Minutes 16 July 2026

1.

Introduction and Apologies:

Introductions were made and apologies were noted as above.
Brian started the meeting.

2.

Conflict of Interest Declaration:

None.

3.

Minutes of Last Meeting:

The minutes of the last meeting held on 21st May were noted as a true record.

4.

Projects Progress Update:

4.a

(Paper 1) Innovation Centre Highlight Report 

Neil provided an overview of his report:

• Speller-Metcalfe have been appointed as the design and build contractor up to
stage 4 design, with an option to extend into delivering the development in full.
Stage 4 design work is now complete and work packages have been used to
competitively source quotes from sub-contractors. Costs were previously based on
agreed Stage 3 estimates between Speller-Metcalfe and appointed cost
consultants (Gleeds). The onset of the US-Iran conflict has however led to
significant, unforeseeable and sudden cost increases. Whilst the available budget
is sufficient to cover the initial contract value, additional funds are needed as
contingency.

• MHCLG have confirmed the deadline to spend Town Deal funding has been
extended until end of March 2028, providing additional time if needed. Planning
permission was granted on December 11th. Signage for the Innovation Centre site
has also been installed to keep the public informed.

• Value engineering works previously led to slight programme slippage with an
additional 8 weeks required to bring the project back in line with agreed budget.
The extension of time from MHCLG allowed additional market testing to be
undertaken with construction sub-contractors (as above). This approach has been
used to maximise cost certainty with quotes based on final specifications, as
opposed to sub-contractor appointments based on earlier stage estimates. We remain on track to enter into contract for the construction phase in July, ahead of
starting on site in August.

• The final business case for GBS LEP funding has been approved by the EZ
Partnership Board and ratified by BCC Cabinet on 20th January 2026. The funding
agreement will now be signed and returned following sign off by Council on June
29th.

Next steps:

• Return grant funding agreement to Birmingham City Council.

• Agree and finalise contract terms and novation arrangements with Speller
Metcalfe.

• Enter into contract with Speller Metcalfe for the construction phase.

Discussion followed:

• Neil advised that whilst negotiations are taking place with Spellers and final fee is very close to being agreed.

• Brian agreed, as there was often a tendency for nominated suppliers to raise
prices in adverse situations - he pointed out that our cost consultants are also our
agents.

• Following some value engineering etc, Neil advised the costs were now just under £14m.

• Neil advised the good news was that this now has Exec and full Council approval.

• There is a proposal to sign a letter of intent so that Spellers can start placing
orders and start construction end August and no later than the first week in
September (as stipulated in the letter of intent).

• Brian said the letter needs to be very specific in what it says, especially regarding the start date. Neil advised Claire Green in Legal has reviewed the letter and confirmed it is ok.

• Brian asked if anyone had any points to raise. Steve said all looked good.

(Paper 2) Innovation Centre Programme (Key Milestones)

Neil reviewed the key milestones and discussion took place.

• Commencement of operation envisaged Jan/Feb 2028.

• Neil advised he had now concluded all the information gathering and fact finding
and learning visits to other facilities, regarding the future running of the Centre.
Visiting the Shell Store was particularly useful as they had an external operator in
place and had encountered various issues and were desperate to take back
control.

• Brian said he felt perhaps external operators would be more interested in
protecting their margins rather than looking after the users etc.

• Neil felt we could start by operating the centre ourselves with some help but
maintain overall control. Brian agreed, provided we find the right people to help.

• Need to finalise tenancies/service charges/staffing etc. Now we have more of an
understanding, we can move forward.

• Neil felt more confident about the future and that we potentially have a good
business, as he said even though the Shell store was very profitable, Oxford
Innovation were not interested in it, but they appear to be interested in perhaps
operating out of our building.

• Neil advised that although some branding work had been carried out by HoW
college he felt we now need to perhaps also get branding professionals involved.

• Amelia asked if the branding proposals could be sent through to the Comms team, as they have some experience in that area etc.

(Paper 3) Innovation Centre Construction Paper

Neil gave an overview of the paper and discussion took place:

• The paper gives the background of the project - from the beginning.

• The key is the finance section, detailing budget.

• Neil talked through the figures:
o Fixed price additional items may need to be added as the project progresses
o Cost position could therefore rise

• Neil advised that a fully costed risk register had been put in place so that risks
can be quantified.

• Neil then shared another paper – the Redditch risk register.

• Neil shared a costings package table, detailing the variance in costings.

• Neil advised there had been a significant saving of over £200k on the heating
system, by choosing a VRF system instead of previous 4 pipe system which also
incorporated air source heat pumps. He had been assured this was equally
effective and meant room could be controlled individually.

• Brian advised he had also carried out                          on the costings and
as a result of global/US-Iran wars, noted that steel costs etc have risen by 28-30% and whilst unwelcome, this has all been budgeted for with market references etc. 

4b

(Paper 4) Redditch Public Realm

Neil provided a review of the report:

• All works to Unicorn Hill and Church Green West have been completed. Note that
project is now also financially complete with £897,501 confirmed underspend

Next Steps:

• A decision was made to pause any further public realm works, whilst costs for the Innovation Centre were finalised. Unfortunately, the US-Iran conflict has led to
significant, unforeseeable and sudden cost increases meaning that insufficient
funds will remain to carry out further public realm works. Remaining public realm
developments to Redditch town centre will however be prioritised for inclusion in
future government funding packages.

Discussion followed:

• Neil advised there were currently no funds available to carry out the works at
Church Green East but that there may be a possibility in the future to obtain
funding from another programme, as public realm works were very important.

• Brian said the obstacles were from the Church as they also wanted various works to be carried out, which got in the way of us doing our work etc.

• Rachel reiterated we will be looking to find funding from elsewhere as we already have the worked-up schemes waiting to go.

5.

Railway Station Quarter Update - verbal (Steve Ashton)

Steve advised:

• Any works / commitment on hold until the wider DfT Integrated Funding Delivery Plan goes through WCC Cabinet in September (this is delayed from the expected July date, I reported last time – that was still scheduled after this meeting). Then if approved by Cabinet/WCC it will come down to working on options and resubmitting a business case and evidence of VfM, which equally needs to be agreed.

• It was acknowledged that the Chair’s letter to Cllr Matt Jenkins had been received – and was with Steve to respond on the Council’s behalf.

Discussion followed:

• Brian asked when Steve says ‘respond’, is Steve being asked to respond positively or not?

• Steve said firstly, some assumptions needed to be corrected, and he needed to get politicians and seniors talking. He will make sure the new cabinet members are briefed and then respond accordingly but can’t work on it until September.

• Brian said the aim was to support economic regeneration in the town and would
like the County Council to understand that it is an economic investment, not a
politician’s scheme to look at as a temple to their achievements. Brian said we see
this as central to the town’s development to reenergise the town and kick-start it
into the future. Please can Steve ensure politicians understand that?

• Rachel advised Steve that it would be good to work with the County Council on
any proposals, as they are being developed.

• Steve agreed this approach but needed to get the agreement for funding through cabinet first.

• Rachel asked what is it that is going to cabinet, other than just to earmark the
money?

• Steve said it is a wider plan with this item integrated, so the business case for that money to be spent needs to be agreed first. There needed to be a political
alignment between Redditch and Worcester.

• Brian said there is a need for both Redditch and Worcester to agree on this, but
Rachel was asking about choreography.

• Steve advised that in September the funding is to be decided then we can work on the business case of what it wants to be. He said CMI needs to be fully briefed
first.

• Steve reiterated that the letter is with him to respond to, in which Brian requests to have a conversation etc. Steve would not be drawn out on how he was going to respond.

• Brian asked if the regeneration message has landed within Worcester CC or not.
Steve said he believes they understand but was just unsure on the support.

• Cllr Dormer asked Steve about the full council meeting that had taken place today and that there was a chance there had been massive changes within.

• Brian advised he will wait for Steve’s reply.

6.

AOB (Chair)

Brian asked if there was any other business to be discussed.

• Rachel advised the LGR result and timelines. It was confirmed we will be moving
forward with two unitary councils, one in the North and one in the South. There
would be no direct impact for this board, and we would continue to work with the
Council throughout this. The Innovation Centre programme would be finalised
before vesting day in April 2028.  

7.

Date of Next Meeting:

Thursday 24th September, 10.30am (Hybrid, The Space, 2nd floor, Town Hall)