Agenda item

The Cabinet considered a report on the Worcestershire 5G Consortium. The details were set out in the report.

In the ensuing debate, the following principal points were raised:

·         The Cabinet Member for Economy and Infrastructure introduced the report and commented that the DCMS had committed £4.81 to Phase One of the 5G Testbed and Trials Programme in the county. As a public body, the County Council would be able to claim back 100% of eligible costs incurred on the project. The programme was being led by the County Council with the support of the WLEP. Of the six successful bids nationally, Worcestershire 5G Consortium was the only site to be led by a County Council. This project could give Worcestershire businesses the opportunity to be at the forefront of innovative new technologies with the help of the WLEP and some of the bigger employers in the county. 5G would be an improvement over 4G with faster broadband

·         The opportunity to bring employment to the Malvern area was welcomed. This was an exciting project and highlighted successful partnership working. It would show-case Worcestershire as a centre of excellence especially in relation to cyber security and robotics

·         The Worcestershire 5G Consortium was the only project that included a unique blend of advanced manufacturing and cyber security, as well as the inclusion of an education element provided by the Heart of Worcestershire College. This project was at the forefront of new wave of technology and would provide a boost to productivity

·         This project was a great example of using local employment and enterprise to generate wealth for the county

·         A member from outside the Cabinet queried whether partner organisations had signed up to the financial commitment to the project. The Cabinet Member for Economy and Infrastructure confirmed that partnership funding was guaranteed

·         A member from outside the Cabinet expressed concern that the funding for the project from the DCMS would be received in arrears and queried whether there would be any implications for the Council's cash flow, limited reserves and the provision of services. The Cabinet Member for Economy and Infrastructure advised that it was usual practice to receive funding from the Government in this manner. The Council had adequate reserves and there would be no impact on the Council's resilience or the provision of services. The Leader of the Council gave an assurance that there would be no impact on any other projects. The Interim Chief Financial Officer commented that it was normal practice to incur expenditure before the money was received from Government. Cash flow was analysed on a daily basis and she was confident that the Council would be able to manage the project as outlined in the report

·         In the context of the Council's overall expenditure, the associated costs of the project were relatively small 

·         The Leader of the Council welcomed the project. Technology had a significant impact on the economy and the Council wanted to take a lead role as part of the West Midlands engine. It was a good example of the public sector and business community working together to develop technology

·         The Cabinet Member for Economy and Infrastructure understood the concerns raised about cyber security but emphasised the important lead role that QinetiQ would be taking in the project in this respect.

RESOLVED: that

a)    the work undertaken by Worcestershire Local Enterprise Partnership (WLEP), Worcestershire County Council and other partners in the successful application and entry into the Department of Digital, Culture, Media and Sport's (DCMS) Phase One of the 5G Testbed and Trials programme be endorsed;

b)    the award of the grant from DCMS of £4.81m and the role of Worcestershire County Council  as the lead partner and accountable body for WLEP, managing the programme, assuring and financing partners' claims and drawing down the funding be noted;

c)    TO RECOMMEND TO COUNCIL to note the additional £4.81m income and matching expenditure that will form part of the Economy and Infrastructure revenue budget in 2018/19, for this project;

d)    both the potential opportunities and risks that are identified within this report be noted and accepted;

e)    the Director of Economy and Infrastructure be authorised in consultation with the Head of Legal and Democratic Services to finalise and agree the necessary agreements to progress and support the programme; and

f)     the Director of Economy and Infrastructure be authorised to take necessary actions to progress and support the Worcestershire 5G Consortium, including support investigations for alternative funding sources to potentially extend the project.