Agenda item

Report of the Remembrancer.

The Committee considered a report of the Remembrancer seeking approval for financial support to be for provided for the 2021 Lord Mayor’s Show.

During discussion, the following points arose:

·      It was confirmed that it was very much intended to embed the professional experience of delivering the Show within the Corporation, so as to provide resilience and capability.

·      The historic confusion around intellectual property rights had now been resolved, clarifying irrevocably that said rights were owned by the City Corporation.

·      There was some discussion as to whether the Chairman of Finance was necessarily the most appropriate appointee to serve as a Director, in view of other commitments, although the incumbent’s robust engagement and history with the Show left him highly qualified. It was suggested that the option to appoint a nominee might also be considered.

·      Some reservations were expressed in relation to the commitment to underwrite any unquantified shortfall, given the potential exposure involved. It was, however, noted that the Show had never made a financial loss other than when cancelled due to COVID and that, on that occasion, the reserves built up through surpluses over the years had been sufficient to cover losses.

·      It was observed that the clarity around intellectual property rights meant that the Lord Mayor’s Show brand could now be commercialised properly, thereby ensuring greater opportunity for income and proper annual business planning, which would in turn mitigate against the risk of any losses requiring underwriting.

·      There was some discussion as to the structure of the Lord Mayor’s Show Ltd and the possibility of the City Corporation becoming the guaranteeing member. Some caution was expressed as to the implications of certain changes and it was suggested that the Remembrancer give consideration to questions of future structure at the appropriate juncture.

RESOLVED: That Members approve: -

1.     In-principle funding by means of an ongoing payment to the Lord Mayor’s Show Limited to reflect services hitherto paid for from local risk budgets principally by the Department of the Built Environment, the Town Clerk (Communications) and the City Surveyor, in support of the Lord Mayor’s Show, to be used exclusively to meet the costs of those services. For the 2021 Show, assuming it proceeds in its customary form, the total funding need in the current financial year would be approximately £210,000 and a payment of this amount would be made out of City’s Cash Finance Contingency. If agreed in principle, a further report would be provided setting out the proposed payment mechanism for future years.

2.     In the exceptional circumstances of this year, underwriting of potential losses in the operation of this year’s Show (and any losses from a future Show were they to arise), noting that surpluses in delivery of the Show in future years will be transferred by the Lord Mayor’s Show Limited to the City Corporation once a reserve of approximately £30,000 is established; and

3.     The appointment of the Chairman of the Finance Committee to the Board of the Lord Mayor’s Show Limited, the Board of the company and the General Purposes Committee of Aldermen having agreed the appointment, as a prerequisite for this Committee agreeing to the funding arrangement set out in this report.