Agenda item

(CSP: SLE, SLE2, HQL)

Purpose: To seek Executive approval for entering into a funding agreement with Great Western Railway (GWR) to facilitate the improvement works to Newbury Railway Station in accordance with the Thames Valley Berkshire Local Enterprise Partnership (TVB LEP) funding.

Resolved to delegate authority to:

(a)  the Head of Development and Planning (in consultation with the Head of Finance and the Portfolio Member for Transport) to award the funding in connection with improvement works at Newbury Station to GWR. The source of this funding is from the TVB LEP and will only be allocated once it is available.

(b)  the Head of Legal Services to enter into a funding agreement with GWR.

This decision is not subject to call in as:

·      a delay in implementing the decision would cause the Council serious financial implications.

therefore it will be implemented immediately.

The Executive considered a report (Agenda Item 9) which sought approval for entering into a funding agreement with GWR to facilitate the improvement works to Newbury Railway Station in accordance with the Thames Valley Berkshire Local Enterprise Partnership funding.

Councillor Jeanette Clifford explained that while this paper was essentially procedural, it gave her the opportunity to remind the Executive that Newbury Railway Station would shortly be transformed by a joint WBC and Railway Industry project as an interchange, as a building and in the facilities it offered to the growing number of passengers that used it every day, by the investment of more than £18m from:

•           The railway industry;

•           Grainger – the Council’s partners in the Market Street Development;

•           A small input from this Council; and

•           A major contribution of about £6m from the Growth Fund, administered on behalf of all the Berkshire Authorities by Thames Valley Berkshire Local Enterprise Partnership (LEP).

Under the current rules, the LEP could only award funding to a local authority. However, as the Council’s partners at Great Western Railway (GWR) would be responsible for work within the station itself, the proposal before the Executive allowed for the correct funding to be passed by the Council to GWR. Governance of this project was extremely rigorous and Councillor Clifford hoped there would be agreement to this arrangement.

In response to a query from Councillor Lee Dillon, Councillor Clifford confirmed that the process for the transfer of funding to GWR would be in stages.

Councillor Jeff Brooks welcomed this proposal. However, he felt the report was light on some of the details. For example, when plans would be made available. Councillor Clifford advised that the final, very detailed business case would be signed off before Christmas. She added that further information on how the funding would be expended was contained in the appendices to the report.

Councillor Clifford concluded by stating that the station would become an excellent gateway to Newbury.

RESOLVED that authority be delegated to:

(a)          the Head of Development and Planning (in consultation with the Head of Finance and the Portfolio Member for Transport) to award the funding in connection with improvement works at Newbury Station to GWR. The source of this funding is from the TVB LEP and will only be allocated once it is available.

(b)          the Head of Legal Services to enter into a funding agreement with GWR.

Other options considered:

·                    The consideration of various options for the improvement works at Newbury Station are dealt with in the Options Assessment Report (OAR) which forms part of the formal documentation in support of this scheme.  The OAR can be found on the Council’s website at www.westberks.gov.uk/sep under Project 24: Newbury – Railway Station Improvements.

·                    Given the fact that a large proportion of the proposed improvement works will affect land and buildings on railway land (owned by Network Rail and leased to GWR), it is not considered an option for the Council to procure the work directly.  The only realistic option for the delivery of the works is for GWR to procure the improvements works within the station lease area in accordance with their Procurement Strategy.

·                    An alternative option to the Council awarding funding to GWR would be for TVB LEP to fund GWR directly.  The mechanisms in place do not currently allow for this and so the strong preference is for the Council to receive funding from the TV LEP and to then award a portion of this to GWR for their elements of the scheme.