Agenda, decisions and draft minutes

To note any apologies for absence.

Apologies were received from:-

·       Neal Cockerton (Flintshire County Council)

·       Aled Jones-Griffith (Grŵp Llandrillo Menai)

·       Professor Edmund Burke (Bangor University) with Paul Spencer deputising

·       Yana Williams (Coleg Cambria)

·       Dafydd Gibbard (Cyngor Gwynedd) with Sioned Williams deputising

·       Rhun ap Gareth (Conwy County Borough Council) with Amanda Hughes deputising

·       Alwen Williams (Portfolio Director)

·       Wendy Boddington (Welsh Government Observer) with Bryn Richards deputising

To receive any declarations of Personal Interest

A declaration of personal interest was received from Councillor Gary Pritchard for Item 10 as he was a board Member of Menter Môn and Menter Môn Morlais Ltd as Isle of Anglesey County Council Leader. He noted that he believed that it was a prejudicial interest and he withdrew from the meeting for the discussion.

To note any items that are a matter of urgency in the view of the Chairman for consideration.

No urgent matters were raised.

The Chair shall propose that the minutes of the meeting held on 06 December 2024 be signed as a true record.

The Chair signed the minutes of the previous meeting, held on 6 December 2024, as a true record.

Dewi Morgan (Host Authority Head of Finance and Statutory Finance Officer) and Sian Pugh (Host Authority Assistant Head of Finance) to present the report.

1.     To note and accept the NWEAB's end of December 2024 revenue review.

2.     To note and accept the NWEAB's reserves update.

3.     To agree the NWEAB's revised capital expenditure profile.

The report was presented by the Host Authority's Head of Finance Department and Assistant Head of Finance Department.

RESOLVED

1.     To note and accept the NWEAB's end of December 2024 revenue review.

2.     To note and accept the NWEAB's reserves update.

3.     To agree the NWEAB's revised capital expenditure profile.

REASONS FOR THE DECISION

To note a projected underspend of £205,405 against the revenue budget in 2024/25. The final underspend at the end of the financial year would be used to reduce the amount claimed from the North Wales Growth Deal Grant.

To note a further slippage on the capital programme, with an estimated expenditure of £12.51m in 2024/25 compared to an approved budget of £24.67m for the year.

DISCUSSION

It was estimated that there would be an underspend of £205,000 by the end of the current financial year.

Details were given of the fields from which that underspend derived, explaining that an underspend of £43,000 was estimated in the budget of the Portfolio Management Office, confirming that the main reason for this was that the true salary inflation was approximately 3% compared with 6% estimated earlier in the financial year. It was elaborated that an extension in the budget of the Shared Prosperity Fund until March 2025 had allowed the use of underspend on the 'Plans' budget to fund the costs of three officers instead of using the core budget. Attention was drawn to the fact that an extension to March 2025 had also been accepted on the Local Area Energy project and the relevant overspend would be funded by the grant funding.

It was also explained that an underspend of £17,000 was anticipated in the 'Support Services' budget, as well as an underspend of £34,500 in the 'Joint Committee' budget.

It was reported that a net overspend of £181,000 was seen in the 'Projects' budget with approximately £136,000 of it being an overspend on external legal support costs which was essential for many of the capital programme projects. It was elaborated that the projects' 'Business Case Development' budget within this budget overspent by £86,000. It was confirmed that a £152,000 contribution from the 'Projects' budget had funded a proportion of the Smart Local Energy project.

It was confirmed that the main income streams for this financial year included contributions from partners, the North Wales Growth Deal Grant revenue allocation, the Welsh Government Energy grant, the North Wales Corporate Joint Committee staff secondment, the Shared Prosperity Fund, as well as the 'Projects' fund and the reserves fund.

It was explained that the surplus of £205,000 anticipated in the budget for this financial year was being used to reduce a contribution from the Growth Deal Grant required for this year. It was confirmed that this contribution would be transferred to the 2025/26 budget.

Pride was expressed that it was estimated that a total of almost £211,000 would be in the general reserves fund at the end of this financial year. It was elaborated that there was no money in the  ...  view the full minutes text for item 5.

Alwen Williams (Portfolio Director) to present the report.

1.     To agree to the principle that the Senior Responsible Owner and Portfolio Director roles should be separated (subject to HR advice) and undertaken by different
individuals and note the proposed split of duties and responsibilities.

2.     To request a nomination from one of the six local authority Chief Executives to act as Senior Responsible Owner (SRO) for the North Wales Growth Deal with a view to
confirming this appointment at the next meeting, which has been programmed for 4 April 2025.

3.     To agree the changes to Lead Member responsibilities across the Growth Deal.

The report was presented by the Head of Operations in the absence of the Portfolio Director.

RESOLVED

1.     To agree to the principle that the Senior Responsible Owner and Portfolio Director roles should be separated (subject to HR advice) and undertaken by different
individuals and note the proposed division of duties and responsibilities.

2.     To request a nomination from one of the six local authority Chief Executives to act as Senior Responsible Owner (SRO) for the North Wales Growth Deal with a view to confirming this appointment at the next meeting, which has been programmed for 4 April 2025.

3.     To agree the changes to Lead Member responsibilities across the Growth Deal.

REASONS FOR THE DECISION

To seek the Economic Ambition Board’s approval to separate the role of SRO and Portfolio Director in response to the new requirement from the government. 

DISCUSSION

It was explained that the report presented amendments to the North Wales Growth Deal's governance structure, following guidance from the Governments to separate the roles of the Portfolio Director and the Senior Responsible Owner (SRO). Members were reminded that all these responsibilities had currently been accomplished by the current Portfolio Director. It was confirmed that the guidance from the Governments made it a requirement for two different individuals to undertake these roles to increase accountability and provide additional leadership capacity.

A formal nomination was requested for one of the local authorities' Chief Executives to act as the SRO for the North Wales Growth Deal in order to be able to conduct a formal vote on that nomination at the next meeting of this Board.

It was noted that the report provided details on specific roles of the Lead Members, reminding members that five of the Leaders were responsible for one of the Growth Deal's programme fields to provide a connection between the Ambition Board and the Programmes' Boards. It was explained that the Chair would not be responsible for a particular programme in the future to ensure that they focused on general strategic matters, with the Lead Roles being allocated to the five other Leaders. Attention was drawn to the fact that there were amendments to the Board membership in the past year and new appointments were proposed to the Growth Deal Programmes’ Lead Roles as follows:

·       Councillor Mark Pritchard - Strategic matters to deliver the Growth Deal

·       Councillor Charlie McCoubrey - Agri-food and Tourism Programme

·       Councillor Dave Hughes - Advanced Manufacturing Innovation Programme

·       Councillor Jason McLellan - Land and Property Programme

·       Councillor Gary Pritchard - Low Carbon Energy Programme

·       Councillor Nia Jeffreys - The Digital Programme.

Details were given on the fact that there was no change to the Lead Member for the Agri-food and Tourism, Land and Property and Low Carbon Energy Programmes to ensure continuation in the work that the Members had been completing over the last few years. It was explained that the decision had been made to offer the Digital Programme to Cyngor Gwynedd's Lead Member due to the digital connection difficulties and  ...  view the full minutes text for item 6.

Dewi Morgan (Host Authority Head of Finance and Statutory Finance Officer) and Sian Pugh (Host Authority Assistant Head of Finance) to present the report.

1.     To approve the 2025/26 Revenue Budget.

2.     To approve the funding contributions to include the partner contributions, local
authorities’ supplementary contributions and partner interest contributions.

3.     To approve the Capital Budget for the Growth Deal.

4.     To approve the transfer of the interest received on the North Wales Growth Deal
grant balances in 2024/25 and 2025/26 to a specific reserve to fund additional government requirements, retention of the Portfolio Management Office capacity for an additional two years as well as project development costs.

The report was presented by the Host Authority's Head of Finance Department and Assistant Head of Finance Department.

RESOLVED

1.     To approve the 2025/26 Revenue Budget.

2.     To approve the funding contributions to include the partner contributions, local
authorities’ supplementary contributions and partner interest contributions.

3.     To approve the Capital Budget for the Growth Deal.

4.     To approve the transfer of the interest received on the North Wales Growth Deal
grant balances in 2024/25 and 2025/26 to a specific reserve to fund additional government requirements, for retention of the Portfolio Management Office capacity for an additional two years as well as project development costs.

REASONS FOR THE DECISION

In order to operate effectively within the funding available, the NWEAB requires an annual budget to be approved.

Appendix 1 sets out the proposed budget per expenditure heading and the corresponding funding streams for the year.

DISCUSSION

It was explained that the main budget of the Portfolio Management Office funded 22.75 posts, noting that two of those posts were additional posts specifically for the Digital and Smart Local Energy projects. It was also noted that a budget had been set for two non-executive directors in order to reflect the requirements of both governments. ⁠Similarly, the budgets, costs and interest contributions for Support Services, the North Wales Corporate Joint Committee, Projects and Transfers to funds matters were explained.

Attention was drawn to the fact that financial contributions from partners had increased 1.5% to reflect the out-turn inflation for 2024/25, an allowance for changes in the threshold and percentage of national insurance and the estimated salary inflation for 2025/26. However, it was confirmed that supplementary contributions from the Local Authorities had continued to be £40,000 each.

Members were guided through some of the financial contributions, confirming:

·       That the £1.35million total Growth Deal Grant had been allocated for revenue expenditure.

·       £116,000 from the Digital and Smart Local Energy projects was allocated to fund two specific posts.

·       ⁠£60,000 was capitalised on staff costs as they undertook specific work on projects.

·       ⁠The additional government posts and the costs of project developments were funded by £412,000 from the Interest Fund.

·       Approximately £61,000 was earmarked from the Reserves Fund, ensuring that £150,000 remained in that fund.

A summary of the budget for 2025/26 was provided, as well as draft budgets for the 2026/27 and 2027/28 financial years. It was explained that the additional government posts, an extension on staff contracts until March 2028 and some of the costs for project developments were funded by the interest which would be received on the Growth Deal balances during the 2024/25 and 2025/26 financial years. It was estimated that the total costs over these three financial years would be £2.7million. It was confirmed that the £3.6million of interest received until 2023/24 would continue to be used to reduce any borrowing costs in the future.

Attention was drawn to the capital budget, noting that it would be reviewed during the year as business cases were approved. A profile for the 2021/22 to 2034/35  ...  view the full minutes text for item 7.

Hedd Vaughan-Evans (Head of Operations) to present the report.

1.     To note the Quarter 3 Performance Report and updated Portfolio Risk Register. 

2.     To approve the submission of the Quarter 3 Performance Report to Welsh
Government and UK Government, as well as the local authority scrutiny committees.

3.     To ask the Portfolio Management Office for a further report on projects that it is anticipated will not be deliverable within their proposed timeframes, at the next Board meeting which is programmed for 4 April 2025. ⁠ ⁠

The report was presented by the Head of Operations in the absence of the Portfolio Director.

RESOLVED

1.     To note the Quarter 3 Performance Report and updated Portfolio Risk Register. 

2.     To approve the submission of the Quarter 3 Performance Report to the Welsh
Government and UK Government, as well as the local authority scrutiny committees.

3.     To ask the Portfolio Management Office for a further report on projects deemed not to be deliverable within their proposed timeframes, at the next Board meeting which is programmed for 4 April 2025.

REASONS FOR THE DECISION

Quarterly reporting on progress against the North Wales Growth Deal is a requirement of the Final Growth Deal Agreement. Following consideration by the Ambition Board, the reports would be shared with the Welsh Government, UK Government and the local authority scrutiny committees.

DISCUSSION

A number of events were reported that had been highlights over the past few months, such as the approval of requests for change and Outline Business Cases, good progress in constructing and renovating sites, the appointment of Umi and WCVA consultants to develop projects, receiving valuable responses to consultations and starting on the engagement work for new projects.

Attention was drawn to the fact that six projects currently reported red, including:

·       Connecting the Few Last %

·       NEW – H2

·       Trawsfynydd

·       Holyhead Gateway

·       Kinmel Studio

·       Glynllifon Rural Economy Hub

It was confirmed that the Risk Register continued to be consistent with what was seen in the second quarter of 2024/25. It was elaborated that the residual risk on the public sector investment had reduced as a result of Full Business Cases under the guidance of public sector sponsors, being approved by this Board recently.

A report was requested at the next meeting for a further update on those projects that the officers did not believe could be achieved within their proposed timetables.

The external agencies and partners were thanked for their cooperation to attempt to find ways to develop these projects, especially on the Holyhead Gateway and Holyhead Hydrogen Hub projects.

The 'Communication and Engagement' performance status within the Risk Register was challenged, drawing attention to the fact that it currently performed as green. It was elaborated that it referred to press releases, social media and the website, and the actual communication was taken into account, considering whether the residents of north Wales were aware of the importance and work of the Ambition Board. In response to the observations, the Head of Operations confirmed that thorough engagement and communication work had been achieved, namely through events, podcasts and social media, noting that this was balanced carefully with the work of the Board. It was acknowledged that capacity and availability were challenging when considering undertaking more duties in this field and therefore that partners also worked together to promote the work of the Board. It was felt that the public's understanding of the Board's work had improved over the last few years, emphasising that it would continue to improve as more projects were delivered  ...  view the full minutes text for item 8.

The Chair shall propose that the press and public be excluded from the meeting during the discussions on the following items due to the likely disclosure of exempt information as defined in Paragraph 14 of Schedule 12A of the Local Government Act 1972 Information relating to the financial or business affairs of any particular person (including the authority holding that information).

There is an acknowledged public interest in openness in relation to the use of public resources and related financial issues. It is also acknowledged that there are occasions, in order to protect the financial and commercial interests that matters related to such information need to be discussed without being publicised. The reports deal specifically with financial and business matters and related discussions. Publication of such commercially sensitive information could adversely affect the interests of the bodies and the Councils and undermine the confidence of other Growth Deal participants in sharing sensitive information for consideration. This would be contrary to the wider public interest of securing the best overall outcome.

RESOLVED to exclude the press and public from the meeting during the discussion of Items 10-13 as it is likely that exempt information will be disclosed as defined in Paragraph 14 of Annex 12A of the Local Government Act 1972 - Information regarding the financial or business transactions of any particular person (including the authority holding such information).

There was an acknowledged public benefit in being open about the use of public resources and related financial issues.  It was recognised, however, that there were occasions in order to protect public financial and commercial interests, where such information must be discussed without being publicised. The reports related specifically to financial and business matters and related discussions. Publication of such commercially sensitive information could adversely affect the interests of the bodies and the Councils and undermine the confidence of other Growth Deal participants in sharing sensitive information for consideration.  This would be contrary to the wider public interest of securing the best overall outcome.

Hedd Vaughan-Evans (Head of Operations) and Dafydd Jones (Agri-food and Tourism Project Manager) to present the report.

1.     To approve the Final Business Case for the Cydnerth project which is subject to Menter Môn Morlais Ltd addressing the outstanding issues set out in the report.

2.     To authorise the Portfolio Director in consultation with the Chair, Vice Chair, Section 151 Officer and the Monitoring Officer to agree and enter into a funding agreement with Menter Môn Morlais Ltd for the delivery of the project.

3.     To note that the proposed funding model for the project is a 100% commercial loan and approve that, once the cost of loan payments for the loan element has been paid off, the interest from the loan is allocated to a reserve fund to be used to fund the Portfolio Management Office in the coming years.

4.     To request an update report on the project's progress in 6 months with further details of fees, budgets and timescales.

The report was presented by the Head of Operations and the Energy and Net Zero (Hydrogen) Project Manager.

DECISION

1.     To approve the Final Business Case for the Cydnerth project which is subject to Menter Môn Morlais Ltd addressing the outstanding issues set out in the report.

2.     To authorise the Portfolio Director in consultation with the Chair, Vice-chair, Section 151 Officer and the Monitoring Officer to agree and enter into a funding agreement with Menter Môn Morlais Ltd for the delivery of the project.

3.     To note that the proposed funding model for the project is a 100% commercial loan and approve that, once the cost of loan payments for the loan element has been paid off, the interest from the loan is allocated to a reserve fund to be used to fund the Portfolio Management Office in the coming years.

4.     To ask for a progress update report on the project in six months with further details regarding fees, budgets and timetables.

REASONS FOR THE DECISION

To seek the Ambition Board's approval of a Final Business Case for the Cydnerth project.

DISCUSSION

The report was discussed.

David Mathews (Land and Property Programme Manager) to present the report.

1.     To approve the Full Business Case for the Parc Bryn Cegin project.

2.     To confirm the delegated authority made on 6 December 2024 to the Portfolio Director in consultation with the Chair, Vice-chair, Section 151 Officer and the Monitoring Officer to approve and enter into the Joint Venture Agreement.

The report was submitted by the Land and Property Programme Manager.

DECISION

1.     To approve the Full Business Case for the Parc Bryn Cegin project.

2.     To confirm the delegated authority made on 6 December 2024 to the Portfolio Director in consultation with the Chair, Vice-chair, Section 151 Officer and the Monitoring Officer to approve and enter into the Joint Venture Agreement.

REASONS FOR THE DECISION

To seek the Portfolio Board's approval for the Full Business Case for the Parc Bryn Cegin project.

The Board approved the project's Outline Business Case on 6 December 2024. The Land and Property Programme Board and the Portfolio Board approved the Full Business Case in January 2025.

As there was no grant funding agreement for this project, the Joint Venture would act as a legal agreement between Ambition North Wales and the Welsh Government.

DISCUSSION

The report was discussed.

Elliw Hughes (Growth Deal Programme Manager) to present the report.

1.     To approve the Outline Business Case for the Responsible Adventures project, subject to Welsh and UK Government approval of the assurance process undertaken, as well as Zip World addressing the issues set out in the Report.

2.     To request a⁠ further report to address three specific concerns before inviting a ⁠ Full Business Plan for the Responsible Adventures project, and inviting the company to greet these within a 3 month period; specifically:

·       To provide a developed Local Benefits Scheme following engagement with the local communities;

·       To prepare a Strategy and operational principles for the e-bus;

·       To provide a progress report on the Engagement Plan

3.     To delegate the final approval of the procurement specifications and social value criteria to the Portfolio Director, in consultation with the Chair, Vice-chair, Section 151 Officer and Monitoring Officer prior to commencement of procurement.

4.     To authorise the Portfolio Director, in consultation with the Section 151 Officer and the Monitoring Officer, to agree draft terms in accordance with this report, to be approved by the Economic Ambition board as the basis for the final funding arrangements for the project which will formally form the basis of the Grant Offer Letter agreed by the Board at the Full Business Case stage.

The report was presented by the Growth Deal Programme Manager.

DECISION

1.     To approve the Outline Business Case for the Responsible Adventures project, subject to Welsh and UK Government approval of the assurance process undertaken, as well as Zip World addressing the issues set out in the Report.

2.     To ask for a further report to address three specific concerns before inviting a Full Business Case for the Responsible Adventures projects, and inviting the company to greet these within a 3-month period; specifically:

·       Provide a Local Benefits Scheme developed following engagement with the local communities;

·       Prepare a Strategy and operational principles for the e-bus;

·       Provide a progress report on the Engagement Plan

3.     To delegate the final approval of the procurement specifications and social value criteria to the Portfolio Director, in consultation with the Chair, Vice-chair, Section 151 Officer and Monitoring Officer prior to commencement of procurement.

4.     To authorise the Portfolio Director, in consultation with the Section 151 Officer and the Monitoring Officer, to agree draft terms in accordance with this report, to be approved by the Economic Ambition Board as the basis for the final funding arrangements for the project which will formally form the basis of the Grant Offer Letter agreed by the Board at the Full Business Case stage.

REASONS FOR THE DECISION

To seek the Ambition Board's approval for the Full Business Case for the Responsible Adventures project.

DISCUSSION

The report was discussed.

Elliw Hughes (Growth Deal Programme Manager) and Dafydd Jones (Agri-food and Tourism Project Manager) to present the report.

1.     To agree to the change request for the Glynllifon Rural Economy Hub project and subject to the remaining matters, ask Grŵp Llandrillo Menai to undertake the necessary activity to submit the relevant business cases for consideration.

2.     To confirm that the revised scope of the project will be achieved within the current funding allocation for the project and that no further funding for the project will be provided from the Growth Deal as a result of this change.

3.     To support the principle of considering a separate project in the future for the delivery of the incubators and ask the Portfolio Management Office to continue discussions with interested parties to explore this option.

The report was presented by the Head of Operations and the Growth Deal Programme Manager.

DECISION

1.     To agree to the change request for the Glynllifon Rural Economy Hub project and subject to the remaining matters, ask Grŵp Llandrillo Menai to undertake the necessary activity to submit the relevant business cases for consideration.

2.     To confirm that the revised scope of the project will be achieved within the current funding allocation for the project and that no further funding for the project will be provided from the Growth Deal as a result of this change.

3.     To support the principle of considering a separate project in the future for the delivery of the incubators and ask the Portfolio Management Office to continue discussions with interested parties to explore this option.

REASONS FOR THE DECISION

To seek approval of the request to change the Glynllifon Rural Economy Hub project.

DISCUSSION

The report was discussed.