Agenda item

Report of the Chamberlain.

The Committee considered a report of the Chamberlain which provided updates regarding the top risks within the Departmental Risk Register.

In response to a query, the Chamberlain confirmed that the £30m allocated in reserve to mitigate CR35 (Unsustainable Medium-Term Finances) is based upon a more pessimistic scenario (e.g. if rental income flows as a result of the pandemic are worse than forecast). The Chairman added that the budget monitoring for the Q2 half-year point (due at the October meeting of the Finance Committee) should provide more insight about how we are doing against the budget and provide an early outlook vis-à-vis our fiscal position over the medium-term.

A Member expressed concern about the impact on the medium-term position due to rising inflation for both materials and labour when it came to City’s projects. Noting these concerns, the Chamberlain accepted that whilst it was anticipated that the 2022/23 budgets were being planned on a “flat cash” basis, the picture beyond the next financial year was difficult to project, given the inflationary pressures in the wider economy; early provisional discussions for the 2023/24 budget setting process had been taking place and would be taking inflation into account.

Concerns about IT, level of service and cost that the Force is getting. Broader review of whether IT is being damaged by a lack of resources/sufficient budget.

Commenting on CHB IT 031 (IT Revenue Budget), the Chief Operating Officer confirmed that a value-for-money review of IT usage for the City of London Police was currently being undertaken and any emerging recommendations would be reviewed to see if any were more widely applicable to the Corporation as a whole.

The COO confirmed that the structural changes in the IT Division had yet to be finalised; several other levers were being examined, including a review which was currently being undertaken to determine which IT contracts could be amended or retendered in order to secure further savings. The Deputy Chairman stressed that the key driver behind the TOM was to close the City’s budget gap, not to cut or deleteriously reduce services to the detriment of the Corporation. Departments should, in the first instance, rigorously analyse what they could do to make their service more efficient, alongside identifying which areas they provided that were no longer necessary.

A Member asked about whether, given the review of supplier contracts, there was scope for engaging new suppliers from more diverse backgrounds. The COO responded that a Report would be coming back to the Committee in October on supplier diversity and this would be a key component for the new Commercial Director.

RESOLVED – that the Committee noted the Report.