Agenda item

Report of the Chamberlain.

The Committee considered a Report of the Chamberlain concerning the Prioritisation of 2021/22 Annual Capital Bids.

In response to a query around financial discipline, the Chamberlain stressed that if pressures arise, we will take stock. There was a great deal of uncertainty this year, not least around how the pandemic itself will play out, plus HMG’s response to the crisis, notably around the contents of the Budget in the spring, and the level of ongoing immediate financial support for businesses. In short, flexibility was key, and he was confident that the proposals had sufficient contingency planning built in.

In response to a query around whether the £20m figure allocated for the installation of the Barbican fire doors was accurate, the Chamberlain clarified that £20m had been put aside indicatively; the project still needed to be closely assessed by the Project Sub Committee to ensure we were maximising value for money - so it could be assumed that the figure will be reduced going forward. It should also be noted that the figure includes the replacement of other fittings, in addition to the fire doors, in the communal areas of the buildings across the Barbican Estate.

Members on the Barbican Estate Board (who also sit on FC) commented that due to historic agreements struck with the leaseholders, the Corporation, as the landlord, was responsible for the costs of the installation. The situation was compounded by the prohibition of our ability to establish a sinking fund to support these types of remedial and maintenance works.

RESOLVED – that the Committee approved the following:

1. Note and agree that the plans would be affordable, sustainable and prudent (refer to paragraphs 8-15).

2. Consider the green rated bids amounting to £83.5m detailed in the attached appendix, which represents the position agreed with Chief Officers and Service Committee Chairs, together with the re-ignited bid for loan funding of £15.6m for the City of London School for Girls.

3. Agree that provisions of £83.5m plus a loan facility of up to £15.6m (indicative at this stage) 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.

4. 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.

5. Agree 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.

6. Agree 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 the operation of the ‘one-in, one-out’ approach to funding of bids outside

of the annual process.

7. Agree to the carry- over of the unallocated provision of £32m of loan facilities

previously agreed for the Police and HRA.