Agenda item

S Sykes presented a paper to provide the Board with the latest performance information on Business Recovery and Growth programmes being delivered on behalf of the MCA.

The Board noted that the MCA currently has thirty-eight projects which fall within the remit of the Business Recovery and Growth Board.  The schemes are funded from various funding streams with a total value of £83.93m.

The expenditure baseline for 2021/22 was initially set at £19.49m with the latest forecasts suggesting outturn expenditure of £22.10m.  This level of expenditure would be generating a material overspend of £2.61m.  The slight increase was due to the addition of new capital projects. 

Of this value, £3.04m (13%) was funded from conditional grant from government, and consents would likely to be required to roll-forward the funding to future periods.

A table at paragraph 2.1 of the paper presented highlights of the forecast full-year expenditure profiles set against the baseline targets and the current forecast against claims received to date. 

Due to the COVID-19 pandemic, the Capital Schemes had experienced delays in Job creation outputs, with delays of up to 12 months currently being experienced. 

In addition, there had been slower than forecast pace of the Gainshare and Made Smarter schemes.  The MCA was proactively engaging government on the status of the programmes, seeking flexibilities where they may be available. 

The Board noted that close monitoring was on-going.  Full programme reviews, where they had not already commenced, would be undertaken.

S Sykes provided assurances that the MCA did not currently foresee any serious issues with regards to project spend claims for the financial year 2021/22. 

A graphic at paragraph 2.4 of the paper highlighted that, of the thirty-eight projects in the portfolio, 50% are in delivery with a value of £23.01m with six schemes with a value of £22.36m approved and in contract negotiation. 

Appendix A to the paper provided the Board with an update on progress of these schemes.

Councillor Turpin asked if the Board could be provided with details of all the thirty-eight projects (segmented to show capital and revenue projects) which fall within the remit of the Business Recovery and Growth Board.  ACTION: S Sykes. 

Councillor Turpin raised concerns that the Employers RAP funding stream was making slow progress.  He queried if the underspends could be utilised to fund a further round of capital schemes. 

In response, S Sykes said that the funding stream was a revenue fund and that, the MCA’s Business Team were currently reviewing current RAP projects and working on proposals for the use of this funding stream. 

Following discussion, the Board requested G Sutton to provide a full overview of the current funding positon at the next formal Board meeting.  ACTION: S Sykes via G Sutton.

The Co-Chairs raised concerns and expressed frustration around the delays in the MCA’s internal approval processes when the Board had approved a clause in a project contract.  S Sykes agreed to feedback to the MCA Executive Team.  ACTION: S Sykes.

The Chair asked if further details could be provided in relation to ‘Overage Clauses’, which the Board were being asked to agree.  ACTION: S Sykes.

RESOLVED – That the Board considered the performance information provided.