Agenda item

Prioritisation of 2021/22 Annual Capital Bids - Stage 2 Proposals

Report of the Chamberlain.


The Sub-Committee considered a report of the Chamberlain concerning the Stage 2 proposals of the prioritisation of 2021/22 Annual Capital Bids.


There was an extensive discussion on the loan facility for the City of London School for Girls of up to £15.6m. Some Members felt quite strongly that at a time when the City Corporation were having to prioritise it would be politically and reputationally difficult to continue with at this time. The Headteacher of the City of London School for Girls responded with the context of the request for a loan, which would be subject to a business case and proper scrutiny. Members were reminded that the City of London School for Girls could not borrow from the bank and could only borrow from the City of London Corporation. A Member also responded to the points made about providing a loan at a time where the City Corporation was facing 12% efficiencies, reminding the Sub-Committee that capital revenue is very different from approving a loan.


In conclusion, Members reached the conclusion that they could not approve the £15.6m until a business case was submitted to this Sub-Committee. Deputy Tom Sleigh requested for his dissent of this decision be recorded.


RESOLVED, that:-

·         It be noted and agreed that the plans be affordable, sustainable and prudent.

·         The green rated bids amounting to £83.5m detailed in the report’s appendix, which represented the position agreed with Chief Officers and Services Committee Chairs, be agreed.

·         A business case be brought back to this Sub-Committee concerning the the re-ignited bid for load funding of £15.6m for the City of London School for Girls.

·         It be agreed that provisions of £83.5m plus it be agreed in principle that a loan facility of up to £15.6m (indicative at this stage), subject to a full business case, be made in the draft medium term financial plans of the three funds and that appropriate contingencies be set aside for approval by the Finance Committee and Court of Common Council as part of the annual budget setting process.

·         Request that the Corporate Asset Sub and Projects Sub Committees closely scrutinise the scope of the St Lawrence Jewry repairs project to ensure that all value engineering opportunities are fully explored, with a keen eye on value for money.

·         It be agreed that the bids rated as amber detailed in the appendix be placed on a reserve list to be funded from savings in provisions for green rated schemes should their urgency escalate.

·         It be agreed that the financial disciplines currently in place be continued whereby

o   Central funding will be withdrawn for schemes that slip by more than one year; and

o   The operation of the ‘one-in, one-out’ approach to funding of bids outside of the annual process.

·         It be agreed to the carry-over of the unallocated provision of 332m of loan facilities previously agreed for the Police and HRA.

Supporting documents: