Agenda item

Report of the Chamberlain.

Members received a report of the Chamberlain concerning the City’s Estate 2024/25 Budget and the Medium-Term Financial Plan.

A Member, also the Chairman of the Capital Buildings Board, raised a query concerning the budget for the Smithfield Annexe Buildings. The Chamberlain clarified the position and undertook to ensure that the final report reflected the correct position when submitted to the Court of Common Council.

RESOLVED, that – the Committee endorses the below recommendations for onward approval by the Court of Common Council:

1.0  To note and approve the overall budget envelope for City’s Estate 2024/25 revenue budgets.

1.1        Additional funding is required for new on-going cost pressures and have been included as budget uplifts:

1.1.1    Agreed pay award from 1^st July 2023.

1.1.2    Net 3% inflation uplift to local risk budgets.

1.1.3    £2m central provision to cover assumptions for Ambition 25 (Reward Refresh) – subject to recommendations of the Corporate Services Committee.

1.1.4    £100k increase in legal costs to support specialist advice.

1.1.5    £540k contingency held centrally to support the increase in State Visits.

1.1.6    £20k funding to support RASC away day.

1.1.7    £113k provision set to support volunteering.

1.1.8    £148k recognition of staff contribution through staff summer events and annual lunch.

1.1.9    £380k funding for Corporate Graduate Scheme, increasing to £710k from 2025/26.

1.1.10 £10k support for on-going Benefits-in-Kind review and annual reporting.

1.1.11 Shortfall on Occupational Health Physician services (£56k split between funds).

1.1.12 £85k increase for Mayoralty and Shrievalty allowances as agreed at the Joint Deputation meeting on 20 March 2023. For 2024/25 an increase of £62k is being proposed – subject to Joint Deputation meeting on 28 March 2024.

1.1.13 £400k provision for possible increases to Members allowance.

1.2        For Cyclical Works Programme (CWP):

1.2.1    Funding of £71m has been allocated within City’s Estate to address £28m backlog of works and £43m forward plan, towards delivery of programme across the next 5 years from 2024/25. 

1.2.2    Following meeting with the Joint Resource Allocation Sub Committee and Service Committee Chairmen, additional headroom has been created to address urgent health and safety issues at the Guildhall School of Music and Drama over the 5-year forward plan totalling £12.5m (£8m to 2027/28). 

1.2.3    Funding identified from reserves in City’s Estate resulting in an additional draw on assets endorsed by Finance Committee in December, to be ringfenced to the programme. Delivery will need to be managed robustly to avoid cost creep.

1.3        To address inflationary pressures going forward assumptions include 2% uplift from 2025/26 onwards.

1.4        Savings still to be achieved from Commercial - procurement and implementation of the Enterprise Resource Planning system have been profiled (£0.3m) to 2025/26 and (£0.6m) in 2026/27 respectively. Permanent savings from previous savings programme are expected to crystallise by 2024/25.

1.5        Other one-off pressures and opportunities for transformation in 2024/25 outlined in paragraph 11 to be funded from forecast carry forward underspends from 2023/24.

1.6        Unfunded additional revenue bids (paragraph 10) to be avoided during 2024/25, unless these can be prioritised from savings or income generated from the Corporation’s Transformation Programme.

2.0 Approve the overall financial framework and the revised 5-year Financial Strategy (paragraphs 4-30).

3.0 Approve the 2024/25 Capital and Supplementary Revenue Project Budgets for City’s Estate amounting to £218.3m (paragraph 27).

4.0 Approve the allocation of central funding of up to £218.3m for City’s Estate to meet the cost of 2024/25 approved capital schemes. Release of such funding being subject to approval at the relevant gateway and specific agreement of the Resource Allocation Sub-Committee at Gateway 4(a). Note the agreed capital envelope for new bids of £5m in 2024/25 (paragraph 27-30).

5.0 Delegate authority to the Chamberlain to determine the final financing of capital and supplementary revenue project expenditure.