Agenda and minutes

Apologies for absence were received from Munsur Ali, Rehana Ameer, Graeme Doshi-Smith, Alderman Professor Emma Edhem, Alderman Sir Peter Estlin, Alderman Robert Hughes-Penney, Deputy Clare James, Alderman Alastair King, Gregory Lawrence, Oliver Lodge, Andrew McMurtrie, Deputy Robert Merrett, Benjamin Murphy, Ian Seaton, Sir Michael Snyder, Mark Wheatley, and Deputy Tom Sleigh.

The Chairman thanked Oliver Lodge and William Pimlott for their contributions to the Committee. Mr Lodge and Mr Pimlott would not be standing for re-election to the Court of Common Council in March.

There were no declarations of interest.

To agree the public minutes of the meeting held on 25^th January 2022.

RESOLVED – That the public minutes and non-public summary of the meeting held on 25^th January 2022 be approved as an accurate record.

Report of the Chamberlain.

The Committee received a Report of the Chamberlain outlining the Committee’s workplan for the next several months.

RESOLVED – That the Committee noted the Report.

Report of the Town Clerk.

To be read in conjunction with ITEM 24 (Non-Public appendices)

The Committee considered a Report of the Town Clerk concerning several requests for delegated authority over the period 15 February – 30 April.

RESOLVED – That the Committee agreed to provide delegate authority for the Town Clerk, in consultation with the Chairman and Deputy Chairman of Finance Committee, to approve decisions for procurement processes outlined at Appendix 1 (Non-Public) in relation to:

• Barbican Public Catering Contracts (Contract Extension – for decision)

• Temporary Labour (Stage 1 – for decision)

• Physical Alterations to Bridges (Stage 1 – for decision)

• Highways Contract (Stage 2 – for decision)

• Cleaning and Window Cleaning Contracts

• Security Contract for the provision of Manned guarding services

and for several investment property matters outlined at Appendix 2 (Non-Public) in relation to:

• Lease- Regears, Long Lease Restructures and Development Agreements

• Disposals

• Gateway Reports  

Report of the Town Clerk.

The Committee received 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 note the draft minutes of the following Sub-Committee meetings:

Efficiency & Performance Sub-Committee – 21^st January 2022 – TO FOLLOW

Procurement Sub-Committee – 18^th January 2022

The Committee noted the draft public minutes and non-public summary of the following Sub-Committee meetings:

-        Efficiency and Performance Sub-Committee held on 21^st January 2022;

-        Procurement Sub-Committee on 18^th January 2022

RESOLVED – That the public minutes and non-public summary of the Efficiency & Performance Sub-Committee meeting held on 21^st January 2022 be noted.

RESOLVED – That the public minutes and non-public summary of the Procurement Sub-Committee meeting held on 18^th January 2022 be noted.

Joint Report of the Chamberlain and the Chief Operating Officer.

The Committee received a joint Report of the Chamberlain and the Chief Operating Officer which provided updates regarding the top risks within the Departmental Risk Register.

The Chamberlain advised Members that, at this point, it would not add value to establish inflationary pressures as a standalone Corporate Risk. She assured Members that the level of inflation is kept closely monitored and is considered one of the key triggers when it came to financial planning over the medium-term. She informed Members that there was a general inflation contingency fund in place as part of the corporate budget, and that there were additional contingencies within the main capital buildings budgets which took account of inflationary pressures.

In response to a query about whether the Audit & Risk Management (A&RM) Committee took a view on this, the Chamberlain confirmed that A&RM’s steer was to establish a standalone Corporate Risk for inflationary pressure in the Register. The Chairman added that the A&RM discussion had only recently take place and that officers would need some time to consider the ramifications of establishing a new Corporate Risk on these lines. He asked the Chamberlain to bring a discussion paper back to the next meeting of the Finance Committee in May. In addition, the former Chairman of A&RM (who attended the meeting as a guest of the Chairman) urged caution about the risk of a proliferation of Corporate Risks as it risked devaluing the process as a whole. 

A Member queried whether, given its reduction in value due to the increases in inflation, the City Corporation should be looking to lower its holding of cash; the Chairman welcomed this point and suggested that it was something which the Financial Investment Board should consider in due course.

RESOLVED – That the Committee noted the

Report of the Chamberlain.

To Follow.

The Committee considered a Report of the Chamberlain concerning the 2022/23 Budget and Medium-Term Financial Plan for City Fund.

A concern was raised by Alderman Luder (attending the meeting as a guest of the Chairman) in respect of the proposal to not increase the core Council Tax level; the City’s medium-term financial outlook was, as per the wording in the Report, on “a knife-edge”, with the upcoming loss of the Business Rates Growth Fund, and significant changes from the Fair Funding settlement compounding the risks. The decision not to increase, would in addition, send an unhelpful signal to central government that the City’s finances were, over the medium-term, in a better shape than was the case. Whilst currently the projections indicated a small surplus over 2022/23, it was incumbent upon the Court to use this opportunity to reinforce the City’s finances and “fix the roof whilst the sun was shining”, given the likelihood of further demands throughout this year and other cost pressures which need to be taken into account, including the national insurance surcharge and increased audit fees. The Member added that whilst increasing Council Tax would not deliver huge sums immediately, over five years an increase of 1.99% would result in a cumulative income of £2.1m, which would have a material and positive impact on the City’s financial sustainability over the medium-term. The Member therefore moved to amend the recommendation concerning the Core Council Tax to increase it by 1.99%.

A number of Members highlighted their concerns about the implications of an increase to the level of Core Council Tax at this point in the political cycle; after all, an increase would only generate a relatively modest sum of money from a relatively modest number of residents. It was thought unlikely that Government will look at a

Report of the Chamberlain.

To Follow.

The Committee considered a Report of the Chamberlain concerning the 2022/23 Budget and Medium-Term Financial Plan for City’s Cash.

RESOLVED – That the Committee approved the following:

1. Noted the latest revenue budgets for 2021/22 (paragraphs 19 to 22).

2. Agreed the 2022/23 revenue budgets, including the following measures:

• Noted the overall budget envelope for City Cash.

• Approved the overall financial framework and the revised Medium-Term Financial Strategy (paragraphs 2-18).

• Unfunded additional revenue bids: To be avoided during 2022/23 - 2025/26 with a zero-based budget review to take place to reprioritise spend in line with new Corporate prioritises.

• Carry forwards from 2021/22 to be minimised, however where significant pressures have been highlighted by departments these are reviewed in light of on-going challenges.

3. Approved the 2022/23 Capital and Supplementary Revenue Project Budgets for City’s Cash amounting to £20.4m (paragraph 27).

4. Approved the allocation of central funding of up to £9.0m for City’s Cash to meet the cost of the 2022/23 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). In addition, a contingency is held under the capital programme up to £1.0m - given the pressures on construction and labour inflation rising up to 15% (paragraph 30).

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

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

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning the Government Actuary’s Department (GAD) second Section 13 Report following the 2019 actuarial valuation of the City’s Pension Fund in December 2021.

RESOLVED – That the Committee noted the Report.

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning action taken in respect of any deficit or surplus in the City’s On-Street Parking Account.

The Chairman reminded Members that the City’s new Local Plan would result in a reduction of on-street parking availability across the Square Mile, so overall income from this account, at least in future years, will decrease.

RESOLVED – That the Committee noted the Report.   

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning the Chamberlain’s Departmental Business Plan.

The Chairman asked Members to extend the delegation for him and the Deputy Chairman to sign off the audit Report for the City Fund accounts when it was finalised.

RESOLVED – That, in addition to the extended delegation outlined above, the Committee noted the Report.

Report of the Chamberlain.

To be read in conjunction with ITEM 25 (Non-Public appendices)

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

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 25th January 2022.

RESOLVED – That the non-public minutes of the meeting held on 25^th January 2022 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 note the draft non-public minutes of the following Sub-Committee meetings:

Efficiency & Performance Sub-Committee – 21^st January 2022 – TO FOLLOW

Procurement Sub-Committee – 18^th January 2022

The Committee noted the draft non-public minutes of the following Sub-Committee meetings:

-        Efficiency and Performance Sub-Committee held on 21^st January 2022;

-        Procurement Sub-Committee on 18^th January 2022

RESOLVED – That the non-public minutes of the Efficiency & Performance Sub-Committee meeting held on 21^st January 2022 be noted.

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RESOLVED – That the non-public minutes of the Procurement Sub-Committee meeting held on 18^th January 2022 be noted.

Report of the Executive Director, Environment.

The Committee considered a Report of the Executive Director, Environment concerning the highway construction and maintenance contract.  

Report of the Director of the Museum of London.

To Follow.

The Committee considered a Report of the Director of the Museum of London concerning the Museum’s 2021/22 Pay Award.

Report of the Chief Operating Officer.

To Follow.

The Committee received a Report of the Chief Operating Officer concerning IT Security Works (Microsoft E5).

To be read in conjunction with Item 5.

The Committee noted the non-public appendix to ITEM 5 (Requests for Decision under Delegated Authority Procedures).

To be read in conjunction with Item 14.

The Committee noted the non-public appendix to ITEM 14 (Contingencies).

There were no non-public questions relating to the work of the Committee.

There were no items of urgent business.

To agree the confidential minutes of the meeting held on 25th January 2022.

RESOLVED – That the confidential minutes of the meeting held on 25^th January 2022 were approved as an accurate record.

RESOLVED – That the Committee noted the Resolution of the Digital Services (Sub) Committee.

Report of the Executive Director of Innovation and Growth (IG).

The Committee considered a Report of the Executive Director of Innovation and Growth (IG) concerning Destination City.

Joint Report of the Chief Operating Officer and the Commissioner of the City of London Police.

The Committee received a Report of the Commissioner of the City of London Police concerning an IT assessment for the City of London Police.

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.