Agenda item

Report of the Chamberlain.

The Committee received a Report of the Chamberlain concerning the Corporation’s financial position and the impact of COVID-19 on budgets up to the end of October.

In response to a query, the Chamberlain highlighted that the forecast year-end position across all funds is an overspend of £32.9m at the end of October (Period 7). This represented an improved position of £3.2m when compared to £36.1m at the end

of September, this was primarily driven by a reduction in expenditure for Barbican Centre

(£1.4m) and additional income for the City of London Police (£1.0m).

Despite the improvement, the full scale of rental losses, whilst for now, largely undetermined, will likely have a significant material impact on the Corporation’s financial position in 2021 and could offset the improvements we have made in recent weeks.  

In response to a separate query concerning the availability of business interruption insurance, officers and other Members responded that whilst business interruption related insurance products, including Pandemic cover, are available on the market, they come at a significant cost. A court case currently taking place is examining whether insurers are liable to provide insurance payouts to small businesses as a result of Covid. Officers will keep both the case monitored, and, more widely, whether Covid prompts more competitive prices for business interruption insurance products.

RESOLVED – That the Committee noted the Report.