To agree the principle of Herefordshire Council investing in an initiative where the council is in partnership with Herefordshire and Worcestershire Group Training Association (HWGTA) to enable further development of vocational work based skills across the county, and to authorise the Director of Resources and Assurance in consultation with the Portfolio Holder for Community Services and Assets to sign Heads of Terms for both parties to agree the principles and to further explore options around a strategic investment partnership, and bring a business case back to cabinet for approval in autumn 2023.

Cabinet Members considered a report to agree the principle of Herefordshire Council investing in an initiative where the council is in partnership with Hereford and Worcester Group Training Association Ltd (HWGTA) to enable further development of vocational work based skills across the county.

The Leader welcomed the Chief Executive of HWGTA who was in attendance at the meeting.

The Cabinet Member Community Services and Assets introduced the report and highlighted:

• HWGTA had been training apprentices and delegates to develop skills, knowledge and behaviours for 56 years, making a significant contribution to the Herefordshire economy. The centre had been so successful that it had outgrown its current operating centre and there was a requirement for a new centre to enable growth.
• HWGTA approached the council to see if the council would like to explore an investment opportunity with the association based on some shared objectives around developing local people, increasing skills in the county and ultimately driving up productivity and economic growth.
• Herefordshire Council’s County Plan had some clear objectives around skills development and work with organisations to be more creative in how the Council use and share its collective assets, increase local investment, encourage the development of new businesses and explore new methods of financial support.
• By enabling HWGTA to grow and develop through investment, jobs will be created and a more local skilled workforce will develop which in turn will attract business opportunities into Herefordshire.

Cabinet members discussed the report and it was noted that:

·       The cabinet were supportive of the proposal and that it aligns with the county plan, addresses the skills shortage and it would bring better paid jobs to Herefordshire. 

·       It was suggested the recommendation be amended to explicit that a full business case would be produced and for it to include a full environmental impact assessment.

·       It was highlighted that more communication was needed in advertising that apprenticeships are not just for the young but for all ages.

·       The heads of terms would be agreed on the basis there are no revenue budget pressures on the council and that the investment model that would be prepared as part of the business case would also be on the basis there were no budget pressures.  No risks had been identified as the proposal was at a very early stage.

Group leaders welcomed the report. In response to queries raised it was noted that;

·       Dialogue between the council, HWGTA and Skylon Park had been ongoing since 2020 and the project was now at a point where it is able to progress;

·       As part of the Big Economic Plan the council would engage with businesses to understand their challenges and how best the council can support them.

·       The full business case would consider the equality dimensions in terms of the training opportunities that are provided but the detail would sit within the HWGTA business model.

It was unanimously resolved that:

a)    authority is delegated to the Director of Resources and Assurance in consultation with the Portfolio Holder for Community Services and Assets to sign Heads of Terms between Herefordshire Council and HWGTA for a partnership to enable further development of vocational work based skills across the county;

b)    Cabinet authorises the development of an options appraisal to inform a full business case of an investment model most appropriate to allow the project to progress and bring that back to cabinet for further authorisation in autumn 2023; and

c)    authority is delegated to the Director of Resources and Assurance in consultation with the Portfolio Holder for Community Services and Assets to take all operational decisions relating to the above recommendations.