Issue - meetings

The report and appendices are attached.

Councillor Butlin introduced the report and provided an overview of the Warwickshire Recovery and Investment Fund (WRIF). He stated that, prior to the outbreak of coronavirus, economic growth in Warwickshire had been strong; recovery from the effects of the Pandemic was a key priority for the Authority.

Councillor Butlin stated that the Pandemic had severely impacted upon levels of employment and productivity in Warwickshire. In response, a recovery plan had been devised which included development of WRIF which would have the capability to intervene effectively to provide targeted financial support to local businesses.

Councillor Butlin emphasised the scale of WRIF. The initiative would make use of the Council’s own financial resources as well its ability to borrow at a cheap rate. This provided a means to enact measures to stimulate the economy at a critical time.

Councillor Butlin requested that the Committee scrutinise proposals, including economic output, governance, and legal and financial considerations. The view of the Committee would be reported to Cabinet prior to presentation of the relevant aspects of proposals to full Council. The launch of the scheme was proposed to coincide with the lifting of restrictions. WRIF would seek to mitigate the impact of the cessation of the Coronavirus Job Retention Scheme (and other government support) and provide employment opportunities for individuals facing redundancy.

Councillor Butlin outlined the aims of the proposals. WRIF would be a policy response to economic recovery, it was not orientated to generate substantial returns. However, any surpluses generated by the end of the five-year scheme could be taken forward for reinvestment in a modified form.

Councillor Butlin stated that WRIF was subject to a high level of governance. It would be vital to enact measures to ensure that taxpayers’ money was managed wisely. It was an ambitious project to improve the quality of life in Warwickshire and promote economic recovery.

Rob Powell (Strategic Director, Resources) summarised the work undertaken to date. It was intended that WCC make use of its financial resilience to accelerate delivery of the organisation’s policy objectives and address the economic impact of COVID-19. Investment would be targeted to drive the Warwickshire economy of the future. He stated that the WRIF was a closed fund, with a five-year timescale and a maximum investment by the Council of £140million. This sum had been ringfenced; Cabinet would make a judgement whether to recommend proposals to full Council in July 2021.

Rob Powell stated that WRIF had been developed with input across service areas, including Economy & Skills, Finance, and Governance & Policy. Engagement with the Chamber of Commerce, Local Enterprise Partnership, Local Growth Hub and others had confirmed the need for intervention. This was not a speculative initiative; it sought to address a known gap in access to finance for businesses.

Rob Powell stated that the WRIF report had been shared with the External Auditor, Grant Thornton (who, helpfully, had been the auditors of recent public interest reports), to test the thinking and development of these proposals. A subsequent conversation with the Assistant  ...  view the full minutes text for item 5