Agenda and minutes

Apologies for absence were received from Dominic Christian, Oliver Lodge, Catherine McGuinness, Benjamin Murphy, and Ian Seaton.

There were no declarations of interest.

To agree the public minutes of the meeting held on 19^th January 2021.

RESOLVED – That the public minutes of the meeting held on 19^th January be approved as an accurate record.

Report of the Chamberlain.

The Committee received a joint Report of the Town Clerk and the Chamberlain concerning the Committee’s workplan for the next ten months.

RESOLVED – that the Committee noted the Report.

Report of the Town Clerk.

The Committee considered a report of the Town Clerk which advised Members of the key discussions which had taken place during recent meetings of the Committee’s Sub-Committees.

RESOLVED – that the Committee noted the report.

To receive the public minutes of the joint meeting of the Efficiency and Performance Sub Committee and the Resource Allocation Sub-Committee with Committee Chairmen.

RESOLVED – that the public minutes of the joint meeting of the Efficiency & Performance Sub-Committee and the Resource Allocation Sub-Committee held on 21^st January be approved as an accurate record.

Report of the Town Clerk.

The Committee considered a Report of the Town Clerk concerning the City Grants Education Spending (CGES) Working Party.

RESOLVED – that the Committee endorsed Jamie Ingham Clark as Finance Committee’s representative on the CGES Working Party.

Report of the Chamberlain.

The Committee received a report of the Chamberlain which provided updates regarding the top risks within the Departmental Risk Register.

Members were encouraged to see the positive direction of travel for the Police Funding Risk; it was anticipated that the risk would be reduced to amber over the medium term.

A Member queried whether we needed to be more cautious about the likelihood of the CR35 (Unsustainable Medium-Term Finances) Risk being reduced to amber in the short-medium term; there were many external unknowns that could prove very damaging to the Corporation’s finances.

RESOLVED – that the Committee noted the report.

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning period 9 Budget Monitoring.

RESOLVED – that the Committee noted the Report.

Report of the Chamberlain.

The Committee considered a Report of the Chamberlain concerning the 2021/22 City Fund Budget.

The Chamberlain opened the discussion by stressing that, despite significant external and internal challenges (not least concerning rental income and the Barbican Centre’s finances), good progress was being made in out efforts to balance the books - both over the short and medium term. He commended Members for their constructive and collegiate approach in ensuring that the 12% savings targets were baked into the 2021/22 Budget; adding that the recent Member-officer bilateral meetings displayed a very encouraging sense of collaboration and collective endeavour which bode well for the Corporation’s efforts in sticking to the medium-term “flight path”. In short, we were in good place, but a great deal of hard work was still required.

The Chairman thanked the Chamberlain and his team for their hard work in delivering the Budgets. He emphasised that whilst he was instinctively a low tax politician, this year, in particular, was a bad one to increase tax; given the damage to livelihoods and economic activity over the past 12 months, it would extremely hard to tell residents and businesses that we were raising the level of the core Council Tax and Business Rates.

However, he pointed out that, given the huge challenges facing the most vulnerable, and by extension, the Corporation’s Department for Communities and Children’s Services, a 3.00% increase to the Adult Social Care Precept was justified, and would be a prudent and sensible intervention which took into account the pressures on the most vulnerable.

Several Members expressed their firm support for these proposals.

In response to a query the Chairman confirmed that, when it came to the Core Council Tax bills, the City would remain the third lowest of all local authorities across Greater London (Wandsworth and Westminster had

Report of the Chamberlain.

The Committee considered a Report of the Chamberlain concerning the 2021/22 City’s Cash Budgets and medium-term financial plan.

RESOLVED – that the Committee:

1. Noted the latest revenue budgets for 2020/21 (paragraphs 18 to 25 in the Report).

2. Agreed the 2021/22 revenue budgets, including the following measures:

• Note the overall budget envelope for City Cash incorporates 12% savings

as agreed by Finance Committee in December and are consistent with

approved savings flight path.

• Unfunded additional revenue bids: To be avoided during 2021/22 -

2024/25 and carry forwards from 2020/21 to be minimised.

• Grants: Application of 12% savings, unless agreed co-funding arrangement.

3. Approved the 2021/22 Capital and Supplementary Revenue Project Budgets for

City’s Cash amounting to £33.3m (paragraph 27).

4. Approved the allocation of central funding of up to £17.7m for City’s Cash to meet

the cost of the 2021/22 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) (paragraph 29).

5. Approved the allocation of central funding to provide an internal loan facility of up to £15.6m for the City of London School (CLSG) to progress its masterplan – release of such funding being subject to approval at the relevant gateway and separate approval of the loan terms and conditions (paragraph 30).

6. Delegated authority to the Chamberlain to determine the final financing of capital and supplementary revenue project expenditure.

7. Endorsed this report for onward approval to the Court of Common Council.

Report of the Chamberlain.

The Committee considered a Report of the Chamberlain concerning the Bridge House Estates (BHE) Revenue Budget for 2021/22 and the Medium-Term Financial Plan.

RESOLVED – that the Committee:

1. Noted the latest revenue forecast for 2020/21 (paragraphs 6 to 7 in the Report).

2. Approved the 2021/22 revenue budget and Medium-Term Financial Plan for period 2022/23 – 2024/25 (paragraphs 8 to 10).

3. Approved that the additional allocation of income reserves available for charitable funding be held at £180m, a reduction of £20m from the sum allocated in March 2020, until a further forecast is presented for review (paragraph 12).

4. Approved that free reserves are maintained at between £33-55m over and above the agreed policy of £35m across the period of the Medium-Term Financial Plan as a mitigation against the uncertain period in which the charity is operating (paragraph 11).

5. Approved the 2021/22 capital and supplementary revenue project budgets (paragraph 16).

6. Noted that a revised Medium-Term Financial Plan for the charity will be presented for approval, should the power for total return accounting for endowed charities be granted by Supplemental Royal Charter currently under consideration by the Privy Council’s Office – timing to be confirmed (paragraph 15).

7. Endorsed this report for onward approval to the Court of Common Council.

Report of the Chamberlain.

The Committee considered a Report of the Chamberlain concerning the administration costs and reserves policies as applicable to the Sundry Trusts and Open Spaces Charities.

RESOLVED – that the Committee:

1) Approved the change in policy such that each of the Sundry Trusts and Open Spaces charities listed in Appendix A bear the legitimate and reasonable costs and expenses incurred by the City Corporation in administering each charity, whether as charity trustee itself or where all the trustees are individuals appointed by, or as a consequence of their position with, the City Corporation (paragraph 6 to 7).

2) Noted the change in policy by the City Corporation as charity trustee in each case, and approve the revised Reserves Policies for the charities as listed in Appendix B Table B.1 (paragraphs 8 to 13)

3) Delegated authority to the Chamberlain to determine with reference to the Charity’s SORP and the particular circumstances in each case, the appropriate target level of free reserves for each of the charities listed in Appendix B Table B.1.

Noted that decisions for those charities listed in Appendix A Tables A.2 and A.3, and Appendix B Tables B.2 and B.3 as relevant, will be referred to the responsible decision- making body in each case.

Report of the Chamberlain.

The Committee considered a Report of the Chamberlain concerning the Housing Revenue Account.

The Chamberlain introduced the Report and reminded Members that, in general, the HRA should be self-supporting and it cannot use other City Fund resources of the Corporation to fund revenue expenditure. Additionally, the HRA is not permitted to borrow to cover revenue expenditure and there is currently no national compensation package forthcoming for lost HRA income, although this was requested by the Local Government Association as a response to the local government settlement in 2020-21.

Following a detailed discussion, a number of concerns were raised about the risk of setting a precedent around the City using City’s Cash funds to support the HRA;   it was decided that further consideration was required and, therefore, Members agreed to provide the Town Clerk, in consultation with the Chairman and the Deputy Chairman of Finance Committee, delegated authority to approve the support for the HRA, once they were content with the proposal.

RESOLVED – that the Committee:

Agreed to provide the Town Clerk, in consultation with the Chairman and the Deputy Chairman of Finance Committee, delegated authority to approve the support for the HRA, once they were content with the proposal.

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning the Annual On-Street Parking Accounts 2019/20 and Related Funding of Highway Improvements and Schemes.

RESOLVED – that the Committee:

Noted the contents of this report for their information before submission to the Mayor for London.

Report of the Town Clerk.

The Committee considered a Report of the Town Clerk concerning the Court Submission on a new Committee for Next Generation Fraud and Cyber Crime Reporting and Analysis Service Project.

RESOLVED – that the Committee:

Endorsed the creation of a new stand alone, time-limited committee to oversee the FCCRAS project and for Finance Committee to pass on its decision-making responsibilities on this project to the new committee. Submission of the proposal to the Court of Common Council will be subject to consultation with, and approval from, the relevant committees referenced in paragraph 15.

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning the work of City Procurement.

RESOLVED – that the Committee noted the Report.

Report of the Chamberlain.

The Committee considered a report of the Chamberlain which provided Members with information regarding the current balance of the Finance Committee Contingency Funds for the current year.

The Chairman informed Members that the International Disaster Fund still had a balance of £25,000. He proposed that, should we avoid a further call on the Fund before the end of the financial year, the £25,000 is donated to City Harvest to support the ongoing Livery Kitchen Initiative. Members endorsed this proposal.

RESOLVED – that the Committee noted the report.

There were no questions.

There were no urgent items.

MOTION - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

RESOLVED - That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act.

To agree the non-public minutes of the meeting held on 19^th January 2021.

The non-public minutes of the meeting held on 19^th January were approved as an accurate record.

Report of the Town Clerk.

The Committee noted a report of the Town Clerk which advised Members of the key discussions which had taken place during non-public sessions at recent meetings of the Committee’s Sub-Committees.

To receive the non-public minutes of the joint meeting of the Efficiency and Performance Sub Committee and the Resource Allocation Sub-Committee with Committee Chairmen.

RESOLVED – that the non-public minutes of the joint meeting of the Efficiency & Performance Sub-Committee and the Resource Allocation Sub-Committee held on 21^st January be approved as an accurate record.

Joint Report of the Chamberlain and the City Surveyor.

The Committee considered a Joint Report of the Chamberlain and the City Surveyor concerning Mechanical and Electrical Maintenance and Building Repairs and Maintenance Services.

Report of the Director of Human Resources.

The Committee considered a Report of the Director of Human Resources concerning an extension to the Managed Service Temporary Agency Resource Contract.

Non-Public Appendix to ITEM 18 (Central Contingencies)

The Committee noted the non-public appendix to ITEM 18 (Central Contingencies)

Report of the Town Clerk.

The Committee noted a report of the Town Clerk detailing a non-public decision taken under urgency procedures since the last meeting.

Members considered a non-public question relating to the work of the Committee.

There were no items of urgent business.