Purpose

To clarify the respective decision-making responsibilities of the Investment Board and Combined Authority Board in relation to financial, investment and operational transport decisions and to ensure a clear, consistent and robust approach to determining the appropriate decision making route.

In particular, the amendments clarify the operation of the £40 million approval threshold within the Investment Board Terms of Reference and confirm the Investment Board's authority to determine operational matters, including the application, continuation, variation or cessation of funding or subsidy arrangements, where these fall within an approved budget or funding envelope.

Decision

To approve amendments to the Investment Board Terms of Reference to clarify their respective decision-making responsibilities in relation to strategic investment, financial approvals and operational transport matters.

The amendments to the Investment Board Terms of Reference:
• clarify that the £40 million threshold applies to the aggregate value of the Combined Authority's financial commitment, funding, investment or exposure in relation to a scheme, project or programme, and not to the total value of the wider scheme;

• provide that related or connected Combined Authority financial commitments must be considered cumulatively when assessing whether the threshold is met;

• include provisions to prevent schemes, projects or programmes being divided, phased or otherwise structured for the purpose of circumventing the threshold;

• provide that, where there is uncertainty regarding the application of the threshold or whether commitments are related or connected, the appropriate approval route shall be determined by the relevant Director in consultation with the Monitoring Officer and Section 73 Officer (or their representatives); and

• make consequential amendments to reflect these changes throughout the Terms of Reference.

The effect of the amendments is to provide greater clarity regarding the respective roles of the Investment Board and the Combined Authority Board. The Investment Board remains responsible for strategic investment and financial approvals within its delegated remit, including the determination of operational matters and the associated application, continuation, variation, or cessation of funding or subsidy
where those decisions fall within an approved budget or funding envelope. Where additional financial provision or an increase to an approved financial commitment is required, the appropriate financial approval route will continue to apply.

Alternative options considered

Option 1 -
Option 2 -
Option 3 -