Executive GBSLEP Executive GBSLEP Executive Marketing Birmingham Leader, Birmingham City Council Leader, Solihull MBC University of Birmingham Page 1 of 10
2 1 Welcome & Apologies LEP Chair Vice Chancellor Ray Linforth of UCB welcomed Board members to McIntyre House, and described the work and future plans of UCB. The Chair thanked UCB for hosting the Board, and welcomed all present. Apologies were noted from: Cllr John Clancy, Cllr Bob Sleigh, and Sir David Eastwood Notes / Matters Arising from the last meeting Friday 27 January 2017 The LEP Board agreed the draft notes of the last meeting. The following matters arising were outlined: Para 2.4 a Community Interest Company has been formed to manage the Commonwealth Games bid process, and Anita sits on this Board to represent GBSLEP. Origin Sports Group was appointed by the Board as consultants to undertake a feasibility study. The 2022 Games will not be hosted by Durban but there is no clear guidance as yet as to the process to appoint a new host city. A number of cities are showing interest in 2022: Perth, Toronto, and Liverpool / Manchester. Origin Sports have been asked to look at the feasibility of hosting both the 2022 Games and the 2026 event. They will present their final report on the 21st April Para 4 the feedback from Sir John Peace was that he very much enjoyed attending the last GBSLEP Board meeting. Para 7 the Enterprise Zone Investment Plan progress report was endorsed by the Supervisory Board, although as the meeting was not quorate the formal decision will be taken at the next Board on 13th April. Para 12 the Assurance Framework has been agreed by the Accountable Body, was submitted to DCLG for their approval, and will be presented to the Supervisory Board in April. Para 13 the Energy Capital launch event went well with over 300 attendees, and the University of Warwick has since joined the partnership, further strengthening the higher education input. LEP Executive 3. Declarations Of Interest LEP Board 3.1 No declarations of interest were made. 4 Governance Report of the Nominations Committee LEP Executive Katie Trout introduced this item, which included a number of recommendations that the Board discussed in full. The Board approved the appointment of Sophie Drake as NED for Young People, and the Chair and Chris Loughran welcomed her to the Board. The Board agreed that the other short-listed candidates for the Young People s NED should meet with relevant Board Directors for consideration as members of LEP s Pillar and Sub-Boards. Page 2 of 10
3 The Board agreed that in order to maintain a strong Board, when a NED s term of office ends the position is put to the market, with the incumbent having the opportunity to apply again for the role. The Board agreed the draft job description and person specification for the role of Chair of GBSLEP. The Board agreed to appoint headhunters to support the process of recruiting a Chair, and to delegate authority to the Director in consultation with the Chair and Deputy Chair to manage the procurement process and agree the cost. The Board agreed the timeline for recruiting a Chair, taking into account the process for appointing a Mayor for the West Midlands. The Board agreed to appoint Mike Lyons from HS2 Ltd as the Connectivity NED. The Board agreed that a new NED for Digital Connectivity should be appointed and that the recruitment process should be run by the Nominations Committee. The Board agreed that if a new NED is appointed then the Board s membership needs to be increased by one, to a maximum of 21 people, and that LEP Company Members should be asked to approve a change to the Articles of Association. It was agreed that the LEP Executive and Birmingham City Council (BCC) Legal Services should action this process. The Board noted that Anita Bhalla s term of office will end in May 2017, and extend thanks for all of her hard work to date. The Board agreed that the role of NED for Creative and Culture be put to the market, and asked Anita to consider applying for an extension to her term of office. The Board noted that Saqib Bhatti will be the Board s designated lead for engaging with SMEs. The Board agreed that the LEP s Director discuss the role of Company Secretary with the Interim Chief Executive of BCC, when in post. The Board noted that Ian Barnes, International Tax Partner at Deloitte, has become the new Sector Champion for Business, Professional & Financial Services. The Board agreed that a letter of thanks should be sent to Ian s predecessor, Ahmed Farooq, Financial Director at Wesleyan, for his support to the LEP. The Board noted that the Nominations Committee has agreed a Gifts and Hospitality Policy for the LEP, subject to agreement with BCC Legal Services. It was noted that this will be circulated to the Board shortly, and will be implemented from April The Board noted that the Nominations Committee has agreed the incentives policy for the Innovation Challenge Forum. The Board agreed the revised Terms of Reference of the Nominations Committee. The Board noted the nominations to the ESIF sub-committee: Paul Maropoulos (HE representative); Amanda Newbold of Talent Match Staffordshire / Southern Staffs ESB (Employment and Skills representative); David Caro of the FSB (private sector representative). 5 Strategic Economic Plan KPIs LEP Executive Page 3 of 10
4 Lesley Bradnam introduced this item, looking at GBSLEP s performance dashboard and the GBSLEP labour market briefing. The Board noted the good progress against both GVA measures, and that GBSLEP was the top performing core city region LEP for growth in Productivity LEP Board Paul Edwards introduced this item, covering the five key areas of skills, innovation, investment, competition, and entrepreneurship, and the Board discussed productivity issues in some detail. The Board noted the high level challenges surrounding increasing productivity in the GBSLEP area. The Board reviewed the proposed initiatives that could be pursued to improve levels of productivity. The Board agreed that a workshop to enable Board Directors to further discuss productivity, and how GBSLEP can impact upon it, would be of use. This should feed into the work of the WMCA s Productivity and Skills Commission. The Board agreed that a more detailed look at which specific sectors are / are not productive would enable GBSLEP to see where it could take a greater role. 7 Industrial Strategy LEP Board Paul Edwards introduced this item to consider the overall tone of GBSLEP s response to the industrial strategy. This Board noted the high level direction of thinking with regards to the LEP s response to the Government s Industrial Strategy Green Paper consultation, and agreed that the LEP s response should be brief and focussed around the key messages as set out in the report. The Board agreed to delegate final sign-off of the response to the Chair, following consultation with the Strategic Economic Plan (SEP) Steering Group. 8 SEP Business Plan LEP Board Roger Mendonca introduced this item, covering resource allocation, priorities, and staff objectives. The Board noted progress on the Business Plan / Implementation Plan, which is expected to be completed by June. The Board agreed to delegate final sign-off of both plans to the Chair and Deputy Chair for Delivery. 9 Growth Programme Update Programme Board Roger Mendonca introduced this item, to provide an update on the status of the programme, and to consider new management processes. The Board noted that the RAG status of Programme level key issues and risks has improved since the last meeting, but gaps still remain around LEP resourcing and data management. Page 4 of 10
5 The Board agreed to the introduction of Programme Management Fees to help address these issues. The Board agreed the revised delegations for managing change requests more efficiently. The Board agreed that additional underspend is transferred to the new Revolving Investment Fund. The Board noted its thanks to the Programme Team for improving the management of the Programme and to Birmingham City Council officers for their work on developing the RIF, actively reprofiling projects and being an active member of the Programme Board. The Board agreed the operational terms of reference for the Revolving Investment Fund (RIF). The Board noted that Pipeline development is moving on, and that the Programme Delivery Board (PDB) has approved two full business cases: Hagley Road SPRINT and Ashted Circus. 10 WMCA Update WMCA 10.1 Katie Trout introduced this item The Board noted recent developments in relation to the West Midlands Combined Authority (WMCA), particularly the setting up of a Growth Company covering the three-lep geography, and the associated request for nomination of Board members. The Board agreed that Chris Loughran should be nominated as a member of the Growth Company Board. The Board agreed to put forward nominations for other members of the Growth Company Board to the Chair by Friday 7 April. 11 Midland Engine Update Midlands Engine Katie Trout introduced the Midlands Engine update report, and Chris Loughran reflected on the Midlands presence at MIPIM. The Board noted recent developments in relation to the Midlands Engine, including the launch of the Midlands Engine Strategy and the partnership s plans to respond to it. The Board noted wording in the Strategy had caused some communication challenges in in relation to project funding. The Board received a short video presentation of the Midlands presence at MIPIM, and noted that the event had been very successful from a Midlands perspective. The Board noted its thanks to the organisers and sponsors of the Midlands presence at MIPIM. 12 Alignment of GBSLEP, WMCA, and the Midlands Engine LEP Board 12.1 Steve Hollis introduced this item, to consider how activities across the region can complement and connect with each other, and this was discussed in detail by Board Directors The Chair noted that there is now a complex (sub) regional Page 5 of 10
6 governance picture with the LEPs, the WMCA and the Midlands Engine which is causing confusion for the business community and residents. A discussion followed with Directors expressing their views It was noted that there is a huge communications task ahead of us to explain the differences between the three structures, the added value they create and how they will operate together. It was noted that it would be helpful for the Midlands Engine to focus on 4 to 5 key themes where better outcomes would be delivered by working together, as has been the case with Midlands Connect. It was acknowledged that this will be an ongoing discussion that should come back to the Board at a future time. 13 Place Workstream Update Place Board Simon Marks and Nick Glover introduced this item, to give a detailed update of key activities within the place agenda. The Board noted the commissioning of three programmes of work by the Place Board Spatial Plan for Growth; Towns & Local Centres Strategy; Housing Affordability, Needs, and Tenure Framework and received an update on progress to date. The Board noted the publication of the report by the independent West Midlands Combined Authority (WMCA) Land Commission. The Board noted the publication by Government of the Housing White Paper and the key proposals it sets out, and agreed to delegate authority to Simon Marks to respond to the Housing White Paper on behalf of the LEP Board. Board Directors noted that: addressing the housing shortfall would need political solutions; co-ordination would be required to ensure the appropriate infrastructure was in place to enable housing developments; and additional work would be required to ensure the viability of former industrial sites. 14 Urban Growth Company UK Central Plan LEP Board Chris Loughran and Nick Glover introduced this item, which included a short video of the UK Central project. This video was also provided to Board Directors on a USB stick. The Board noted that Chris Loughran formally endorsed the proposals detailed in the UK Central Hub Growth & Infrastructure Plan on behalf of the LEP Board, under delegations received at the LEP Board meeting in December The Board noted the formation of the Urban Growth Company s Partners Board, and the invitation extended to GBSLEP, and agreed that Chris Loughran represents the LEP Board on the Partners Board. 15 Midlands Engine Investment Fund Midlands Engine 15.1 The Board received a presentation on the Midlands Engine Investment Fund from Simon Cunnington and Ken Cooper of British Business Bank (BBB). Page 6 of 10
7 The Board noted that BBB will be working with 10 LEPS across the Midlands Engine area, and that launch events will take place after the Mayoral election. The Board requested that a slick application process be established with clear criteria and quick decision-making. The Board noted its thanks to Pat Hanlon for all his hard work in the establishment on the MEIF. 16 FDI Update LEP Board Nicola Hewitt introduced this item, which covered the expected impact of Brexit on FDI figures, as well as activities proposed to secure additional inward investment. The Board noted that, despite the work undertaken by Business Birmingham to reposition the region s offer to maintain investment levels following the Brexit vote, it is anticipated that FDI numbers for 2016/17 will be substantially lower than compared to previous years. The Board noted that contract arrangements in place for 2016/17 to 2018/19 mean that there is no lead generation activity planned for the LEP area for the targeting of advanced engineering or automotive companies, or large companies outside of Birmingham. The Board approved in principle a LEP contribution of up to 50,000 per annum to fund lead generation with large companies and advanced manufacturing and automotive firms in 2017/18 and 2018/19, potentially matched by Birmingham City Council. This funding would be drawn from the retained levy allocated to the LEP in the Business Rates Pool. The Board agreed that the Supervisory Board is asked to endorse this proposal. The Board agreed to delegate authority to the LEP Director to determine the actual level of contribution from the LEP, to agree targets, and to commission the work with Marketing Birmingham. The Board noted its thanks to Nicola Hewitt and the Marketing Birmingham team for their work at MIPIM. 17 Creative Economy Strategy LEP Board Anita Bhalla introduced this item, which covered plans to develop a Creative Economy strategy for the GBSLEP area. Anita also welcomed David Furmage to the GBSLEP executive team. The Board noted that BBC3 will be coming to the area, and we will be looking to them to drive innovation and skills development. The Board noted that the Secretary of State has confirmed that Channel 4 will not be privatised, but Government will consult on its relocation out of London. The Board agreed to support the development of a strong economic case to bring the channel to the West Midlands and agreed to provide funding from the GBSLEP s allocation of the retained levy of the Business Rates Pool, subject to the agreement of the Supervisory Board. It agreed to delegate responsibility to the Chair, the LEP Board NED, and the LEP Director to agree how much funding Page 7 of 10
8 should be allocated with final approval from the Supervisory Board Chair. The Board agreed the development of a Creative Economy Strategy for Greater Birmingham & Solihull to stimulate growth across all sectors, strengthen our cultural offer, and improve Greater Birmingham s status in order to become a top global city region. The Board agreed to fund up to 20K from the retained levy of the Business Rates Pool to map sector businesses and provide an evidence base for future investments and shared work with the Combined Authority, and agreed that the Supervisory Board should be asked to endorse the proposal. The Board agreed the proposed timeline to develop and consult on the Creative Economy Strategy. The Board noted that GBSLEP is also involved in developing a creative strategy for the Combined Authority The Board noted that the Creative City Partnership will be re-launched with a new name and re-balanced sub-sector membership. Employment and Skills Work Programme, including Apprenticeship Levy Andrew Cleaves introduced this item, which provided an update on activities within the Employment and Skills agenda. The Board noted that this remains an important agenda for the LEP, and that Andy Gannon has started work this week as GBSLEP s Interim Executive Manager for People. It also noted that Lee Wetherley is now chairing the North Worcestershire Employment and Skills Board (ESB) and Simon Dingle the Birmingham one. The Board agreed to support the Framework Approach, which will develop the ESB Big Ticket Items more fully into proposals over the next couple of months. The Board approved the GBSLEP Apprenticeship Reform and Levy Communications Plan that has been developed by the ESB. The Board supported the proposal to contribute c. 30,000 to the cost of an Interim Executive Manager for People (plus any expenses and equipment), and supported the proposal to contribute 14,500 p.a. for two years for a part time resource to the Southern Staffordshire Employment and Skills Board, to be paid from the GBSLEP s retained levy in the Business Rates Pool. The Board agreed that the Supervisory Board should be asked to endorse these decisions. The Board noted that a review of the ongoing resource requirements for the employment and skills agenda will be undertaken, and a further report brought to the LEP Board in due course. Employment and Skills Board 19 Communications and Engagement, including Annual Conference LEP Executive Katie Trout introduced this item, which covered communications activities, as well as a proposed change to the date for the Annual Conference. The Board noted communications activity since the last report, covering press and PR, stakeholder engagement, and social media activity. Page 8 of 10
9 19.3 The Board noted developments with the creation of the new corporate website and the WMCA Proposition Project The Board noted future communications and engagement activities The Board agreed to publish the Annual Report in June as planned, but to postpone the Annual Conference until September / October This will allow sufficient time to appoint a new Chair for GBSLEP and will enable there to be greater clarity on how the LEP s forward plan aligns with that of the new Mayor and the Midlands Engine. 20 LEP Executive Finance Report LEP Executive Katie Trout introduced this item, which covered GBSLEP s current financial position. The Board noted the current position with the LEP Executive s operating budget. The Board noted that the LEP Executive submitted an application to government for 500,000 Core Funding on 28 February The Board noted that 157,515 interest has been accrued against the Local Growth Fund and that proposals to invest the funds will be presented at the next Board meeting in June. The Board noted that an operating budget for 2017/18 and 2018/19 will be presented at the next Board meeting in June. The Board approved a further contribution of up to 50,000 from the Core Fund to secure Marketing Birmingham s services until the end of June 2017, including support for the website redevelopment and the production of the Annual Report. 21 Conflicts of Interest LEP Board 21.1 The Board noted the conflict of interest for Paul Maropoulos. 22 Notes of Meetings Pillar and Sub- Boards 22.1 The Board noted the decisions and actions of the Employment and Skills Board, the Innovation Sub Board, the Place Board, and the Planning Sub Group. 23 AOB The Board noted its thanks to Mark Rogers, who has left the post of Chief Executive at Birmingham City Council for all his support with taking forward the GBSLEP s agenda and his work as Company Secretary. The Chair updated the Board on the outcome of a meeting he and other LEP Chairs had with the Prime Minister on Tuesday before she made a speech at the Qatari Investment Conference. At the meeting outlined the following priorities: increasing levels of exporting (especially for SMEs); creating more patient capital; articulating a clear long-term vision and identifying key enablers through the Industrial Strategy; developing the UK s role as a bridge between the US and the EU; development of supply chain opportunities, and social Page 9 of 10
10 inclusion so the everyone feel the benefits of economic growth. She took away from the meeting the need for better engagement between the Department for Education and LEPs. Item 2 Page 10 of 10
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